Greenko Share Discussion Threads

[sportbilly1976] 30/6/2015 11:54

nice 112k buy slipped in there.....good volume and there wouldn't appear to be any overhang or sellers to clear from the recent rise

[sportbilly1976] 30/6/2015 10:26

moving up nicely now...

[phowdo] 30/6/2015 09:11

Back up we go now all the traders have gone :)

[sportbilly1976] 29/6/2015 15:55

ready and set for the next move up?

[sportbilly1976] 29/6/2015 10:54

today's drop at the open seems (at the moment) to have nothing more than to trigger some stops...plenty now significantly off their opening lows.

How much more can Greece get priced in? market just wanting some certainty either way. Those with direct trade links may well get hit if they leave but others should continue on as before imo

[nosnibord] 29/6/2015 09:17

typical impatient aim investor/trader moving on to the next stock to ramp.

[marvelman] 29/6/2015 08:40

Sorry to see yu go seball. Your input was valuable. Bet wishes but hope you get back in again whem you feel you can.

[cestnous] 29/6/2015 08:36

Even in the medium term, I do not expect what happens in Greece to greatly affect an Asian energy stock. It's only down a smidgen at the moment.

[hutch_pod] 29/6/2015 08:26

Crikey, fair play Seball.

[seball] 29/6/2015 08:09

Ok I was not expecting the developments with Greece over weekend so have sold out of all my holdings. Im sure the deal by Greenko board will be good but would rather be in cash until Greece is sorted. Good luck

[marvelman] 26/6/2015 11:31

Considering the steep and sudden rise of late I am pleasantly surprised at those still not selling which must be quite a few with the confidence that this is nowhere near its short term value.

[seball] 26/6/2015 10:15

Mid day RNS?

[seball] 25/6/2015 20:41

Full text......

It would appear that the board of Greenko (GKO: 55p), the Indian developer, owner and operator of clean energy projects, have been listening to their shareholders. They have now entered into discussions with two major investors to work out a compromise deal to prevent a highly dilutive share issue on the conversion (into ordinary shares) of the minority interests in Greenko Mauritius held by the Government of Singapore (GIC) (whose investment has a value of £140m), and Global Environment Emerging Markets (investment has a value of £75m).

This is clearly good news as both GIC and Global Environment Emerging Markets (GEF) have the right to convert their investments (GIC owns 17.38 per cent of Greenko Mauritius and GEF owns 14.09 per cent) into Greenko’s ordinary shares from the start of July, so this issue needs resolving as soon as possible. I discussed this important point when I last updated my view when the price was bombed out at 44p (‘Catalysts for share price moves’, 4 Jun 2015). The latest news initially sparked a 50 per cent plus rally in Greenko’s share price to a high of 68p yesterday morning, albeit it only returned the price back to the 70p price level they were trading at seven weeks ago (‘Break-out looms for mobile wonder’, 12 May 2015) before some profit taking set in yesterday afternoon.

My advice is to hold firm and await news on details of the compromise deal the company is trying to work out with these two major investors as there could be more significant share price upside in the event of an amicable resolution. That's because after factoring in a December 2015 year-end net debt figure of around $920m (£590m), an increased issued share capital of 329m shares - assuming that GEF and GIC accept conversion terms around 100p a share as I discussed in my article in May - then Greenko's enterprise value of $1.5bn (based on a share price of 100p) would still be only 8.5 times fiscal 2016 operating profit estimates and 7 times likely cash profits.

Of course a conversion price of 100p a share is well above Greenko’s current share price, but still represents a chunky discount on the 180p level the shares were priced at last summer, and more importantly the share price at the time when they made their investments in the first place. Moreover, there is no point at all for the two major shareholders to undermine the ability of Greenko's board to progress with its expansion plans as GIC and GEF are still only minority shareholders in Greenko Mauritius, owning less than a third of that subsidiary between them. Hold.

[sportbilly1976] 25/6/2015 14:04

55p proving too tempting to some still for selling, yet also a comfortable level for buyers...just can't get through that level

hopefully the buyers have deeper pockets than the sellers nominee account holdings :)

[marvelman] 25/6/2015 12:22

Thanks palaje....ludicrous to sell at these levels unless you have to as some appear to do have done the last few days after seeing a 40% increase in the value of their holdings. Its not as if the company is facinga cash crisis, far from it. They are also a sitting duck for hungry acquisitors.

[seball] 25/6/2015 12:17

Thanks Paleji. Excellent stuff. Will liqudate some other holdings to free up funds for investment here. Good luck

[paleje] 25/6/2015 12:08

ST has an article out today this is his concluding bit:-

My advice is to hold firm and await news on details of the compromise deal the company is trying to work out with these two major investors as there could be more significant share price upside in the event of an amicable resolution. That's because after factoring in a December 2015 year-end net debt figure of around $920m (£590m), an increased issued share capital of 329m shares - assuming that GEF and GIC accept conversion terms around 100p a share as I discussed in my article in May - then Greenko's enterprise value of $1.5bn (based on a share price of 100p) would still be only 8.5 times fiscal 2016 operating profit estimates and 7 times likely cash profits.

Of course a conversion price of 100p a share is well above Greenko’s current share price, but still represents a chunky discount on the 180p level the shares were priced at last summer, and more importantly the share price at the time when they made their investments in the first place. Moreover, there is no point at all for the two major shareholders to undermine the ability of Greenko's board to progress with its expansion plans as GIC and GEF are still only minority shareholders in Greenko Mauritius, owning less than a third of that subsidiary between them. Hold.

[seball] 25/6/2015 08:55

Expecting news before Wednesday. This should be 70p now before news. Patience needed. Top up on the dips. Good luck

[hutch_pod] 24/6/2015 17:24

Ok thanks Paleje.

[paleje] 24/6/2015 16:55

IC comment - don't think so Hutch. Last I saw from ST was a few weeks ago when they were 70p and he was advising people down from 100+ to still hang in and wait for the recovery which he thought would happen.

[nosnibord] 24/6/2015 15:58

Chart looks good. Will we see 80p before July 1?

[hutch_pod] 24/6/2015 15:45

Wonder if IC have commented since the RNS.