Opg Power Ventures Share Discussion Threads

[turbocharge] 05/9/2017 13:19

Has OPG's 45.0 Million investment in the four solar projects started generating cash flow yet (as promised in their 05/07/2016 news bulletin)?

[azalea] 05/9/2017 13:01

smithless

I have done my legwork with the aid of Morningstar data and OPG website latest holdings.
Between 1/6/2016 and 30/12/2016 The change in major holdings from six to five, appears to be down to Sanlam Four Inv UK limited, whom are no longer being shown holding 3.11%. All, the other major holders are the same, with Hargreaves up 0.27% @ 3.4%. Total holdings of 74.8%.

My copy, dated 13/11/2014 of Morningstars data for major holdings, shows six. Two of whom -Four Capital Partners 4.94% and Legal and General holding 4.59%; no longer shown in 1/6/2016; whereas Hargreaves appeared with 3.13%.

Of course it does not mean that those who are no longer shown as major holders sold their complete holding. I have not found any news on events marking the changes in the latter two holdings.

[smithless] 05/9/2017 11:21

azalea - TR-1's have never been OPG's strong point. Last one issued 18th June 2014! I will let you do the leg work, but as a pointer look at the annual report for FY2015 of holders with 3% or more. Then go to the last time it updated its website with 3% or more (30th December 2016). You will see names have disappeared and one added - why no TR-1's?

[azalea] 05/9/2017 10:36

Polythene -506
An honest and frank post, which I respect you for making. I wish you the best of luck in any and all future investments. My current modest holding is making a notable paper loss. However, I expect to see that change in FY 2019.

Meanwhile I await with interest to get a reply from smithless, with answers to my questions, post-3504.

[andycapp1] 05/9/2017 10:26

Azalea the share price is telling you that! The capital structure or EV is now 75% debt and 25% equity so palpably unbalanced. That alone flashes warning signals. Their earnings cover is poor if the 1p is to be believed whilst if I were a bank the EBIDA or cash cover is imponderable given coal prices that unless they have panic hedged to at least lock in enough cash cover for the loans and the poor equity holders be damned - actually rightly so if they don't have comfortably enough headroom on the loans! So self evidently all is not well but we are looking at it from the outside and from the inside, with full knowledge of the loan covenants and cashflows, things may be better (or worse). We don't know. At least, Azalea, you are right in saying that we will know more in September, at least enough to know whether they are really in the poo or else that things are being managed to get them through this "hump" as you call it. In all other regards Azalea you continue to demonstrate little understanding of anything frankly!

[polythene] 05/9/2017 10:04

You continue to miss the point Azalea. From an investment point of view if a company's share price falls and continues to fall that company is failing its shareholders (I know you are still in profit, you have traded and bought and sold and you are happy with your average). Anyway, I sold most in the low 50s but sold my last 45k in low 30s last week. A failed investment from my point of view. Good luck all.

[andycapp1] 05/9/2017 09:56

Smith less I think that succinctly sums up the whole mess. Well, far better than I could sum it up!! Down another 6% today and careering towards oblivion. So we will see!

[azalea] 05/9/2017 09:54

smithless
Which institutions have sold out their holdings in OPG and when did they do so?

Please explain the numbers which makes you believe on one hand that he has put the entire group at risk of insolvency and on the other hand, how it can be fixed by someone other than Mr Gupta.

[smithless] 05/9/2017 09:33

Azalea - Gupta may be a able person when bringing together project finance and build out, but at an operational level he's terrible. Generating revenue is easy, consistently generating free cash flow isn't. Under his leadership, he has put the entire Group at risk of insolvency and has paid himself handsomely for doing so. As pointed out the NED are just puppets and won't stand up to the Gupta's. Institutional investors (those that remain) are walking away. This stock should be a boring cash generator, but it become a roulette stock and this is purely down to Gupta's lack of leadership. He has virtually wiped out shareholders value and has to juggle £250m+ of debt. I should just bail out of my remaining holding and I would if I though it was unfixable. I can be fixed, it just needs better heads at the top.

[andycapp1] 05/9/2017 08:42

Azalea you seem to have little or no understanding of share price drivers, capital structures or for that matter anything apart from a seemingly blind faith that Mr Gupta will sort. I've never met Gupta but I'm sure he's a lovely Indian chap and I hope that he will pull the proverbial finger out his bottom and make more of an effort to understand what he is trying to achieve. Then work out how he can achieve it and what conventions he might follow over here in order to reestablish OPGs credentials for investment. Maybe he needs to take a long look at himself?

[andycapp1] 05/9/2017 08:35

Fair points but you can hedge the Indonesian index and indeed other indices form a perfectly reasonable proxy. Yes the capital mkts were too generous but I think back over several years, the move to Exec chairman was terrible, the solar strategy is clearly flawed and the NEDs are weak and inexperienced. Added to that is the general over promising and under delivering and now this. Result no institution will touch it with a barge pole and indeed there are several sellers. I'm delighted to hear you you enjoyed chennai but the fact is without substantial change in management this share will make little if any progress.

[azalea] 05/9/2017 08:28

TOG
Thank you for your interesting post. I particularly agree with the last sentence in your last para. I note your being a guest of Mr Gupta.
It is my view that a number of the personal attacks on the company are carried out by posters who either no longer hold shares in OPG,or in several cases never have. These type of individuals are not uncommon on ADVFN threads. I caught out one poster who claimed that he sold shares in one company (CEY)and invested the proceeds in Highland Gold, buying at a price that I proved with the help of data provided by Morningstar, was not possible. That shut him up. I have filtered more people on the OPG thread, than on any other company, circa 80% have never returned.

A number of set backs experience by OPG have been beyond the control of the BoD, despite which they have achieved a generating capacity of 750MW. That said, I am certain that MR Gupta with his 50%+ holding is acutely aware of the dramatic fall in the share price and is taking all steps possible to improve that situation. The results on the 25/9, will make interesting reading.

Over the years I have been invested in OPG I have been 'in the money' for most of them and have taken profits on several occasions. Electricity is the lifeblood of India and that is not going to change. Circa 18,000 villages were reported last year of never having the luxury of electricity.

[turbocharge] 04/9/2017 21:29

"A plum preserved by drying and having a black, wrinkled appearance"
or
"An unpleasant or disagreeable person"

Example: ‘Even pathetic old prunes have their moment in the glare of the gossip mags’

[andycapp1] 04/9/2017 18:23

And the share price has fallen by 75% since 2015. Hmm wither better earnings pothead! You really are an utter prat!

[azalea] 04/9/2017 17:43

The horrors that await; are you sure you hold shares in OPG. FY 2019, your horrors should melt away. Four successive years of rising Eps, with capacity rising to 750MW, deserves a bonus.

[andycapp1] 04/9/2017 17:14

I'm sure his bonus is linked to several factors, I hope share price being one of them although it seems not! Anyway that's not the issue. His basic salary is way too high for a company of this EV/mkt cap. An AIM listed company of around £200m in this industry would pay the CEO around £200-300k. So his basic is far too high. I wonder if he will take a bonus this year given the horrors that await and the disastrous share price performance!!

[igoe104] 04/9/2017 17:12

Azalea do you think the gupta, should get another bonus for his performance this year ?

[azalea] 04/9/2017 16:59

Eps

FY 2014 4.1p (up 71%)
FY 2015 4.9p (up 18.6%)
FY 2016 5.29p (up 8%)

[igoe104] 04/9/2017 15:37

£750K salary, 600k bonus, £1,350 altogether.


What did he get the £600k bonus for ?

it certainly wasn't for creating shareholder value.

you should only get a bonus if the share price is rising and holders are happy.

[andycapp1] 04/9/2017 15:13

Really didn't know that. That's way above mkt for a company of this mkt cap. £150k to £200k is nearer the mark.

[igoe104] 04/9/2017 14:14

Smithless cheers, I've sent my email.

From what I can hear gupta get paid £1.3 million, for loosing shareholder value.
surely someone can do a better job, for 1/4 of that salary ?

Not good enough.

[smithless] 04/9/2017 14:00

Call OPG's strategy director/PR man Ajay Paliwal or email him. Perhaps if enough of us express our reservations and that Gupta should stand down as CEO (a nice independent industry veteran would do), he may get on the phone to the big chief and say the shareholders are revolting...

[phone] email [e-mail]

[igoe104] 04/9/2017 13:34

What type EXECUTIVE CHAIRMAN doesn't forward hedge, and practically gambles because he thinks he knows the market better than anyone else. Electricity companies are not supposed to be run like this?

How are we ever going to get any credibility with this bunch, running the company.