Opg Power Ventures Share Discussion Threads

[the original goldbug] 18/12/2017 15:36

As deeply frustrated as I am by the poor share price, I believe Lizard makes some very fair points.

Management can’t be blamed for the coal price. I also believe that the company can get through this without a share dilution even if the coal price holds at this level for another 12-18 months.

My apologies to those of you who were to some extent influenced by my more benign views earlier in the year.

[turbocharge] 15/12/2017 14:33

lizard, on the flip side, what are the chances of things going wrong and investors being left with big losses? What things could go wrong?

[lizardman_] 15/12/2017 11:01

Just to weigh in here, as I can see everyone is universally downbeat. I have a few comments:

1. We've known about the coal price increase for months, and that FY18 would be a write off. So not sure why the surprise and gnashing of teeth.
2. The situation will not improve until the coal price situation improves. Nobody can predict when this will occur (or how quickly), as shown by the sudden rise in prices.
3. Coal is not at a sustainable price, and it is a sector-wide problem, and not something the company can control, outside of what mitigation tactics they can perform (cost cutting/ restructure debt/ reduce shipping costs) etc.
4. Per the mitigations about, I can see evidence of these things occurring, so in that sense I am satisfied with how the company is run (and to be honest, I haven't seen any missteps yet myself).
5. The company is without a doubt massively undervalued, and a true value play. While I wish I could get an average cost of 17p, I have to be satisfied that it's quite a bit higher than that. I have 100% confidence that in time the share price will reflect a correct valuation for the company, this will probably occur in the next couple of years at the latest.

These situations are rare (I've never seen a well-operating company so heinously undervalued in the last few years), and an opportunity for savvy investors. So, personally, I shall still be happily holding for the foreseeable future.

Happy to discuss if anyone has questions.

Lizard

[andycapp1] 15/12/2017 08:13

No not really. Don’t let that put you off!! There are many other things to worry about than the IoM!!

[jackspratt] 13/12/2017 20:25

Is there anything sus about the parent company being registered in IOM?

[walbrock82] 13/12/2017 15:28

There is potential to take part in India growing energy capacity, but you can’t do it with OPG Power.

In my opinion, OPG Power is serving their lenders (with interest payment exceeding 10% of total borrowing).

Secondly, I don’t like their reporting of net cash flow by consigning interest paid to the finance section.
If you include net interest then REAL net cash flow would be £8.6m, instead of £24m.

For the record, last year real net cash flow is £17.3m, instead of £56.1m.

There are main six reasons why investors have shunned OPG Power, to read more

[turbocharge] 13/12/2017 13:12

Back to the drawing board for my investment strategy...

[igoe104] 13/12/2017 12:04

Azalea feels shareholders should phrase Gupta, even though under his leadership the share price has fallen over 80% in two years.



if the directors are that confident of the share price recovering, why aren't they buying shares at this level ?

[jeffian] 13/12/2017 10:24

I wonder what gloss azalea will try to put on these figures?!

[big jim5] 13/12/2017 09:33

Only what they are doing now

Looking to push through tariff increases to clients on the back of increases at SEBs
Source higher portion of domestic coal
Collect past receivables at Gujarat (£26m)
Reschedule debt repayments

As andycapp1 suggests, selling the solar assets would be a good idea.

[igoe104] 13/12/2017 08:56

What's the companies plan B, if coal prices remain at this level ?

Or is it, they don't have one ?

[escapetohome] 13/12/2017 08:12

The great potential of INDIA?

[tiltonboy] 13/12/2017 08:10

Witholding interest payments doesn't sound good.

[owenga] 13/12/2017 07:59

Looks like losses for the next 12 months too, based on their estimated coal price. What a complete bunch of muppets!

[jozo] 13/12/2017 07:50

Looks like the markets bracing itself!

[jozo] 13/12/2017 07:49

Very poor!

[andycapp1] 13/12/2017 07:48

Not so well sadly!! Oh dear.

[piedro] 11/12/2017 14:07

TC,
For myself the same, though I am of the opinion that the company is already doing well - hopefully that will be confirmed Wednesday

[turbocharge] 11/12/2017 13:14

I'm a holder, and no expert in company analyses; my informed hunch is that there is a reasonable chance that this company will do well in the medium to long term. Could be some potential gains at these prices. But don't don't take my word for it, DYOR!

[bsharman3] 11/12/2017 11:32

the market hates this one. I'm trying to workout if it's value or a value trap.