Opg Power Ventures Share Discussion Threads

[dave4545] 19/10/2018 12:10

274k bought today no sales.

Might be turning which is about right this level as last large director buy was at 12p ish.

[andycapp1] 19/10/2018 08:17

The trouble is it probably is hugely cheap PER of 2X etc - but no one trusts Guptaan inch now. This thing has been run so badly that it is impossible to resurrect with the current CEO and non execs (who are impotent). So yes undeniably cheap but I think the exit will be a take private/delist. And then at what price?

[ppvn] 17/10/2018 13:04

Suspect market might be waiting for confirmation in the accounts that the worst has passed?

[ppvn] 12/10/2018 13:43

Hi TurboCharge,

Depends on what you think is more important. For disclosure I bought here after the drop so I invested hoping the bottom had been reached.

OPG generates revenue in INR, presumably has costs for coal split in INR and USD since some is domestic and some imported. Wages etc I'd also assume in INR, though obviously management reported in sterling.

In June 2016 GBP fell about 20% vs. INR from then until early 2017 which would have positively affected profitability (only Gujarat was gobbling up all the cash). With a possible [brexit] deal on the cards I'd expect sterling to further rally vs. INR so possibly a little negative for their earnings (think this is what a bit of FTSE movement is about at the mo, companies generating profit in other ccy but reporting in GBP).

What I perceived to be the difference is that Gujarat has now gone and Chennai reporting on it's own (plus PV) in 6 months or so should be so much better it'll blow away any FX losses. FX moves had no positive influence on the share price in 2016 anyway.

So in a nutshell I'm very bullish (because I believe the divesture of Gujarat to be more positive than any possible negative FX moves) but I bought recently.

[turbocharge] 12/10/2018 13:11

Just wondering, given the choppy market conditions, the OPG share price being (hopefully) near the bottom, and the recent purchases by the FC, that we might actually be in a better position that holding UK shares?

Just speculating, I could be wrong, I'm no pundit. But the fleeting thought of buying some more did cross my mind...

[dave4545] 05/10/2018 13:49

PER of 2 wow, not another one lol

Think we are seeing the Friday afternoon lull and profit taking, somebody sold a chunk below the 13p bid so it might drift a little but I can see any drop getting strong support now the directors have piled in.

[ppvn] 05/10/2018 10:39

I am assuming they announced the move to 6 monthly reporting to allow some cash to build and hopefully demonstrate they have turned the corner with the next interims.

Find it hard to believe this won't be in the mid 20s at least either when that happens or perhaps before.

[andycapp1] 04/10/2018 20:56

No current FD is quite sane. It’s just the lack of articulation of a plan for the cash. The FCF yield is huge yet mkt worries the dolt is going to reinvest it. If it was clear he isn’t then 35p v quickly. Still a disaster mind but better than 13p.

[ppvn] 04/10/2018 18:26

We still don't know who it was that dropped over half a million quid buying 4.9mm either. I do think there will be an RNS on that.

[turbocharge] 04/10/2018 18:14

Seems like we're making progress, from halfwit to quarter-wit, to the current one-eight-wit perhaps?

[andycapp1] 04/10/2018 16:54

Ah him. He was a halfwit. Mind the you previous FD was a quarter wit.

[oldboffy1] 04/10/2018 16:50

andycapp. You know what the problem was --- it was the smooth talking Ajay Paliwal. I believed him and didn't take note of some of the wiser counsel!

[andycapp1] 04/10/2018 16:46

Partial sufferer ha! I'm a full blown, cornucopia of suffering chap. You are a mere stripling in the OPG suffering stakes. I've been fully Gupta'd whereas you have only been partially Gupta'd. I've also been exposed to the idiotic ramblings of our resident OPG fairy Azalea with his inane witterings over the years, all the way down,if memory serves,from 110p. He will be devastated to see the back of the boats as it was the boats that were somehow going to hedge OPG's coal costs for evermore. But great to hear from you and maybe your ramblings on here will encourage the shares to go up. They are v cheap!

[oldboffy1] 04/10/2018 16:27

As a LTH (and a partial sufferer)I agree with the thoughts being expressed. I cannot see how the share price can remain at the current level for long. I would imagine that so many people became fed up and have ceased to follow the share. The appointment of the new FD coupled with the kitchen sinking in LY's accounts and the Director buys is all positive. As they all say IMHO.

[ppvn] 04/10/2018 16:11

Well they did up the share buyback permission to 15% for approval at the AGM so could be the next masterplan. "1p scrip dividend" (aka bonus issue) I thought interesting. They obviously have precious little cash on hand after paying off the boats, Gujarat, assorted other legacy write-offs but coupled with Mr 51% then not having to buy back his own shares could theoretically cheapen a bid at taking private if they chose to exercise the 15% next year.

In any case, I still think the share price should have gone up rather than down with the latest announcement and think it shouldn't be long until it's reflected, at least partially.

[andycapp1] 04/10/2018 15:26

The cash is prodigious however, they just need to articulate, as has Drax, what they are going to do with it - and for God's sake don't reinvest it!! So pay out 80% of free cash after debt repayment and interest and sell solar for the equity value - 5p odd - when they can as it has lock ups and I daresay the shares will be 35p before you can blink. Alternatively reserve half the cash for buy backs - at 13p odd that is a no brainer and pay out the rest as a divi. If they would just articulate and execute on a plan they might get a better rating. But they just seem unable. It aint difficult boys, really it isn't!!

[ppvn] 04/10/2018 13:48

Very fair comment! Luckily Chennai has a pretty decent track record and that's just about the only thing they have left!

All they need to do imo is what they've said. Pay off the debt, don't screw anything up, and just let the cash pile in.

[andycapp1] 04/10/2018 13:35

Agreed. It is mesmerisingly cheap but it’s track record is utter sh1te. But v cheap!!

[ppvn] 04/10/2018 12:43

Seems like they really went for it in the accounts. Even the shipping business gone.

Things should definitely look significantly better soon. Lots of holes plugged.

[andycapp1] 04/10/2018 12:01

Golly flowerpothead intrigue!!

[azalea] 03/10/2018 17:24

There is definitely something afoot here, two major purchases by directors in the same week; is no coincidence. It could simply be that the board sees the share price as being very cheap when viewed against a positive future for the company in the medium term. Or, it could be something that could be realised in the near term.

[dave4545] 03/10/2018 16:00

Another director buy at 12.05p to round his holding up to 1 million

[ppvn] 03/10/2018 12:00

SP went the wrong way on the recent RNS. Aware that I keep banging on about the same old thing but with Gujarat now gone it's only the cash flows of Chennai that this co has, plus the PV business (that doesn't do much).

Unless management do something silly and chuck the profits in a different pit, as a standalone it's got decent cash flow, excellent profitability and 3 year contracts that keep getting renewed. Stick the numbers in and see where the share price should be. Way to go yet imo, but won't have confirmation until the next set of numbers come in.