Opg Power Ventures Share Discussion Threads

[ppvn] 27/6/2019 15:19

Bought a few more here. FY numbers due relatively soon and it'll be their first clean set since gujarat went in the bin.

The company have been clear with their guidance that it's going to be £35-40mm ebitda, on a market cap of £60mm it's far too cheap here even with Gupta.

If it continues languishing it'll be minimum a 10% yield year in year out and growing so I don't really see a downside either way.

[jozo] 27/6/2019 14:34

Pantstastic - love it!

[andycapp1] 27/6/2019 13:22

It’s an invention they copied from the yanks. They have worn partially coal fired pants for years; the Chinese have refined the idea to 100% coal fired save for the crotchal region where it’s asbestos. Part of the reason Trump is imposing sanctions. The whole thing is pants.

[turbocharge] 27/6/2019 12:14

The Chinese must have a strong constitution to want to wear coal fired pants!

[azalea] 26/6/2019 08:47

BBC News reports after years of weaning itself off coal fired electricity generating plants, China has returned to building new coal fired plants.

[russiaguru] 21/6/2019 17:13

Andy,- that statement is true regarding most of aim. Here at least they are profitable, somewhat low risk business model with coal hedges and debt reduction.

Poor bod but slowly turning round.

[andycapp1] 21/6/2019 08:11

Well if you can get em at 15 then good luck. Issue with this is Gupta as I’ve said repeatedly for years. I am just not sure he understands or wants to understand what OPG is here to do? He seems to think it’s his own personal feifdom, some sort of bedraggled legacy for his kids. It has been a perennial disaster which says one thing and does another. There is no clear strategy or long term alignment of shareholder and corporate interests and that is why there is absolutely no institutional trust at all even on a supposed 30% free cash yield; nada interest. Everyone knows that EBITDA is £40m odd and PBT £25m odd but no interest. Why? Because of Gupta. He is dreadful.

[russiaguru] 20/6/2019 22:29

Andy - no but the market is doing it for me. 15 -> 30 is a risk worth taking

[andycapp1] 20/6/2019 22:08

Oh really you can finesse it that accurately!! I don’t think so.

[russiaguru] 20/6/2019 19:17

Get closer to 15p

[andycapp1] 20/6/2019 19:12

Not sure they have a strategy! Gupta is absolutely useless although the FD is sensible. They just need to articulate a sensible strategy to return cash.

[jinvest1] 20/6/2019 14:32

Hallelujiah rain! hxxps://www.indiatoday.in/india/story/chennai-rain-tamil-nadu-water-crisis-imd-1552766-2019-06-20

At present I don't mind their strategy.. pay down debt, pay a decent dividend and build up a solid base to launch expansion down the line. It's so undervalued at present this really seems like a fantastic value play before what will be (I'm well informed) the early July results - which have essentially been confirmed to be on forecast in previous updates. A long-term plan would be nice (e.g. expansion at Chennai vs. a new plant?) but then again, maybe it is too soon after Gujurat for them to start speculating on that.

[andycapp1] 20/6/2019 12:20

Good grief this thing is remorseless. I simply don’t understand why they don’t outline a clear strategy...that doesn’t include reinvestment!!

[jinvest1] 19/6/2019 23:01

Hi PPVN, thanks for your response that's good to know. I found this interesting section[1] on their water system which seems rather advanced with regular water level checking and the ability to recycle used water back into their stores. I was also worried about reduced customer demand, but I didn't realise the majority of their customers are captive industrial/utilities providers who will (most likely/ hopefully) have their water needs covered. All good! Thanks for helping to settle my nerves. Maybe even a top-up opportunity if this news pushes the price even lower. Also, I saw they have released their full results as early as June/July in years gone by so a July release date, as previous mentioned, could be a distinct possibility. The sooner the better I say as I'm quite overweight here...

[ppvn] 19/6/2019 18:21

Hi jinvest,

They also designed the plant to be air cooled so their water usage is actually quite small - 90% down on the equivalent output plant that uses water cooling. More details can be found here:

[jinvest1] 19/6/2019 14:58

hxxps://www.aljazeera.com/amp/news/2019/06/water-crisis-grips-india-chennai-190619092131816.html

Not good... implications for the plant? I guess if they run out of water they would have to temporarily shut down. But I saw they have their own local bore hole supply and I presume would be prioritised in terms of the city water supply.

[andycapp1] 17/6/2019 11:43

Hey Flowerpothead, another inanity. See you haven’t lost your touch. Are you thick, stupid or is there another affliction of which we should be aware?

[jinvest1] 13/6/2019 11:11

One irritating thing about the 30p LTIP is it gives them little incentive to increase the div above the forecast 1.2p. At 1.2p div, 30p share price is a 4% div yield. If they'd been a little more ambitious and set a LTIP of 35-40p this could, most likely, be easily achieved with a div of 1.6p. As I guess after the results the short term (until Nov at least) price will be determined primary by the div yield, so I hope they give a little higher than the 1.2p forcast.

[azalea] 13/6/2019 08:21

Indian billionaire Adani, gets approval for his coal mining project in Australia.

[oldboffy1] 11/6/2019 14:24

Agreed andycapp1 but things have changed and are continuing to change with Dmitri on board.

[andycapp1] 11/6/2019 11:54

You are right but five years of ill fated strategy execution is a tad tedious!

[turbocharge] 11/6/2019 10:12

I, for one, am slowly understanding the benefits of being a more patient investor. Happy to hold and wait, maybe even top up if the price dips further. Long term story looks positive....

[ppvn] 11/6/2019 10:08

Funnily enough Andy, I don't mind this one drifting. I personally just view it as a safe bet since Gujarat got deconsolidated. It's not exciting, it's not cutting edge, but it makes packets of money and it should comfortably double from here when FY results are out.

I appreciate that my investment here haven't been as long term but I'm personally confident that since the bottom at the end of last year that OPG are now in an uptrend which should last until they are debt free at which point they can just be a cash cow.

People get bored of illiquid companies and they drift. It's more an opportunity rather than a frustration?

[beangrinder] 11/6/2019 10:06

Patience Andy! The recent Shares presentation from the CFO made the extreme value case very clearly and simply. If we're getting the truth from the board then a re-rating will occur this year. It's very clear that paying down debt is the priority but I agree a statement on cash dividends would be greatly helpful.Volume traded is currently v low.

[andycapp1] 11/6/2019 09:51

And down it drifts, utterly unloved. Aaargh the execs are so utterly utterly useless.