Opg Power Ventures Share Discussion Threads

[andycapp1] 03/12/2019 17:01

That’s your bounce over. Now the drift back down again! Why? Because no one trusts Gupta!!

[rivaldo] 02/12/2019 15:48

..and another one just now, along with a further 50k.

[rivaldo] 02/12/2019 10:00

Nice 100,000 buy at 20p this morning.

[thebradski007] 01/12/2019 09:00

Don't think there any many shares around, I struggled to get small amount :0) Was in these a long time ago at around 80p but sold out at about 60p. Looks to good value now with the debt lowering. Think the market will wake up soon and see the potential upside from here forwards. GLA

[andycapp1] 29/11/2019 19:12

Grows on trees!!

[turbocharge] 29/11/2019 16:41

Guptaland, where money is easy to come by.... :)

[andycapp1] 29/11/2019 13:02

Where you off to?

[abarclay] 29/11/2019 08:57

We are off

[rivaldo] 29/11/2019 08:56

Moving up nicely again on £30k of trades so far. Hopefully this means there's not many shares around.

[andycapp1] 28/11/2019 23:16

Good for you. If I were you I’d hold and see where Gupta takes you. The FD is fine and the non execs utterly ineffectual but it’s probably going to go up some more. If you get to all square get out and buy a good emerging mkts IT. I bought a chunk of the Jupiter Frontiers Trust a few weeks back.

[onjohn] 28/11/2019 18:08

andycapp128 Nov '19 - 17:13 - 5310 of 5311
0 0 0
He can’t afford it. He created any equity he has through the float



Yes but the equity has paid for company assets which generate cash

The banks would be willing to lend him the money to buy minority imho

He also only needs to find 48% of the money as he has 52% already

[markdallara] 28/11/2019 17:25

Please keep posting AC1. I find some of your comments of interest. Holder only half as much down this evening as yesterday.

[andycapp1] 28/11/2019 17:13

He can’t afford it. He created any equity he has through the float

[igoe104] 28/11/2019 17:04

Andy why continue to post when your not even a shareholder, save your energy for the stocks you hold ?

[onjohn] 28/11/2019 16:53

Gupta could bid, have the whole cash flow for himself

[andycapp1] 28/11/2019 16:49

They can’t because Gupta and family control the company owning 52% of the equity. And no a bid isn’t coming, calm down dear.

[onjohn] 28/11/2019 16:25

bid coming at long last

[qs99] 28/11/2019 16:22

Then surely city should help get rid of management and replace with those that can deliver no?

[andycapp1] 28/11/2019 14:55

No I haven’t missed your point to reducing debt. Coal values are low because of the lack of transparency of coal prices allied to volatility in PPA prices. They are also polluting and have, in the long run, high short run marginal cost v renewables. So 5x EV/EBITDA is probably right which obviously takes account of debt. So I agree tops this thing is probably worth north of 40p but it won’t get there because it is not well run and continues to display poor corp governance.

[dave4545] 28/11/2019 14:50

I'm doing a crowdfunding for the person who sold last week or was it week before at 13.75p when 15p bid

Must be painful.

Should get over 20p tomorrow or next week

[rivaldo] 28/11/2019 14:48

Great summaries thirty fifty twenty, thanks.

Looking strong here. Hopefully might even pick up a little tipster activity. SCSW last commented on OPG in May'18 - they might update soon.

[andycapp1] 28/11/2019 13:15

Goldbug, you followed this for years and your analysis is pretty much spot on!! The discount is thoroughly deserved!!

[thirty fifty twenty] 28/11/2019 12:24

Hi Andy - I have tried to highlight the +ve's and the risks. My broad point was that the power plant is worth a lot more as part of a multi national power owning conglomerate that it will be ever be valued at on the stock market, so at all time Gupta has the option to sell the power plant at a large premium to the valuation on the stock market. this possibility gives some floor to the share price.

I think you also miss my point re the benefits of reducing debt.
the price today is a rating of profits - a very low rating because of the concerns some investors have. even if this rating does not change … the value of the equity increases as CASH flow reduces debt - that is just the mathematics of it.
For the price 'not to rise' would require a continual de-rating of the company every year - this doesn't seem like a logic thought process to me.

for me, the concerns that others have re Gupta and Corporate Governance relate to issues about the PLC. The actual asset, the power station, was built to budget, is very profitable and generates CASH. The issue with the other power plant was to do with structural inefficiencies in India which affected all operators. It is reasonable to conclude that Gupta and team lacked skill to start a project there but they also must be credited with building a second , and very successful Power Station. Their current stated intention is to reduce debt - which I think is a very sensible strategy and will increase shareholder value. I understand fully the arguments about an over paid CEO with little skills etc... and whilst I can comprehend the arguments that he is inadequate, I don't think the company has told untruths. Thus as long as they keep paying down debt , I am a happy holder.

All IMHO, DYOR + BoL
OPG is in my top 5 hldgs

[beangrinder] 28/11/2019 12:18

AndyWhen debt is clear in 2-3 years price would be 45-50p on just 5 x EBITDA.Do you reckon the management discount will be less by then?

[andycapp1] 28/11/2019 11:27

You won’t get 10x EBITDA for coal, not even close. Maybe 5x depending on security of offtake and so maybe 35p odd to equity. It’s superficially cheap but its track record, awful corp governance and Gupta’s inadequacies as CEO mean a substantial discount is still warranted.