Opg Power Ventures Share Discussion Threads

[beangrinder] 22/6/2021 19:55

It's unhelpful that the update today only mentions total debt. The Dec20 update refers to net debt which was £18.9m. We won't know net debt now until full year results are published. The receipt after March 21 of £5.7m of old debt must help but we have no idea what the last quarter underlying cash flow looks like. Only guidance is that forecast eps is in line with actual trading.

[jailbird] 22/6/2021 19:37

HmmmWell spotted Timbob

[timbob2000] 22/6/2021 19:11

Overall debt has reduced by £8.2 million, however working capital loans have increased from £1.4 million at 30 Sept 2020 to £6.5 million at end 31 March 2021. Would be interested to know why.

[beangrinder] 22/6/2021 13:53

I rate the CFO and am ambivalent about Gupta. Andycapp has been consistently critical of Gupta and it's easy to see why but I've been invested for years and know events haven't been kind to him. My view is that the company only needs to clear debt and run the coal plant to justify a much higher share price. The concern is that they think they need to do more...! Such is the story of corporate management many times over.

[altras] 22/6/2021 13:13

@Andycapp1...
Can you give a few examples of Gupta's bad decision and flaunting corporate governance?
I know a little about the ship debacle which was possibly ok idea except that due diligence and execution seem to have been by words for that project!


@beangrinder @dave4545...
What are your views on Gupta?

[beangrinder] 22/6/2021 12:34

I think we can stop looking at this one for another 6 months now. Maybe 2022 earnings will increase with slower implementation of environmental measures, less concentrated shutdown etc. Debt reduction continues steadily meanwhile and some cash dividend income will come in. On balance the risk of this investment is much lower than a year or two ago and it should be worth Edison's 42p...but when!

[jailbird] 22/6/2021 08:32

yes anywhere

[dave4545] 22/6/2021 08:11

Always thought this one had run away from me, last time I looked it was up to 18-20p range so to get a quote low 14's when it's hitting their forecasts, slashing their debt still, and collected over £6 mil in one go from one customer I'm happy with that.
Must have been a overhang prior to today.

[dave4545] 22/6/2021 07:36

Did you mean anywhere ?

They still keep delivering though. Hitting their forecasts.

And especially given what has happened in India that is impressive.

[jailbird] 22/6/2021 07:29

TU out

Not going anyway this year..maybe next year

[andycapp1] 18/6/2021 10:02

It is run (and majority owned) by an unaccountable loonball. And what institution wants to own coal? At some point - 3x EBITDA? - it’ll be worth buying as the loonball starts paying himself wads of dividend as the thing remains v cash generative under normal conditions. But unless he embraces proper corp governance, the Gupta discount will remain huge as will ownership of coal.

[tole] 16/6/2021 15:14

Bought a few back today.

[andycapp1] 28/5/2021 18:32

Are they beginning to discount Gupta apocalypse? Probably not. He’s so unutterably useless that I might give 10p for them?

[elsa7878] 25/4/2021 20:41

I'd sell if I was you and buy back cheaper. Last half year they made about 0 without the payment by the long time debtor. Can you imagine what the next 6 months will be like with figures suggesting 500,000 new COVID cases a day in India.
Not a shareholder and never have been......

[mikro1] 25/4/2021 19:46

I agree short term outlook looks poor. Medium term looks good. I’ve held for a year and probably will hold for another year..

[jozo] 23/4/2021 10:54

Hi Rivaldo,

Agree it’s a very concerning story in India just now.
It’s also really difficult to see how the short term will play out with Modi determined to keep everything going. I do think however, that plans to close state borders will not impact Opg too much.
Also seems that Chennai is not one of the hotspots (see link below), so with state borders closed I wonder if the local economies will continue as normal with little or no effect on opg

[rivaldo] 23/4/2021 10:33

I've been selling recently and am now out due to (1) needing cash for other stocks (!), but (2) also due to the terrible situation re the pandemic in India, which seems to be getting worse and worse. Tamil Nadu is under partial curfew already, so I can see a drifting/moribund share price for a while with catalysts for upside maybe pushed to the right. At least I was able to benefit from the recent rebound.

Good luck all - I may of course be completely wrong so hope to be back at a later point as in better conditions I can certainly see the upside.

[jeffian] 13/4/2021 22:52

OK, I stand corrected but even back then the yield was still around 3% (and only then because the share price had fallen substantially). Hardly "spectacularly good". I doubt that anyone seriously regards this as an "income share". At least, not yet.

[stur7672] 13/4/2021 21:24

OPG (AIM: OPG), the developer and operator of power generation plants in India, announces that its maiden dividend, an interim dividend of 0.26p per share, will be paid on 16 February 2017 to shareholders. A scrip alternative was also offered. Ps if I remember correctly there was an issue and payment was delayed I think they also paid a final dividend in cash that year with scrip option.

[the original goldbug] 13/4/2021 15:13

Yea it’s hard to say well done just yet given the £100m write off at Gujarat and the fact that despite the book value write down the stock trades at a 50% discount to book value.

Still that’s not to say it is attractively prices at the juncture though I struggle to see why it will ever rerate above book.

It will be a small triumph if it trades at book IMO.

[jeffian] 13/4/2021 14:54

I'm not really following that. OPG has never paid out a (cash) dividend in their life. The last scrip dividend (share issue) was equivalent to 3.3% yield at the time of issue. Of course, scrip issues feel good on a rising share price, but not so good when it falls. Either way, I'm not sure I've had anything yet from OPG which is "spectacularly good".

[fillipe] 13/4/2021 14:31

I may take a better view on sight of the year to 3/21 results and in the dividend.

I seem to recollect having received some spectacularly good div payments in the periods of a few years ago.

Consensus forecasts 3/21 are for a div of 1.1p and some might take the view of this as an income share, in which case if an income rate of say 4.5% was sought, then the share price would back-calculate to 24.4p.

Arguably if that became reality and there was also the likelihood of a worthwhile eps, then 24p would soon be left behind.

f