Opg Power Ventures Share Discussion Threads

[haroldthegreat] 09/9/2021 10:50

How is the solar power doing ? What is the return on the capital cost ?

[the original goldbug] 09/9/2021 10:46

I thought Chennai was built 10 years ago so even then it would suggest 30 years of depreciation still to run.

I haven’t looked at the accounts recently but I think you probably have it in reverse, in that plant life is 40 years plus while the depreciation policy is 20 years.

[dave4545] 09/9/2021 10:31

Net debt was down to £35 mil last report

So at worst case 10 years left of strong earnings they would still clear the debt in 2 years and end up with a massive cash pile say 2-3 times current market cap

Long time to wait for it though but that is worse case scenario

[jeffian] 09/9/2021 10:16

Depreciation is merely a financial management tool to make sure the balance sheet isn't bloated with 'asset value' when that is merely original cost. All companies state their depreciation policies for the assets they acquire - buildings, vehicles, plant, machinery etc - but that doesn't mean they expect them to be a write-off after the cost is paid down. Your house is a 'depreciating asset' (in the sense that over the long term it needs constant investment and renewal to maintain) but that doesn't mean it's worthless after you've paid off the mortgage!

[altras] 09/9/2021 00:35

Saw the below post on the LSE forum. Anyone here think this is of concern?
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Interesting article on BBC news website published in March this year -

In OPG's 2020 final results they state that in calculating depreciation of assets they use a lifespan of 40 years for power stations.

So if you believe the article, Chennai has only 10 year economic lifespan remaining. Perhaps current share price is not as bonkers as it looks?

[dave4545] 07/9/2021 11:30

200k buy on Aqse 12.35p so mm has sold a chunk of that on for £600 profit

[dave4545] 03/9/2021 23:00

557k sale first thing at 12.05p when 12.5-13.5p

Personally think they are giving them away at this level

[the millipede] 03/9/2021 13:12

hxxps://www.stockopedia.com/articles/does-the-opg-power-ventures-share-price-make-it-a-stock-for-contrarians-238474/

FWIW

[andycapp1] 26/8/2021 13:41

Really is an abysmal chart, if you’re in to charts!

[dave4545] 09/8/2021 15:32

Somebody sells for 13.11p when it's 13.88p offer

[stur7672] 02/8/2021 12:53

https://www.crisil.com/en/home/newsroom/press-releases/2021/07/power-demand-to-grow-over-5percent-this-fiscal-a-three-year-high.html?mkt_tok=MDEyLUJWWi0zMTgAAAF-pZ6eeq66aGSae6UDjSYHci7O4s20wWu2wuEO6QPNBCdjgXgUmw4_ixPsezfRXStvxRpHA_cD_GDP-3Fkf_8K1XYLFqEloqX3SFfJTXg#

[dave4545] 02/8/2021 12:28

So who is pumping it then ?

[bigberty99] 02/8/2021 12:21

Dave it's a pump n dump operation there is no news

[dave4545] 02/8/2021 11:32

Relentless buying this is great.

We all know it's worth way more but I have loads of stocks worth way more but getting them to trade there and getting people to buy them is a different story.

[nathandc] 02/8/2021 10:28

Fundamentals are still there Term loans being repaid Long term growth forecast Existing contracts C19 has effected this share: Shipping and Coal prices increased Demand down from business Re-rating to 20 + could happen very swiftlyDYOR GLA

[dave4545] 02/8/2021 08:45

Looks like a lot of people were waiting for signs of life and a bounce on the chart and they are getting stuck in.

That 12.1p offer last week looks inviting now eh

[andycapp1] 24/7/2021 10:36

It’s not when you take into account who runs it!

[dave4545] 15/7/2021 13:27

Jeez that current chart is evil and I always think of OPG as terrific value

[andycapp1] 15/7/2021 09:01

Agree utter value trap.

[andycapp1] 15/7/2021 09:00

Coal burning company and one that is run completely at whim of CEO who’s family are majority equity. Therefore us (minority) have few real rights and impotent NEDs happy to take Gupta’s coin to behave and shut up. Who kn Earth would want equity in that…at any price that unless you think the buffoon will take it private. Which he might if anyone would trust him with the loans?!

[source] 14/7/2021 16:42

Terribly run company this...Forever jam tomorrow too.

Needs to delist as its a value trap many should avoid.

[timbob2000] 14/7/2021 16:36

Agreed Chalky, we're talking about a company making good money and reducing debt. Sure we have some headwinds, cost of coal, plus effect of covid but overall OPG are and have been heading in the right direction for some time now.

Plenty of companies out there making big losses year on year and with increasing debt levels, yet valuations are far higher than OPG.

My only explanation for the lack of interest from the market is because we're talking about a coal burning company.

[chalky] 14/7/2021 15:30

At this level I would have thought management would consider a buyout the valuation is a pittance I've seen companies4 times this valuation with hardly any turnover and permanently in losses. What do I know?

[andycapp1] 06/7/2021 09:21

How low is a low PER? Look the only attraction with this is return of huge wads of cash and fir this, as with all things OPG, you are utterly reliant on the largesse of the Gupta man. If he wants to sprinkle rupees then he’ll do it. Coal is a pariah and no institution wants it no matter how much cash, how low the EBITDA/PER ratios. It’s all about cash to motivate a buyer and in that regard Gupta will do a deal to take it private to keep it all for himself (I suspect). So wouldn’t touch now with bargepole. I’ve learnt my lesson with him.