Opg Power Ventures Share Discussion Threads

[dave4545] 14/11/2024 09:57

impatience

[igoe104] 14/11/2024 09:49

Don't understand some folks. Someone has sold 100k in shares afew weeks away what will probably eye catching results. Very odd 🤷

I wonder whats between some folks ears sometimes...

[tim000] 13/11/2024 10:49

You say it nearly trades on a P/E of 2, but the interesting question is what is OPG’s most appropriate measure of profits? I’m not sure there’s a single conclusive answer to that. The company highlights EBITDA, but it does pay a lot of interest and tax. I don’t care about depreciation, that’s just an accounting concept not particularly relevant to a long-life power generating asset. It’s certainly a highly cash generating business in a country with rapid growth in power demand. My view is that if/when they decide to return a high proportion of FCF to shareholders, the share price will indeed rocket. But possibly not before then and the next annual results are about ten months away. It’s then that the company will review its capital allocation policy.

[igoe104] 13/11/2024 10:25

Sod it ive added another very small amount.

Come on boys you know it makes sense, we all got a spare grand to stick in...

[dave4545] 13/11/2024 10:19

Bear market for penny stocks.

No investors left, all day traders and they want momentum.

So how can you get momentum if nobody will buy the value and spike it in the first place.

And yes I still hold here

Results day will probably be the catalyst but that tends to only last 24 hours as all traders buy then sell out again

[igoe104] 13/11/2024 09:59

These are nearly on a P/E 2, if forecasts are meet, but all im seeing is small sells, am I missing something, because these look unbelievably cheap. Probably the cheapest share around..

[rivaldo] 12/11/2024 14:07

As a small-ish holder of CYAN (from around 7.8p), with a larger holding in OPG, that's imo an invalid comparison. It's apples and pears - one company is long-established, highly profitable and cash-generative, the other is highly promising and just on the cusp of break-even with a fast growth path to high profitabiliy IF all goes well.

The two are valued on completely diferent bases. If CYAN were a non revenue-generating start-up your point would be valid, but it has its own virtues and attractions given its current state of upturn.

Let's concentrate on OPG's own undervaluation first!

[dave4545] 08/11/2024 16:24

Cyan has a lot of business in India.

Market cap same as OPG ...losses millions and burns through cash

[rivaldo] 05/11/2024 11:04

All OPG need to do imo to get the share price moving is to continue as they are - if they can continue to produce improving EPS/profits and a growing cash pile then the share price will follow.

Once the cash has really piled up then OPG could announce the resumption of dividends to further boost sentiment.

I suspect that OPG have learnt their lessons in terms of diversification and will concentrate on what should be a winning strategy in terms of leveraging the continuing and long-term boom in demand for power in India.

[tim000] 05/11/2024 10:14

They still need greater transparency on their growth vs dividend/buyback strategy. Allocating capital to growth would be fine if successful, but as we all know has never been so in the past.

[rivaldo] 05/11/2024 10:08

Last year's H1 results were on 13th December, so not long to go.

With historic 1.02p EPS increasing to 1.2p EPS forecast to March'25, and OPG now having £3.6m net cash (incl. restricted cash), OPG looks in excellent shape with Cavendish forecasting a much lower tax charge this year offsetting higher distribution costs and thus a lower PBT.

We already know that OPG are getting 70% plant load this year, slightly ahead of last year, and they've told us that coal and freight prices continue to normalise.

Cavendish have a 28p target price and note 42.3p per share of NAV.

These forthcoming results should be enough to get things moving nicely if all goes well.

[igoe104] 04/11/2024 08:20

Just added afew this morning, with spare dividend payment from other holding ill keep topping up here, especially if it stays around these levels...

[imnotspartacus] 26/10/2024 07:35

They can start paying a divi, that’ll put a rocket under the share price!

[rivaldo] 25/10/2024 10:13

Nice 250k buy at 9.88p just reported and a decent move up.

Sentiment can turn on a sixpence. Hopefully the terrific value here is starting to filter through to investors.

[gb904150] 23/10/2024 14:56

Well, I thought the IMC was very encouraging.

The first time I've really heard solid interest in getting OPG to a realistic market value and taking shareholders interests seriously.

Whether they follow through with that time will tell but as things stand this is a company valued at a fraction of its true value, generating serious amounts of cash.

Should the status quo prevail (steady coal prices, steady power prices) it's unlikely the the current low valuation persists.

If they follow up with tender offers, buybacks or getting smaller II's involved then the value out. But for now, we just have to wait.

[dave4545] 23/10/2024 12:38

His account must be hacked or his kids are having fun.

3 v 1 on L2 so moving up nicely on there

[igoe104] 23/10/2024 12:31

I'll be adding more next month.

Just had a laugh on the POS forum, Paul Scott looks like he's had a few shandies too many, looking at his brazare posts..

[tim000] 23/10/2024 12:07

No, I will likely reinvest but not yet.

[dave4545] 23/10/2024 12:03

Your 250,000 at 9.6p Tim ?

[tim000] 23/10/2024 11:10

Sounds as if there were some interesting points made. But they should be past the point of “actively considering” by now. Greater clarity obviously is required. That could be of the form: once net cash exceeds X, we will return 50% of the surplus annually in dividends and/or buybacks. That didn’t take me 5 years to consider! Still, the business continues to progress…

[cousinit] 23/10/2024 11:05

'Jeremy would you like to make some closing remarks'

I think his honest answer to that would have been 'no'...

Well, so many of these IMC presentations seem like repeats of earlier ones... OPG (other than the answers on shareholder returns) at least provides some variety!

[rivaldo] 23/10/2024 11:02

Indeed, quite a few interesting comments. Although I found it impossible to understand Ajit, the CFO - he needs to slow down and enunciate more clearly.

A few quick notes:

- "actively considering" future strategy, including returning cash to shareholders via dividends or buybacks, acquisitions etc
- OPG are generating "good profits and good cash"
- in a couple of years the cash generated (I assume annually) will equal the current m/cap!
- 65% of the shareholders, incl.Gupta and the largest other inst. shareholder (who they've spoken to recently), are firm holders, as are the other institutional holders
- OPG will not be delisting and they're "fully committed" to a UK listing
- as regards an Indian dual listing, there's no fungibility between UK and Indian shares, plus they'd have to raise £50m-£60m and do something with the cash, which seems pointless given OPG's fast-rising net cash
- I couldn't understand the CFO's answer about the solar debentures. Anyone else?

[dave4545] 23/10/2024 10:34

Actually more interesting than normal with the 2 blokes talking about trading and the mm's and manipulation etc etc

"price could be 3 times higher and still be cheap"

[dave4545] 23/10/2024 09:16

popcorn ready although not sure why ?