Pires Investments Share Discussion Threads

[outspan] 23/8/2014 23:54

Not going there without giving the market a good reason but I'd say there are some strong hints that PIRI is looking to break away from being just another AIM investment company and form itself into a niche renewable energies facilitator of some description.

Already having assisted Rame's route to market, I think one or two other flags were evident in the Interims but the potential significance wasn't very widely appreciated. Probably something to do with PIRI being off the radar and needing to find some new "friends", possibly also the usual way these things are summarised by the financial media. By contrast, I think this writer actually read it properly and "got it"



"...Renewable energy project financier Pires Investments revealed it is eyeing new projects in the sector as it moved into the black at the half-year.

Pires, which invested £465,000 in AIM-listed Rame Energy earlier this year, said it had seen a number of interesting international opportunities in renewables and had set up a subsidiary to focus on it.

Chairman Peter Redmond said: 'We have a number of significant transactions under review and have entered into a partnership arrangement with a significant European wind consultancy/developer in relation to one of them...

...Pires also said it would approach shareholders in the near future to propose a re-focusing of its investment policy and it expected extra appointments to strengthen the company's experience and profile...."

[ember11] 23/8/2014 16:23

I agree re change of the chart pattern into bullish. That's why I've topped up recently. 0,76p target price? Of course would be very nice cause I'm heavily invested here but can you share a source of such a great TP.

[liquid millionaire] 23/8/2014 15:15

PIRI



The chart for PIRI is imo now showing some serious improvement post the double bottom.

Higher lows and higher highs bodes well imo for a turnaround play at PIRI

Share price target for PIRI of 0.76p i.e. more than a 10X BAGGER

[outspan] 22/8/2014 15:20

Nice little chart pattern developing. Not a chartist but looks like a break out from the long downward trend.

[xcap] 22/8/2014 14:54

2605/06 great research

[t-raider] 22/8/2014 13:48

Would be good to see more volume... nice move up nevertheless."T"

[flojo] 22/8/2014 12:04

Asking full

[outspan] 22/8/2014 11:57

Where's swizz? Didn't he say he would do us a new thread?

[outspan] 22/8/2014 11:52

I think mine are obvious :-)

[flojo] 22/8/2014 11:46

Anyone who picks up at this level ,i thinks has a bargain. Thoughts.?

[outspan] 22/8/2014 11:41

Yes, I think with a lot of the City on their jollies, it may well be a slow time to finalise things, not to mention the reduced impact of any announcement at this time anyway for much the same reason. Before the end of Sep would be fine. Fingers crossed.

[droftarts] 22/8/2014 11:34

I am hoping for news before the end of September

[outspan] 22/8/2014 11:24

I see the major shareholders list on the PIRI website was updated earlier in the month.

Bruce Rowan/Gledhow still completely on board, as indeed are Ambrosia and AIMS Consultancy, the 2 investors that put in £500k last Summer at .1p

Apart from that, as could be expected, marginal changes to most of the nominee accounts of the various broker houses apart from one - Jarvis Investment Management (JIM Nominees) which has seen a huge change from c. 8.5% in the Final Results declaration at the end of Apr to over 12% now. That's about 80m shares added!

So, the 3 main investors apparently quite content and just maybe somebody stakebuilding on the quiet during the Summer weakness. Make of it what we will.

[outspan] 21/8/2014 09:26

Rame not mentioned specifically in this article being linked to Rame on Directors Talk:



Might actually have direct relevance to PIRI. Obviously closely connected to what Rame is up to and remember the Interims statement:

"...While the Company is not exclusively focused on renewable energy, it has, since investing in Rame, seen a number of interesting international opportunities in this area and we have established a subsidiary company to focus on the sector.

We have a number of significant transactions under review and have entered into a partnership arrangement with a significant European wind consultancy/developer in relation to one of them..."

Meanwhile, from an earlier post of mine:



"...On the back of this, having taken a look at Companies House today, the MoFo chap appears to have been at work again. In early March, the temporarily named companies MOFO-SIXTY ONE LIMITED and MOFO-SIXTY THREE LIMITED were renamed as Renewable Energies (Investments) Limited and Energy Investment Opportunities Limited respectively.

In each case, Christopher Yates, PIRI's own Company Secretary (and last Director to add a few million shares), was then appointed as Company Secretary so it may well be that more than one new PIRI subsidiary is in the making here although, so far, it is only at ENERGY INVESTMENT OPPORTUNITIES LIMITED that Peter Redmond has since been appointed as a Director, on 7 Jul, replacing that man Lukins! I therefore assume this is the new subsidiary mentioned yesterday with maybe another to follow?..."

[outspan] 21/8/2014 09:25

Rame word continuing to spread. This article also being featured on "Scoop-it" and "Directors Talk" websites:

[xcap] 18/8/2014 12:42

should get to .10p if PIRI need money and this would signal the we are about to acquire another asset?

also RAME coming good now

[outspan] 18/8/2014 09:45

Posts crossed T. Similar observations...

[outspan] 18/8/2014 09:43

By the way, any chartists out there? Is PIRI set to break out of its long downward trend? Any "golden" signals looming in the 200/50 MAs?

[t-raider] 18/8/2014 09:42

Chart starting to show some improvement after the doubl ebottom at under 0.04.

Higher lows and higher highs bodes well for a turnaround play.

"T"

[outspan] 18/8/2014 09:31

Wish PIRI would flag up progress of its investment itself like other investment companies do but great first investment, going to be a star over time and perky Rame share price only serves to increase the PIRI nav/SP disparity. Plenty left in the kitty for more corporate action. Bring it on!

[liquid millionaire] 16/8/2014 13:54

RAME [also good for PIRI as a large RAME shareholder]



Rame Energy looking to power up with Chilean growth
By Craig Ribton August 11 2014, 2:41pm Opportunity knocks: Chile offers a significant opportunity for Rame. Opportunity knocks: Chile offers a significant opportunity for Rame.
Rame Energy (LON:RAME) has come to the market with what, on the face of it, looks like quite an interesting investment proposition – bringing renewable energy to the industrial sector in Chile.
When you drill down and assess the company's expertise in this sector and couple this with its unique funding deal, you realise the group has a very well thought out strategy.
The essence of the opportunity is found in Rame's engineering heritage, in particular its decade-long track record in managing specialised wind power projects.
The breakthrough came when the group was asked to build, from scratch, a solution to Barrick Gold's energy needs, in the Andes.
"It is the highest operating wind turbine in the world," said chief executive Tim Adams of the giant wind turbine Rame built.
"We thought it [the project] was going to be all about logistics, but in fact it was also about developing core technology that worked at altitude."
"So we gained a lot of experience of what's in the box. It took us into Latin America and exposed us to the mining industry and was our first demonstrable turnkey power project at scale."
Rame immediately became recognised as a leader in this particular niche sector - and it was obvious there was an opportunity to build, own and earn yield from these projects.
At the same time, project funding for wind energy, which had been problematic in the aftermath of the global financial crisis, became easier to source.
This all led to a decent starting point for Rame.
The company is being bankrolled by a local subsidiary of Santander under a quite intricate funding formula that appears to be a win-win.
Santander has committed US$69mln; however, this isn't subordinated debt.
It will invest at an equity level, acquiring its stake of up to 90% of the project, on an agreed price per megawatt hour.
Under this formula, the amount invested by Santander to acquire its stake will be more than it costs Rame to develop the asset – so there is a profit there for the company.
It also makes a margin from the building phase itself. Rame's expertise in project management and construction should minimise the leakage of cash out to a subcontractor.
"Less than a year down the line, Rame will have the opportunity to buy Santander out of its share of the project," Adams said.
"This should see the bank receive a private equity level of return for a short hold period, while still generating a strong return for Rame for the life of the project."
The deal could be funded through a traditional bank facility, although it is considering all of its funding options, including a bond.
The last stage of the value creation process would be to sell 49% of the forward revenue stream to financial institutions such as cashed up Chilean pension funds, seeking to invest in long term and low risk cash flows.
"They are hungry for low risk, stable income project investment and are increasingly recognising the potential of energy projects, in addition or as a substitute to traditional infrastructure projects such as toll roads or hospitals," the chief executive explained.
"We would then be left with a majority holding of a project which, in addition to the immediate revenue from the sell down which can be re-invested in new projects or returned to shareholders, will provide the company with a long term, stable income stream."
As he points out, 100 megawatt (MW) sold on this basis "would see substantial cash inflows".
The group expects to build 300MW of capacity by 2017 and the Rame chief executive is confident the demand is there to achieve that target.
The group cemented its relationship with Santander on the 15MW Raki-Huajache Project that should be completed by the end of the year.
Rame has already completed the bulk of the development and thus Santander is benefiting from short lead times.
Transforming itself into an independent power producer (IPP) is just one of three divisions which provide revenue streams to the business.
The company also has a small-scale generation division, which is focused on the fuel replacement market.
As highlighted by its partnership recently established with Mandalay Resources (TSE:MND), there are plenty of opportunities for this division, which adds renewable energy such as solar, wind or heat recovery systems to create hybrid power generating systems.
Because of the stated short life of Mandalay's Cerro Bayo mine, in southern Chile, few traditional renewables companies and power producers would see an opportunity to make a fuel displacement power project work, CEO Adams said.
Meanwhile, its size, small at 1.5MW, would also be off-putting to companies without the requisite expertise and background, he pointed out.
However, Rame is making the leap, knowing where others can't, it can make a good return over the stated remaining life of the Cerro Bayo mine.
If, as Rame anticipates, the life of the mine is extended, then Rame's investment would continue to see the benefit.
"In fact these small fuel replacement jobs segue quite nicely with the larger projects, while the income stream will also be aided by the income generated by the base engineering business," Adams said.
He also believes Rame could start paying out dividends from some of this growing earnings stream in the next two years.
"We are currently saying the sweet spot for us is when we have circa 100MW. So there is no reason why we couldn't dividend in early 2016," the Rame boss explained.
As outlined above, the company's expertise has been derived through its Engineering Services Division, which supplies bespoke power generation solutions to the industrial, mining and utility sectors.
This third division operates in both the UK and Chile, and continues to generate a significant revenue stream.
In fact, Rame recently acquired a long-established UK solar business to bolster its capabilities in this area, and this could also provide opportunities for the Large Scale Power Generation Division in the future.
Rame also sees strong opportunities for growth in this area and this will be another focus for the management team in the coming months.
It is this flexible and diversified ability to provide power solutions to a range of different projects, as well as build its own, which makes Rame such an interesting and solid proposition.

[xcap] 15/8/2014 07:27

Rame is a sound company with sound management based on solid financials with a major international bank prepared to sanction their funding requirements: Santander.
CEO openly stated he intends to make dividends in Q1 2016, not many CEOs can make such a claim

[clarityjones] 14/8/2014 16:28

Good to see an uptick on the back of Rame

[t-raider] 14/8/2014 11:01

RAME continuing its ascent... soon that investment will be worth our market cap on its own !

Still looking for that next deal from the board....

"T"