Renewable Power & Light Share Discussion Threads

[jonc] 31/8/2007 09:54

"don't see tham as high risk"

The business plan has been blown out of the water by incompetent directors, they have converted a power station and have no fuel to run it profitably, they have built a refinery but have no feed stock.

LOL!

[maestro4] 31/8/2007 09:39

little top up was mine, hold £10k..

little gem..

[perch1] 30/8/2007 20:53

Robin of Loxley

been thinking about these "clearly not for widows and orphans..." and "highly risky still.." statements from youself today. True - we haven't had any news for over a month now, however, here's a business thats currently trading @ £26.21 m market cap with approx (after vendor debt and power station refurbishment)£18m in the bank - not even mentioning assets

As I've said before on this bb we're currently way undervalued on this business due to an operational issue as opposed to strategic. EVERY business suffers from time to time with underperformance in one department or another give it buying/purchasing, (just ask M&S five years ago), supply chain & logistics, finance, marketing or in this case sourcing. As we know key to manufacturing is raw material supplied from reliable suppliers, forecasted well, delivered on time, and at the right price - this was lacking here.

As long as they identify and rectify the issue and not change strategic direction every 5 mins the business will recover -

They've identified there was a management problem -
" In addition, RPL has begun the process of recruiting an experienced senior
manager who will have responsibility for managing the upstream feedstock
sourcing operations within the group " - get someone on board who won't deal with dodgy suppliers, knows how to negotiate properly and can build strong relationships with supply base.

I too would like to see these rise but don't see them as high risk ( just feels that way as we haven't heard anything for a month) - the strategy remains robust - any news with even slightly positive feedback on the implementation of long term sourcing of quality feedstack has got to push this higher IMHO - also no advise intended.

[robin_of_loxley] 30/8/2007 15:32

if it was so easy to get production that way and avoid the cost for the product, then why is the price so high for palm oil? That would take growing oil palm, and making the palm oil.... I wonder what would be involved, how long the lead time would be, what the ease of doing it would be, and whether the cost of doing so would actually save them much money as against buying the feedstock in the opne market when you look at the management overhead of running a plantation and converting it to palm oil...

after all, what busines to they want to be in, growing oil palms? (potentially not sees as very friendly environmentally) or producing renewable power from renewable feedstocks (ie looking more ecofriendly, and not looking so directly responsible for loss of tropical rainforest for oil palm production)

I wonder....

Id like to see these rise, but I do see it as highly risky still..

no advice intended

[martincoops] 30/8/2007 15:12

if they buy their own plantation they will then have the option depending which is the most profitable......

[robin_of_loxley] 30/8/2007 14:52

lol martin, that was on the basis of having the palm oil at a good price on a contract...

that supplier fell through and defaulted, they now have no feedstock, nd they are now looking to buy it in, in the price heightened market that would have given the ability to sell on any excess they had...

question is, will they be able to secure feedstock at a price which keeps the operation profitable... and overcome the other significant risks in the project....

clearly not for widows and orphans...

no advice intended,

RoL
>>>>>-------------------->

[martincoops] 30/8/2007 14:39

If I remember rightly they said if palm oil prices increased and it was more profitable to sell the oil than use it in the power sation then they would sell it. Also they have the capacity, or will have to run the power station as well as slling some oil.

Not long till results and an update I hope

[pezza2] 30/8/2007 12:00

I read in yesterdays FT, something along the lines that as palm oil prices have risen so quickly, the companies that grow the stuff have made huge profits without being taxed highly. Therefore, the Indonesa govt are starting to look at taxing these companies alot higher going forward.

It also mentioned that some growers had been caught out (no names mentioned) by selling their palm oil on forward contracts while watching the prices shoot through the roof.

From my viewpoint from reading that, I can only see the prices of palm oil getting much higher from current levels. Therefore, I can't see how RPL will be able to sign a contract for large amounts of palm oil and especially on a long term contract. Does their business model still work as if they will only be sticking to palm oil, i can't work out their expected margins ?

If they're going to grow their own for the long term supply of palm oil, why not just become a producer of palm oil ? thats doesn't seem to agree with the original business model, or does it ?

[maestro4] 30/8/2007 09:47

these have been oversold for around a month now, mkt will soon realise.

[orvil] 30/8/2007 09:34

just bought a few more 7k

[nilip] 30/8/2007 09:33

Level 2 strengthening again

2 vs. 2

Into the 30's soon mi thinks ...

Rising on very, very little volume buys.

[dusseldorf] 30/8/2007 09:29

online buy limit seems to be 15k, having no trouble being quoted 26.4 to sell 20k shares

[mart] 30/8/2007 09:23

Joined you and bought a few.

[robin_of_loxley] 29/8/2007 17:44

some fireworks would be nice ;-)

[maestro4] 29/8/2007 14:49

this could rise quickly to 40p. i'm sure they are very close for the agreement, but when they will actually receive the palm oil is another matter.

First things first, agreement.
:)

[martincoops] 29/8/2007 14:45

Obviously not that many then ;0)

[martincoops] 29/8/2007 14:22

Just wonder how many they have left to sell, another 10k just gone through at 27p so looks as if they have a few.

[nilip] 29/8/2007 13:59

Level2 looking mighty fine for another move up.

Only KBC left on the offer.

3 vs 1.

[omellete] 29/8/2007 09:09

No my email to them was pretty rude - I'll put it up anyway. Surprised they even responded.


Dear Sir,

Whilst I know that you neither acknowledge any correspondence or care about your smaller shareholders - I thought as I am invested I would share the following insight with you. Certainly if you can get such a deal in the market, it will be infinitely better than the last deal that your senior VP managed to sign with a company that he seems to have located via the Alibaba website. Especially one who could never deliver.

I have posted this on a BB that I normally contribute to - and hope that your senior VP - who I assume still works for you - can take a lesson in how to conduct business and execute shareholder value.

[boffster] 29/8/2007 09:00

Does that mean you think you're their favorite? :)

[omellete] 29/8/2007 07:15

I got an additional few lines in my reply though.

[dusseldorf] 29/8/2007 07:12

seems to be the standard reply received by others, thanks for posting

[asparks] 29/8/2007 05:41

it seems all enquirers are being sent the same email at the moment. I just got this:

Dear Sir



Thank you for your email. As you will be aware from our stock exchange announcement of 11 June 2007, we had already started seriously investigating the use of alternative feedstock supplies prior to the breach of contract by Safari Group, which we announced on 5 July. As we made very clear on 13 July, in addition to taking legal action against Safari, we have accelerated our strategy to establish our own upstream feedstock sourcing operation in an effort to replace, as soon as possible, the volume of biodiesel feedstock oils that would have been supplied by the Safari contract. As announced, a number of opportunities have already been identified and are currently the subject of detailed analysis and review under exclusivity arrangements. We will, of course, provide a progress update on these evaluations in due course.



We continue to be confident of the merits of our business model and although the setback with Safari was extremely disappointing, we remain committed to generating attractive returns for our shareholders.



Kind regards



Carol Johnson on behalf of David M. Lewis, CEO





Carol Johnson

Office Administrator

Renewable Power & Light

#1030, 540 - 5th Ave SW

Calgary, AB

T2P 0M2

T: 403-262-5510

F: 403-262-5520

[e-mail]

www.rplplc.com

[maestro4] 28/8/2007 13:48

still has some life.

await news not long to go.

[robin_of_loxley] 28/8/2007 08:56

Maybe, but as you say a bit of a long shot...

lots more acres of feedstock out there than dmr's potential relationship...