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Market analyst Rajan Dhall talks about the financial market


Opg Power Share Chat (OPG)



Share Price: 47.00Bid: 46.50Ask: 47.50Change: 0.00 (0.00%)No Movement on Opg Power
Spread: 1.00Spread as %: 2.15%Open: 47.00High: 47.00Low: 46.50Yesterday’s Close: 47.00


Share Discussion for Opg Power


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Ctw2014
Posts: 1,314
Observation
Opinion:No Opinion
Price:48.00
Publicity
Mon 09:32
We had positive coverage in Shares Magazine and Investors Chronicle recently and a brief mention in Money Week. Apparently covered in the Daily Mail a while back too. A repeat now would be just what the doctor ordered. Good value here at a projected p/e for year ended 31/3/17 of 7.7 falling to just 6.2 in 2018. We just need more people to notice!
 
holycustard
Posts: 94
Off Topic
Opinion:No Opinion
Price:48.00
RE: MYT today
Mon 09:12
....seems to be a Daily Mail tip for MYT. (Didn't we have one of those here, recently which helped nudge things upwards?)
holycustard
Posts: 94
Off Topic
Opinion:No Opinion
Price:48.00
MYT today
Mon 08:57
For those that are interested, MYT going a bit crazy today, for no apparent reason that I can see. Maybe a portent for us here on OPG? We can only hope........
Wuffle
Posts: 592
Off Topic
Opinion:No Opinion
Price:48.00
RE: Why OPG?
Fri 18:15
Monkf6,

First thoughts;

MYT annual report, note 24.4 says the bulk of your repayments are in the 10.2% - 13.15% range.
Mostly dollar borrowing I think but not certain, where OPG is IR.
That could be more significant than small rate differences and would explain how MYT managed to get the leverage as that is a very attractive dollar return but only average in IR with their higher inflation.
Might be worth looking into this.

OPG's are a bit harder to find - I haven't nailed the loan rates yet but always carried a figure of 10% in my head for the purposes of approximation. Pretty sure it wasn't under 10%.
An investor presentation suggests 11% finance costs going forward for the proposed solar.

To be honest I think the currency thing is possibly a bigger deal.
Debt and income in different currencies has the potential to go very well or very badly.
OPG have similar issues with coal price in dollars but coal price is often passed through contract pricing as it is directly proportional to demand.
I don't think you would be cut the same slack.

Shall we call it a day now?
We know where the MYT board is if we have more to add.
Monkf6
Posts: 46
Off Topic
Opinion:Buy
Price:47.75
RE: Why OPG?
Fri 15:27
Absolutely agree - the comment about 62MW costing £45m was not intended to suggest OPG overpaid - as you say, that's how much it costs. My intention was to highlight how the valuations we're seeing - for both OPG and MYT - are ridiculously low.

The $1bn debt MYT has is to fund it through to completion of 1700MW (only 500MW of that is solar - all this year and most probably completed already). I'm sure we'll then see them take a similar approach to OPG in paying off a substantial amount of that debt.

Wuffle - if you do have a look at payment terms, please do highlight any differences you notice - thanks.

There won't be a tie-up with OPG and MYT, which is a good thing for both companies. MYT have positioned themselves as 100% renewable. The management style, strategy and culture seems to be very different too. Best for them just to have good relations and mutual respect for each other :)

Ctw - I agree OPG is a compelling investment case and looks very undervalued and a good investment. OPG share price rising will be good for MYT and vice versa. I hope OPG is taking a lead - MYT will follow. Thanks to you all for putting forward your views. Learning about OPG has improved my understanding of MYT.
Ctw2014
Posts: 1,314
Observation
Opinion:No Opinion
Price:48.00
Why OPG
Fri 12:27
Well put Wuffle. Opg has a compelling investment case imo. It is generating good profits right now. It is very cheap on a projected p/e of 7.5 for year ended 32/3/17, reducing to just 6 in 2018. Its debt is more than manageable especially since the recent restructuring. It has paid a maiden dividend and there is the prospect of that increasing significantly. It has good broker ratings (for what that is worth). It has growth/diversification potential into solar. The only fly in the ointment is our persistent seller, who is still around. However, recent share price performance shows very clearly how this can move up nicely if volume increases as a result of more publicity and/or the seller stays away or slows down. It's simply a matter of time imo before value outs here.
Wuffle
Posts: 592
Off Topic
Opinion:No Opinion
Price:48.00
RE: Why OPG?
Fri 10:36
Monkf6,

Nothing about your posts indicate to me that you are foolish but others reading may be more naive.

Could we make it perfectly clear that 1000Mw of solar power can not be bought for the £40m market cap of MYT.
OPG paid £45m for 62MW because that is how much it costs.

Similarly, MYT have debts of getting on for a billion behind that valuation, which they have used to buy their 1,000MW. If you do the maths, there is a similarity in cost per MW, which is always a reassuring common sense check.

I may have a poke about to see what payment terms each is on, just out of interest.
I would expect MYT to be on worse terms, given the finance risk.
Corporate ego's usually prevent tie ups, even to mutual benefit, but within my lighthearted comment there could be a grain of truth.
Monkf6
Posts: 46
Observation
Opinion:No Opinion
Price:48.00
RE: Why OPG?
Fri 09:09
Wuffle - interesting that you suggest / jest the cheapest way for OPG to expand into solar would be MYT shares as it certainly would be!

OPG and MYT are getting into solar at about the same time - 186MW (OPG) vs 500MW (MYT) completed this year - and this just goes to show how cheap MYT is... OPG invested £45m last year to build 62MW of solar. That's more than MYT's market cap is today (£40m) yet MYT has 1000MW of wind with 700MW (solar and wind)! Incredible.

Anyhow - it's been good to find OPG and your message board - thanks for the discussion. I'll head back to our message board but will keep an interesting eye on OPG.
Monkf6
Posts: 46
Research
Opinion:No Opinion
Price:48.50
RE: Why OPG?
Fri 08:42
I only came across OPG (and KSK) a couple of weeks ago when looking for MYT comparators. The graphs for OPG, KSK, and MYT have all followed a similar pattern so it seems the biggest impact has been India or Indian Power specifically falling out of favour over the past year - possibly due to falling prices / increased competition / fear of lower returns. I don't mean to mention the "L" word (Lanco) but maybe that has something to do with it too.

I'm sure we'll all follow a similar pattern up so pleased to see the buys in OPG - I just think MYT will be much better ;)
Ctw2014
Posts: 1,314
Observation
Opinion:No Opinion
Price:48.00
Why OPG?
21 Jun '17
I am actually as pleased as punch with today's trades and sp movement. As stated, some very nice round number buys, and no sign of our seller today. I would rather have regular 1 or 2% rises for a sustained period than sharp spikes and drops that just attracts speculative trading and volatility. This has been drifting slowly down for an age on persistent selling but now it's started to creep back up. Long may that continue. It should logically, as it is clearly undervalued imo.




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