I think that is a fair assessment. The repayment schedule represents a decent swing towards equity over debt within that 464m. It clearly gets a bit messy once you consider the growth into solar with its different cost dynamic - free sunshine but capital intensive but ultimately the top line should be growing. There is scope for the market to ease the true p/e up a bit as OPG improves it's risk profile. They are only now easing away from max debt / min revenue stage with coal and they can regulate the solar growth more easily to keep within gearing limits. I remain hopeful of a bit of debt renegotiation also. They are paying through the nose, reflecting that high risk profile which is looking increasingly out of date.
i agree it looks very cheap and ive been in here everytime the sp has hit 60 but the enterprise value is £464m giving a true price to earnings of 12. still cheap and still undervalued but the enterprise value is a truer valuation than the mcap
.... are rock solid. Look at the history of delivery and growth. Looking forward the forecast p/e for year ending 31/3/17 is just 7.6 which would be a growth in eps of 55%. Year 17/18 the p/e is forecast to go down to 6 and then down to just 5.2 in the following year (according to my broker's website). The current sp is a bargain on these figures and value will out eventually. All imo and DYOR.
.... a blue day on today's trades but there is clearly a large sell order being filled in bite sized round number chunks still. Fortunately, there is a big buyer out there too soaking them all up. Just a waiting game till the seller finishes.
Personally don't think this share is so much unloved as suffering the effects of one big shareholder off loading. My guess is the former Chairman who stepped down at the AGM. There have actually been quite a few big buys during the same period so somebody (or several) is taking advantage of the low sp to load up. No idea when he will stop selling but you get a series of round number trades which are quite easy to spot. He can't go on forever and when he stops this should be free to rise. Just my opinion and please DYOR.
Scrips were more useful and popular years ago - Basically when dealing costs were higher.
If you get the dividend in cash for example and want to use it to buy more shares, you would have dealing costs and stamp to pay. If you take the scrip (more shares) instead then you get these usually without any dealing costs.
So, if you want the income for other purposes take the normal dividend - If you are intending to use the income to buy more shares then the scrip is probably more suitable.
That's the basic version, I am sure there are other details but that's what I work from. They're not so popular these days and I do remember them being more popular with Unit Trusts where you could typically buy income or accumulation units.
Does anyone know much about scrip dividends? Are they a good idea for private shareholders?
Notice of Dividend
OPG (AIM: OPG), the developer and operator of power generation plants in India, announces that its maiden dividend, an interim dividend of 0.26p per share, will be paid on 16 February 2017 to shareholders on the register on 30 December 2016. Ex-dividend date is 29 December 2016. There will be a scrip alternative, based on a reference price calculated on 5 January 2017 and announced on 6 January 2017. A scrip circular, scrip election form and EGM circular (to approve the scrip alternative) will be despatched to shareholders on 10 January 2017 and the EGM will be held on 25 January 2017. Subject to shareholder approval, the last date for the scrip election will be 1 February 2017.
A timetable for the key dates is set out below:
20/12/2016 Dividend announcement date 29/12/2016 Ex-dividend date 30/12/2016 Record date 06/01/2017 Scrip reference price announced Despatch of scrip circular, scrip election 10/01/2017 form and EGM circular 25/01/2017 EGM 01/02/2017 Deadline for scrip election Dividend pay date, CREST PAY instruction 16/02/2017 and despatch of scrip documents
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