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So happens ARS is another stock similar to MPL for me. The stock has taken a pounding, I just got into it, it is now the second biggest stock on my portfolio and Mount Teide hates the stock with even more passion than he does MPL.
Fair point Slortibort. Long way to go still. I still consider this a high risk high returns investment too.
I hope they do not get too ambitious and start on Karanja Creek only after generating revenues and convincing the market that they are profitable. They can then avail bank loans at more favourable interest rates and keep dilution of stock to a mimimum.
I'm certainly invested and I'm generally bullish on this one, but I think quite a bit less so than yourself Tils. I don't necessarily think it will catapult.
In particular, I'm a bit concerned about how much the extension is going to cost and where they'll get the money. In all likelihood they'll take on a lot more debt, in which case I'll have to look closely at their debts/assets and income.
What I'm really worried about though is in case they further dilute the stock, as they've done before on a few occasions. They're still a small company and whilst noone wants that, it might be their only way to grow if they can't raise the funds otherwise.
Even still, they've got a functioning port and a tiny market cap compared to similar companies. I'm bought into this. I just consider it one of my riskier punts.
Just to add logistics is shyte in India at the moment, billions has been earmarked by the now efficient central government for ramping up logistics across the country(which is what 'Sagarmala' is about). Good news is MPL is part of the sagarmala ambit and should get value added by default when the govt improves infrastructure. Also, with Sagarmala, the impetus is now on moving paperwork quicker and lessen bureaucratic delays which works nicely for MPL and can be seen by the speed at which documents are being requested and filed imho.
Mobile + fat fingues = typos sorry
My pleasure GF. One pf the main reasons i an in mpl heavily is this stock has probably taken the most battering because of the delays.
Like you just said, it is not in their hands and after all these years, if the first contract for the 5.5 million has come through, this was the perfect time to get in( with less then 20 pc free float).
All the docs they are filing for karanja creek show that they are planning a few years ahead now.
Also, the self professed experts on these board seem to be concentrating only on the port, the dredging etc etc. The ‘logistics’ of ports & logistics is what interests me more. Real estate and storage space are at a premium in Maha in general and Mumbai in particular, so a premium price would be charged for storage per ton imho and not the laughable fogure 60p per tonne as someone said.
Karanja creek might take a few years yet, but should catapult share value if and when it happens. Aimho dyot
Thanks! It looks like they're just filing responses to queries they're getting about the local area.
We might not be getting much view of the future with this document, but I find I'm very rapidly getting an appreciation for the bureaucracy of Maharashtra. That's an area of knowledge I definitely didn't think would grow under this lockdown.
And another this week GF:
forestsclearance.nic.in/DownloadPdfFile.aspx?FileName=0_0_51128122712181Archeologicalareaoutside10kmradius.pdf&FilePath=../writereaddata/Addinfo/
Another new document filed towards Karanja Creek approval
My pleasure GF. Agree with your theory that they are in the process for getting clearences for karanja creek for later.It makes sense as environmental clearences take ages in India. Hopefully, we will be in a more advanced situation where we can afford to expand by the time clearence happens.
Ah, thanks for that information dump! I'm reading between the lines then that they're looking to expand Karanja Port further into Karanja Creek (this was confirmed already) and that this is a paperwork exercise related to that. Furthermore, their paperwork is lined up for it, but they haven't actually started the job.
That makes sense what with the first port not making a profit yet and covid wrecking lastyear's plans. Still, it's nice to know that they have ideas for further business growth.
add 'http://' to the beginning of each link.
GF:
Application for expansion was made in december 2019/jan 2020 by the looks of it:
forestsclearance.nic.in/viewreport.aspx?pid=FP/MH/Others/45435/2020
Details of the application are as follows:
details of the application are as follows:
forestsclearance.nic.in/DownloadPdfFile.aspx?FileName=5111612311215TAH76Authorizationletterfromdirector.pdf&FilePath=../writereaddata/FormA/UserAgencydoc/
section C of the application looks interesting.
I certainly expect there will be an update. They have updated from time to time for the past decade, but i'm just trying to piece together what's going on after that last update. Working out what work isn't started is proving harder than I thought!
That's ok mate, always tricky on a phone to get it word perfect, been there many times before...good post and it sums up my feelings on the stock. I've said before...buy and hold, as Warren Buffet sometimes says ...some people just dont want to get rich slowly...anyway hold for gains, I'm holding long term and that's several years for me, imagine having bought into a stock at under a penny and in a few years it's worth pounds...
Atb
Lockes...
Sorry, must apologise for the terrible grammar and spelling in the last post but I'm currently at work and messaged on on my phone. (you can't edit these posts either!) The main point I was making that in the the last line of the RNS Jeremy Warner Allan states "I look forward to updating the market as we close further contracts with pipeline customers throughout the course of the year" GLA
Jeremy Warner Allen, Chairman of Mercantile Ports said, "I am very pleased that we have entered into two long term contracts with customers who have carried out significant due diligence over a number of months on various port and logistics facilities in the region and came to the conclusion that the Karanja facility provides modern infrastructure that will aid in the growth of their respective businesses. These contracts highlight the important part that Karanja can play in the growth of Maharashtra and the neighbouring region.
Just re-read tbe last RNS. MPL are working hard to grow and develop this port. Yes there have been problems but they are working them through. As i sad ive sold shares before and regretted later when the price shot up. This is a hold for me. The management are well placed and have contacts in the region and the first shoots of growth are coming through. This could be a share that you wish you had bought into years from now. But that is my own opinion. There will be investors who have made lost a lot in the past but could be a share to watch in 2021. Ive just bout more!
Jeremy Warner Allen, Chairman of Mercantile Ports said, "I am very pleased that we have entered into two long term contracts with customers who have carried out significant due diligence over a number of months on various port and logistics facilities in the region and came to the conclusion that the Karanja facility provides modern infrastructure that will aid in the growth of their respective businesses. These contracts highlight the important part that Karanja can play in the growth of Maharashtra and the neighbouring region.
"I am also pleased with the progress being made with the Tata-Daewoo Contract announced previously. I believe that this clearly demonstrates our facility's importance to the region. Over the last few months, we have significantly strengthened our business development team and I look forward to updating the market as we close further contracts with pipeline customers throughout the course of the year".
Seeing as I apparently can't post links, to find it, google "Karanja terminal", specify hits within the previous week. It's hosted on the domain of forestsclearance .nic .in
I found this document certifying that "Works have not been started...for the purpose of proposed expansion of multipurpose terminal at Karanja creek".
I don't suppose anyone could share any context on this?
I found it by typing "Karanja Terminal" into google and specifying hits only within the previous week.
http://forestsclearance.nic.in/DownloadPdfFile.aspx?FileName=0_0_51128123212181Worknotstarted.pdf&FilePath=../writereaddata/Addinfo/