Member Info for Bev88

In response to the request for my evidence re. coal powered generation :- the IEA report dated 2112 states that 41% of electricity worldwide was coal powered. Coal powered 93% in S.Africa,78%in Australia, 67% in Poland, 79% in China,68% in India, 41% in Germany and we know it was over 40% in UK last year. World Resource Institute states in Nov 2012 that 1200 coal plants were under construction in 59 countries. Yesterday's capping of CPF (Carbon Price Floor) shows ,as expected , a move back towards common sense in that our future depends on us competing on price with the rest of the world in energy cost.

Well said that man-I think you have it about right-the risk is there , hence the low p/e, but these guys are doers not daunted by doomsayers and are ,as you say, light on their feet. Incidentally, don't underestimate Kevin Dougan just because he is ex British Coal. He demonstrated to me a deep knowledge of opencast issues and how to manage them.

To paraphrase Oscar Wilde, Mrs Moneybag's report of the death of coal is somewhat exaggerated- not to mention repetitive. Given that as I write this ,not only is coal massively the biggest power source worldwide but has the lions share of plant under construction,be it China,India,Germany,S.Africa etc. To turn round this supertanker in the near future would be impossible and not to realise this somewhat undermines the credibility of her contributions.

With respect Mrs Moneybags while clearly well versed in future possibilities such as enhanced geothermal(still experimental) is forgetting that we are running down our base load supply whilst killing off any new supply by politicians scoring points by seeing who can best deter capital being risked for new plant. We are close to minimal safety margins and a couple of major outages away from power cuts which will bring us back to the real world.

Solar and non fossil power needs massive connection infrastructure which will take years to organise. In South Africa one sees very little evidence of solar panels and in this country they will at best heat your water or provide some return based on previously excessive but now reducing tariff income-not a viable alternative to centrally generated fossil powered electricity. We must not confuse what may well happen in years to come with the reality that we are currently reducing our safety margin by Governmental dithering and in the meantime Hargreaves and their ilk are in the business of making hay.

All these potential developments do not alter the reality of today. The fact is we are shutting down sources of power faster than we are building them. This is compounded by an increase in industrial demand. Politicians are currently frightening off new projects, be they biomass, windpower or solar by threats of price caps and tariff freezes. Futhermore, we are stalled on nuclear by european beurocracy, while gas is too expensive. When the liklihood of power cuts, as I experienced in S,Africa last week, becomes real, minds will be concentrated by reality not futuregazing.

Renewables only reach anything like parity with fossil fuels when massively subsidised and the latter are heavily taxed. We all know that in the very long term coal use will decline. As I write this , however, billions are being invested in new coal fired plant worldwide- far more than any other power source. Like it or not, money is talking , and in the absence of any new reliable plant in the UK in the forseeable future ,set against increased likely demand , fossil fuels will have a big part to play in the years ahead.

Those who would write off coal have been dealt a shock with the sudden threat to the security and cost of our imported gas supply . All that quantifiable coal just below the surface within our shores might not be such a bad bet after all! On top of this we hear that carbon tariffs are likely to be frozen thus hammering future investment in wind power.Ask yourself how we suddenly replace the 40% of cheap reliable coal powered electricity at an affordable price.

We seem to be nearing a consensus of sorts. The delivery on opencast will,of course be key,and yes,we know that coal generation is in decline-possibly more gradual than generally assumed.My standpoint is that this management has demonstrated the capability to meet challenges in it's areas of expertise and has delivered consistently on it's promises. Furthermore they have a strong and loyal institutional backing eg Hansa Trust,Artemis,Odey etc. My various conversations with the Board ,and other seasoned observers, gives me the strong feeling that they will have the last laugh on the doubters. As always time will tell but so far the market appears to side with me!

Goldcoaster's comments are disappointing in that he suggests that the m.b.o. players have left the scene. On the contrary,Gordon Banham's team is still very much in place and enthusiastic with large share holdings.Furthermore the cheap coal imports from USA and elsewhere play into Hargreaves' strengths ,since,as a major importer , they can supply a reliable power source at less than half the cost of wind and well below gas. Just because UK Coal lost control of their borrowings and couldn't capitalise on their massive land bank one mustn't assume that history will be repeated.

I welcome Goldcoaster's comments - mettle will indeed be tested re. Delivery on opencast. My conversations at Agm with director responsible gave me confidence that expertise and capability is in place eg. Satellite surveillance to monitor operation of hydraulic diggers. One factor not understood is massive land bank at Maltby and elsewhere post opencast- conversations with builders have taken place. Mrs Moneybags has a point re.coal out of fashion, but can't deny that it is by far the cheapest source of power and the rest of the world is voting in the main with it's wallet. Our Government will find it difficult to ignore the pull of reality.

What has attracted me to this outfit is the way they have coped with an outrageous run of ILL fortune The Management's mettle has been severely tested by 1/massive fraud resulting in closure of hitherto promising plant in Belgium. 2/Unprecidented geological issues causing Maltby closure with associated need to resource coal for Monckton coke.3/Landslip issues at Hatfield 4/Slump in world coal prices 5/Unprecidented rainfall affecting opencast work at Tower and elsewhere. 6/Challenges in supply of coke to contracting UK steel plants In the face of this ,Management has maintained profitability ,and momentum,in continuing business ,while increasing divs.and crucially,keeping pundits onside. Sure,they have seized on any GOOD fortune,such as sudden availability of distressed opencast assets , with alacrity. They regard headwinds as a source of invigoration rather than cause for capitulation. I send this from S.A. where I find that yet another massive coal powered plant is soon to be commisioned at Medupi,along with those in India,Germany and China. Hargreaves plans to have an increasing presence in the last two of these countries as the Uk coal usage eventually scales down.

Most serious money is made when people have the guts to buck the popular trend. This can create a niche position when the weak players leave the scene. When this is allied to superb management and the ability to adapt quickly you have an investable proposition. Those of us who have followed Hargreaves closely know they fit these criteria. This is no one trick pony and those who back against them beware!

Mrs Moneybags hits the nail on the head-nobody has any idea as to how we a suddenly replace the 40% of power currently generated from coal, especially when the politicians have put the hand of death on new generation by attacking suppliers. We all know that in time the dominance of coal will reduce but given that the supply margin is paper thin, and with demand rising in the recovery phase, the chances are the likes of Hargreaves will be in big demand for some years to come. These realities will not be lost on the market forever.

Lord Brown in today's D.T. states that we are currently consuming more coal and less gas than at any time since 1995. This, coming from an 'oil man' is a reality check for those who would write coal off . Hargreaves , despite the appaling wet condiions , making open cast work difficult, again have shrugged off their problems to come up with excellent interim figures. I repeat-'underestimate this outfit off at your peril'.

Divesting the problematic German operation should allow the management to focus on their dominant position in roofing and insulation materials market in UK. Given the rapid acceleration in residential construction one would expect them to be in a strong position to ramp up proifits.

Just been checking my files for May 2nd 2007.Daejan were at 4906p and Mountview 7325p. Based on that present prices aren't so racy. Daejan have the momentum but Mountview have a much bigger discount to assets. both have low borrowings and pay a decent div. Both have made great progress over the last 7 years and it's hard to see any reason in this environment why they shouldn't power on.

Something would appear to be afoot following purchase of £185,000 of stock in one trade at years high - hmm, very interesting !

Now the Javelin holding is being merged with the successful Majedie Asset management , thus derisking the stock ,this investment trust is being seen as the bargain it clearly is. Years of underperformance will soon be forgotten and the focus will be on the excellent portfolio at a discount of over 20% to market value paying a solid 5% or so dividend?As always the patient are being rewarded as the mispricing is becoming noticed by the market.

Thankyou for your kind comments plumpicker. My comments are solely based on my meeting, over the years,the management of both DJAN and MTVW and avidly following them . Their interests are totally aligned with shareholders' and they find themselves chock full of sought after assets with low borrowings and at considerable discount since they have been largely beneath the radar of big funds. Some people are less interested in companies where management has such a large stake-personally I find it reassuring- hence they represent by far my largest investments.One simply enjoys being paid well whilst enjoying the steady upward journey .