Member Info for Bhajanbuffett

Warren Buffett's famous quote "If you wait for the robins, spring will be over". Been following Essar since Jan 2012, feel this fall on same line.

As the saying goes, there is a very thin line between Genius and Stupidity, only time will tell, I have faith on what India needs, Essar is well positioned.

Just bought on IG CFD 20k at 87.75

Essar Energy should address the Rupees high interest debt as a priority

Selling Kenya Refinery is a start, I hope Ruai Brothers is listening. But on the other hand, if the book value of the assets, for example sake is $9Billion dollars, debt is $6.6Billion, Gearing 73%. To invest similar assets, it will cost $18Billion, debt $6.6Billion, gearing will be 37%. And looking at the prospect what India is, I personally feel, at 100p, this is a very cheap stock. Essar is right to sell the Kenyan Refinery, as it need $1Billion dollar to invest to upgrade, so no real equity there.

I mean, I hope Essar oil will get generous credit line.

Desalination is not part of Essar Energy, I don't know why you keep bringing it up!!!

Can you please give an alternative solution of what the Ruai Brothers should do?

With western powers reach nuclear deal with Iran, I hope relaxing sanction will improve the debt issue as Essar Oil were one of few companies keep on dealing with the Iranians, they will get a credit life-line for their support. Also will help, the fall of oil prices.

The Ruai Brothers have to address the debt issue quickly if not then they should step aside.

If being a critic of current government policies is define as anti Indian Government then that is your opinion. What started the decline of Indian rupees is, the Indian government issued a retrospective tax amendment based on tax demand on Vodafone which resulted in outflow of foreign investments. I can go on and on and on

I am not saying that this company will definitely turnaround in a sudden to huge profit and also definitely will not go bust. I have reduced my holdings over here when the economy and currency heading downwards but still believe in the long run I will make some profit. Yes, I have agreed with you the management could do better but really speaking, the biggest culprit is the current Indian government, they are so scared in decision making so as not to lose in coming election. If they cut the subsidy, the refinery and retail side of Essar Oil will make serious money, If they approve the clearance for coal and gas drilling, Essar Oil and Essar Power will make serious money. Sorry, I am in a rush for a meeting.

I wish i had a crystal ball, to know the rupees was going to fall, the Indian economy is slowing, the government of India is useless in the last 6 months etc etc etc. But I also know this, there is a great need of energy, the middle class is growing at rapid rate, election is coming up (thus making decision easier post election), there is a lot of infrastructure project in the pipeline etc etc etc and like the sage of Omaha, Warren Buffett, he bought shares, made serious money when nobody wants them. Just a year and a half ago, people were predicting the demise of Euro. Again one should diversified ones investment and not put all eggs in one basket, even if the brokers has the ratings as below http://sharedealing.nandp.co.uk/broker-views/ESSR/Essar-Energy-news

Nov 20 (Reuters) – Essar Energy Plc <ESSR.L>: BofA Merrill cuts price objective to 260p from 295p; rating buy

Does anyone knows, what happened to MATRIXMARK

Same as you, I still own some shares, valuation is okay and if any company wants to have the same setup, it will cost them double than what had been invested. I am no brother or closely related to the Ruai brothers. Agree they could have run it much better than they are currently doing.

You have not change, I remember when the shares was hovering 99pence more than a year ago, You said the same thing!!!

You are right, they need to address the debt issue quickly, as the interest is eating up most of the profit Election is coming up next year, current Government are not taking necessary steps to reduce its deficit, the single biggest portion of its budget is subsidized fuel, the cut will happen after the election. For Coal supply, with "Coalgate" scandal, Ministry are scared to clear the forest for the coal supply to materialise even though India is in great need of energy. .

Parkside13, Indian politics is the main culprit, which is why they have not perform as how it should be. I still have faith in Essar shares. Just bought some-more, did sell half of my holding at 135p to 150p. Gr8 if the government can find buyer for the Grangemouth plant, to safe jobs.

the closure will surely benefit Essar Energy Stanlow plant.