The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
It looks like someone sold nearly £500K this morning and yet someone how the sp is up nearly 10%. There were several smaller buy orders (the most we've seen in weeks) after the big sale but I don't understand how that can happen - that much more is sold than bought and yet the price goes up. Any ideas? Or can someone with a better understanding than me explain? Thanks
We may have to wait a little longer yet... from what I can see 2012's results were released in June 2013 and 2013's are not on the website in the comms. section (so no idea when they were released) but they are there in the annual report - and that was a very good year. I agree that it's bad they don't just give us a date (something they can easily achieve). You'd think we'd have had them by now when the chairman said in December: "I look forward to updating the market on our 2016 results in early 2017". Has anyone ever tried emailing them and got a response before? I emailed over a year ago about land - do they own any of the land, do they lease it or is it "rent free" on the condition they build quickly. I never got a reply but didn't follow it up. At least the accounting update in February reiterated the trading in line with expectations mantra. Admittedly that's really loose and I do start thinking worst case (e.g. what have they uncovered by changing their over to the Indian accounting). Still, more assets working in a better monsoon season means I'm also of the view that this is a cheap valuation for a company that appears to be doing what it needs to do very well. Do you think the only (but understandable) fear is about the falling wind and solar prices? This seems to be driven by some smaller players desperate to get a foothold in the market before they're left behind. Not sustainable. Some Indian state governments are reportedly refusing to sign power purchase agreements for rates they have agreed to because they now want a better price (the recent auction rate price). I imagine these are isolated incidents by a few state government chancers who think contracts don't matter. But maybe there's more risk here than there used to be. Still... IMO a good company at a great price and I agree that I think (aka guess) we'll get a re-rating when the results are released. I can't imagine anything other than a big increase in revenue reinvested into much higher finance costs to build more wind and solar farms. Then the same next year and so on. Any other predictions?
I don't see what else any of us would be doing differently if we were MYT - raise money, reinvest profit to keep growing as the industry is moving so fast. They had cash on the balance sheet and refinanced for better terms last year so clearly focused on the biggest risk being meeting their repayments. I put a lot of value into whether I rate the CEO and I think Ravi Kailas has always come across really well, with a lot of integrity. Now it's Vikram Kailas as CEO (was a little unsure) but I saw a video with Vikram at the world energy summit trade show (or something like that) where he was talking about MYT having a 50 year horizon. That could be a worry (never see any returns) but I see it as a positive (being built to last). My two concerns are: (1) anything overlooked or missed or fiddled in the accounts that has now been found with moving over to different accounting principles; (2) the idea that they might want to take MYT private at this price and what that would mean for the sp. I think neither are worth the drop. They've already said there'll be a non-cash charge (I think) on the results but the cashflow should be strong as per the TipTV interview you mentioned. I doubt they would try to take MYT private as the sp would surely jump and defeat the purpose plus the investor reputation damage it may do for the future. So I'm invested and have topped up in 10000 share chunks over the past couple of months but I'm into the land of feeling uncomfortable with the amount I have invested in an AIM company now. And the question: what do others know that I don't? On balance the logic is there even if the drops make me doubt myself.
* Don't know why it removed the link when other links are here. Anyway if you search: "ReNew Power IPO" it is the article from the Economic Times India. Title of the article is: "ReNew Power plans IPO to raise up to $600 million" by Mohit Bhalla, ET Bureau | Updated: Apr 07, 2017, 11.18 AM IST
Thanks saintpeter7. Here's the article: http://economictimes.indiatimes.com/markets/ipos/fpos/renew-power-plans-ipo-to-raise-up-to-600-million/articleshow/58056084.cms I think MYT raised money a couple of years ago (maybe from GE) that valued them at $300m so all these valuations are taken with a pinch of salt but $2bn vs. £40m is a bit extreme, surely.
No idea what's been going on here but it's prompted me to register for an account to comment! Is it possible that some of these "sells" are actually "buys"? How else could the share price be up today? And vice versa there have been days recently when there were far more "buys" than "sells" and the share price was down. If someone knows how/why this can happen, please educate me. Did you see the recent article about ReNew Energy raising money that values them at $2bn. Unless I'm mistaken, ReNew Energy have roughly double the capacity Mytrah have (2GW vs 1GW) and yet the valuation is certainly not double.