Member Info for parkside13

Oh I hadn't pencilled them in. So I guess ML have a bit of a heads up that they will be bad but not as bad as so they have to slash the share price target. Well I guess it wont be good news but if it is better than the market is (patently) expecting they might go up although I'm just not sure who would take a punt on buying them when the whole edifice is just so poor. Maybe the brothers bozo will make an offer for the bit they don't own and retreat to their palace to play with their debt. Who knows but I will, as a very cross shareholder, watch with interest.

Its quite nice to see the shares here. I have just bought some more having got 4403 in the IPO. It is a well run company - Eric Machiels is a very good guy - balance sheet is fine and they have a whole load of onshore wind coming through the planning system. Technically they are very good at landfill gas and the yield is well covered and at 7.2% odd is about as good as it safely gets in the UK and backed by 50% UK Gov whilst the rest will be single A credit. Cost base is stable too. So all in all an excellent opportunity to lock into a high and rising yield with a bit of growth.

Oh and yes not a lot has changed fundamentally apart from they have had further water issues at power stations, the oft touted (and built into the share price to a degree) refinancing has not happened (yet), the yeti brothers keep talking about desalinating the Middle East, there has been a (small) fire at Stanlow and the Rupee has fallen out of bed. Apart from that everything is ticketyboo in the land of the brothers idiotic.

Why what happens on Monday? Merrills boys are apparently loaded PA and have always been out to lunch on the price objective so the fact that they are cutting is symptomatic of something going wrong. Maybe the brothers bozo have managed to build a power station without a grid connection now? Mind you they would tell us if they had so who knows what disaster has befallen them this time.

Trouble is there is limited appetite for wind assets. Look at the WIND share price which despite a load of good news hasn't done that well. In mitigation to Infi it is a much better bet than Greencoat which is just horribly expensive.

It is amazing how many people post on here pointing out that they "got out" at a share price materially higher than the current share price!! Its a sort of valedictory thing I guess. Well I bought these shares at 135p and sold the bulk at 120p and lost a lot! I kept the ones in my SIPP for reasons that are still muddied by my annoyance at the overall governance of the brothers idiotic. In truth I don't know why I kept them. Simple fact is they are hugely indebted and frankly overgeared, they cannot manage a power project to save their proverbial lives - building coal plants with insufficient coal and water. That is like building a house without a roof and toilets! Then footling around with stupid announcements re de-gearing or re-financing and then musing about investing in desalination plants! So they run it like a private company, no regard for the minorities, no overall strategy, bad website etc etc. In short I cannot for the life of me understand why I own shares in this heap of dung. I normally invest in sound businesses. Hey ho maybe the brothers idiotic will prove me wrong!

Yes it is, give or take, as low as it has been. There has been no news from the brothers idiotic for some time which is either that are in deep pooh with this thing's huge debt pile or they will announce some grandiose scheme to refinance. Else they can't be arsed to say anything which is possible. The Hydrodec thing is irrelevant to Essar equity value by the way. So in the grand scheme of Essar the answer is who the hell knows!!

Ask Bhajanbuffet. He professes great knowledge on the brothers idiotic who run this heap of uselessness. Bhajan??

Well I sold most of mine at 120p having bought at 135p. So I lost a lot as I had lots of shares. I've still got some in my SIPP. My mistake was that the valuation looked (and could still look) okay. But the buffoons who run this can't deliver to save their lives, don't care about irrelevant minority investors and simply have no strategic vision, or at least one they can communicate. There was a fire at Stanlow last week albeit minor which hasn't helped. But simple fact is Essar is badly run, overgeared and can't deliver. Apart from that its fine!!! Is there any equity value at all. Dunno cos it's so badly run and can't communicate.

This thing will go horribly wrong next year. Overpaying for assets - £2.3m per MW which is crazy despite high load factors - and no discount management ability as no liquidity when invested. They are raising more cash not to enhance existing equity but to dilute it by overpaying for assets. 80p by end of next year - if they are lucky!!

I wonder if this excuse for a company will ever rally?? Or maybe he debt is overwhelming it finally? It really is a depressing heap of corporate governance rubbish.

It is true that Essar is way overgeared and the operational cashflows are simply not coming through quickly enough. Are they going bust well the interest cover is just about ok assuming no hideous cock ups but they really need to start selling some assets to reduce gearing. That could impact favourably on the share price. But they have made a string of poor decisions and UK investors absolutely hate them for selling down at 480p.

Mind you look at Greenko's rerating so I suppose if Essar did say sell down some assets to substantially reduce gearing and improve EPS then it might move sharply as the market is pricing in terminal indolence! But I'm not holding my breath as they haven't yet shown any desire towards shareholder value.

You are, I fear, correct.

Reflective of a company run by rich fools. Too much debt and struggling horribly. Idiots!

Oh my god they haven't finished their bloody coal power stations and are already eying the next balls up. This is what I mean. Stupid, irrelevant announcements that detract from what they are supposed to be doing. The IR guys need to focus them on talking about what they are supposed to be delivering rather that some fanciful plan to recycle seawater. Ridiculous.

Yes it is. It is overgeared and compounds this by being totally inadequate at delivering its capex on time. The whole thing is more and more surreal. Come over to the FTSE100, flog a minority stake to unsuspecting institutions based on the whole "India needs power" thing, then get hit with a tax bill buried in the prospectus (which is never going to happen is it), gear the bejesus out the balance sheet and then fail miserably to hit the main targets for delivery of the power plants. Then issue a series of weak RNS's around debt restructuring in order to distract from the fact that you are simply not delivering returns to long suffering equity holders. Oh and run it like they own it - which of course they largely do. As I have said - hopeless! It's a sort of Indian example of how not to invest in a Russian Company - run for the oligarchs not for the poor minority shareholders.

Well Essar has geared up to build a load of assets - in this case power stations. It is just that when you gear up equity investors need to see a return on their equity (and a higher return given that you are gearing them up so much) as quickly and as efficiently as possible. In this case they have geared up and made a complete cods of it. Power stations without enough coal or water running at 40% load factors is just crazy. 1 you cant repay the debt and 2 the equity holders don't see any improvement in return for the risk they are taking - well not at least in their lifetimes! So that is what I mean about the thing being run like a personal fiefdom and it is simply not good enough for a FTSE 250 company. The equity is mired and is going nowhere barring some significant event - asset sale, huge refinancing etc. But a complete cods probably sums it up.

I'm not convinced by the politics argument. They have built power stations, haven't secured enough coal or water, screwed up on tax and constantly talked about low cost $ bond issuance (nothing has really happened) and the net impact is the shares have fallen from 480 to 117. So pitiful. Politics may not have helped but it is not run like a proper fates 250/100 company at all. I still own shares but they need to sort themselves out.

Well I did say that Grangemouth wouldn't shut! Mr Bhajanbuffet you need to toddle down the offices of the "brothers useless" and ask them on behalf of their happy band of UK shareholders for a refund of the 480p listing proceeds. Honestly I seldom get angry over a share but the corporate governance of this thing is just useless and if it isn't useless it feels useless.