Could this article published Nov 8th be the cause. Note the paragraph that reads: The Ruias may sell a stake in their U.S. steel unit or in other group companies including Essar Energy Plc (ESSR), Essar Ports Ltd. (ESRS) and Essar Shipping Ltd. (ESL) to reduce debt at Essar Global, the people said. Full article on url http://www.bloomberg.com/news/2012-11-07/essar-said-to-plan-4-8-billion-debt-refinance-corporate-india.html
Mike, I think you will find that the drop is concerns about the indebtedness of the Company and that is why, in my opinion, at the interview posted by dealer Tuesday 01.31 that the directors are putting the emphasis that they will focus on debt reduction at Essar Oil (IMO to address the market's concerns). I have recently reduced my holdings, for I had a larger investment in ESSR than I considered prudent because of the possible negative market reaction as regards to progress or no progress as regards current and potential debt reductions.
http://www.steelguru.com/indian_news/Essar_Power_Mahan_project_idling_for_want_of_coal/285977.html
http://www.rediff.com/business/report/oilmin-wants-ril-essar-pricing-plan-scrutinised/20120926.htm
I was very surprised (but pleased for you - and well done!) to note on another bulletin board yesterday that you had sold half of your Essar shares at 1.25 and are waiting to buy back at a dip hopefully. I sold half of my holdings and am looking to buy back what price are you expecting the SP to fall to on this run for your guestimate is streets ahead of mine as far as I can see.
Tax Man - apologies for my error in my previous post, the Court Hearing is today, I got my dates muddled up. I am hoping for this tax matter being resolved one way or the other at this hearing for the procrastination appears to be having such a negative influence of the share price.
Mike29 you asked if the RNS impacts on the SP - the answer is no for it is issued as a statutory requirement to record the fact that the companies shareholdings are being held under one umberella rather than two! You also ask about future likely trends and, particularly having regards to jalaram191's observations gthat has unnerved you. Firstly I take jalaram191 on board and those with their heads in the sand should read them carefully again - he doesn't make things up in my opinion and is subject to flack he does not deserve. I posted url http://www.4-traders.com/ESSAR-ENERGY-PLC-6167911/strategies-strategies/Wait-the-breakdown-of-GBp-100-level-31891/ the other day hoping that somebody, who understands charts, would clarify the reasoning behind the trends. Having noted the wording: This level could give an opportunity for a technical rebound, I wonder if this is a technical rebound that is happening at the moment and I have reduced my holding by half today just in case. Mike, this is a speculative share, albeit a large company, it has huge debts. In court tomorrow I hope things go our way of the tax and interest claims; I am not convinced that a negative result is already evaluated in the current share price hence my selling some of my shares today for like you I am a little concerned, particularly having misjudged the market when I only recently increased my holdings! I do hope that somebody will enlighten us on the relevance of the chart .
Mike: In a nutshell: No acquisition or disposal of shares. This RNS is to report an event changing the breakdown of voting rights Due to a company reorganisation, Capital Research and Management Company ("CRMC") and Capital Group International, Inc. ("CGII") will no longer report relevant holdings under management separately. Instead the relevant holdings under management by CRMC and CGII will be reported in aggregate by The Capital Group Companies, Inc. ("CGC"). It is solely for this reason (and not as a result of any additional acquisition or disposal) that CGC is reporting this aggregated holding.
I read the same article as jalaram191 and have now tracked down the url so that you can read the article for yourself. http://www.business-standard.com/india/news/navabharat-acquisition-is-transparent-says-essar-/485514/
Your first post states: Many thanks for your email and interest in Essar Energy. from whom was this email received from? If not confidential, would you be willing to post details of the email you sent to provide a complete picture please? Incidently how long did it take the sender to let you have such a detailed and balanced reply?
Special Resolution 15. Authority to purchase own shares should surely help stop the drop in SP which I reckon could be caused by this item http://www.4-traders.com/ESSAR-ENERGY-PLC-6167911/strategies-strategies/Wait-the-breakdown-of-GBp-100-level-31891/ lets hope that their target projection is never achieved! Not knowing much about charrts I have observed that circa 100p has held up well so far. I continue to hold this share in the hope that news items will soon turn in our favour.
I agree entirely with Bhajanbuffett. he has summed up my concerns about today in a nutshell. Furthermore, I decided to go back into the water and doubled my shareholding, purchasing at 103.30, since I am now of the opinion that we could well have reached the water shed - I hope I am right; but my gut feeling after today's court hearing, was that I should increase my shareholding now rather than later, albeit that I accept that this is a highly speculative share as demonstrated by the contrasting opinions imparted by members of this board.
Here is the Url to today's court order: http://courtnic.nic.in/supremecourt/temp/sc%202021612p.txt that reads: UPON hearing counsel the Court made the following O R D E R | Issue notice limited to the question as to whether the petitioners would be |liable for interest for the period from April, 2008 onwards on the tax |amount. The prayer for interim order will be considered on the next date. |List the matter on 12th September, 2012.
Here is the url to a news story on today's case: http://www.moneycontrol.com/news/business/essar-oil-seeks-5-yrs-to-clear-sales-tax-dues-to-guj-govt_750711.html It is encouraging to note that: The Supreme Court has said that both parties should decide if installment payment is feasible. The apex court is also to consider the issue of interest on sales tax on September 12 The Supreme Court Website itself has yet to be updated on the hearing today so unable to make any commercial decision on the outcome of today's proceedings yet.
I think that it is the uncertainties that is causing the drop in this share price making potential investors very, very wary. I personally will await the result of the tax case before I top up again. I suspect that this share could easily fall to just below £1.00 again but, if things go well in Court, although I accept that I will NOT be increasing my holding at the bottom, I am prepared wait and pay a premium to have the assurance that a major hurdle has been overcome and that a light can be seen at the end of the tunnel! Does anyone else share my concerns and what stance are they taking?
SUPREME COURT OF INDIA Case Status: See url http://courtnic.nic.in/supremecourt/temp/sc%202021612p.txt - now listed for 29th August.
Essar Energy investors told to vote down Indian billionaire chairman see url http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9490960/Essar-Energy-investors-told-to-vote-down-Indian-billionaire-chairman.html
Pudds, the verdict must have an impact on the share price. I continue to hold but in the UK I do not think that a court would rule that a debt should be paid in instalments it is either due or not due in full, lets hope it is different in India . As per the interest payable, that is subject to legal arguments having regards to all the circumstances and ESSR must have a 50-50 chance.
The Essar Oil Q1 loss at Rs 1400 cr appears to be also impacting on the share price. I read the second RNS issued today but this article sums it up perfectly: http://www.thehindubusinessline.com/companies/article3771193.ece
Mike this is the information they don't like: Essar had underlying gross debt (excluding working capital loans) of $6,217m and underlying net debt of $5,822m, down from $6,273m at March 31st, "which is in line with our plans", the group said. While underlying net debt was broadly unchanged, the improvement was mainly due toe the 10% depreciation of the rupee against the US dollar.