(GKO) Greenko Group

Great to see yesterday's news that the big boys are backing this stock again. Hopefully any potentially spare stock has now been mopped up and the SP can move forward to reflect the value of the asset base. IMHO

Sorry if the links in my last 2 posts were bad. I've tested this one and it works OK:

http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

Sorry - that link doesn't seem to work. Try this one:

http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

Article from last year, remains just as relevant today. Since this was published Hurricane Sandy caused major flooding in NYC; more recently atmospheric CO2 has climbed over 400 ppm. The article makes a compelling argument for selling fossil fuel companies and investing in green energy. Companies such as Greenko and Wasabi Energy look well positioned to benefit from the end of the illogical "green discount" on their shares.

http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

Yes, agree with you - short term target surely has to be 200 to 300p with more over time. Not sure why the announcement came out on a Friday afternoon, but hopefully the press will still pick it up?

The share price has been, IMHO so very undervalued/ignored for a long time but hopefully things will now be on the move. Sadly I only saw this announcement after the market closed but will be buying on Monday morning to hopefully have a very quick 100% return.

I now understand why such high profile Board members were appointed recently.

We done to the Indian management for driving things forward so well when so much else in the world is going backwards.

Jumped in late at 137p with some available funds - this should surely head over 200p once news digested?!

£100m investment at 260p, a HUGE premium to the existing share price. Unbelievable!

http://www.investegate.co.uk/greenko-group-plc--gko-/rns/proposed--100-million-investment-by-gic/201303151508381441A/

And away she goes.

Cheers matey!!!

Anyone know why the big drop? Been on my watch list for a while and now looking tempting

Profit up 124%, bought 8 hydropower plants, 500MW under construction... sounds pretty good.

Any views?

got £4k

Is this stock worth hanging with or is it "gone with the wind" ! Any views?

Reality check for alternative energy
By Graeme Davies, 25 January 2012
http://bit.ly/z94Bm3

Why has the share price fallen so steeply from £2.25 to £1.20 given the potential for renewable energy in India.

Must be a buying opportunity - any views

DBNO
If you look back in the posts you will see I took this as a punt a couple of years ago. Like you and having visited India a few times I figure an established and expanding green energy company out there should be a good bet. It certainly paid off and I was lucky since I am not a sophisticated investor, just go with things I like the look of. A couple of previous posts gave a detailed assessment of the company and raised some concerns which may make more sense to you than they did to me !!! What I fail to understand though is why the price has droped following the news of the tie up with GE on the windpower. Surely this should be great news ? I will go back in at some point soon. It must be a better bet than some of my previous punts (ie russian salt company - lost a little money when they delisted, ukranian cheese company - made a little money)
Hope we can both celebrate next year on GKO.

A company providing energy to a nation without enough energy seems to warrant further investigation. Particularly as the Indian government is keen for clean energy and the share price has been moving downwards whilst news seems to have been fairly positive.

However, I haven't done in any detailed research or had a proper look at the figures. Subject to that, I may well be joining you before Christmas.

DBNO

Made a tidy little sum out of this. However sold out my remaining holding a couple of months back. I like GKO for several reasons and fail to understand why it is going south ? With the recent news I would have thought the price would jump .........but what do I know. Anyway I plan to buy in again before Christmas

Anyone else keeping an eye out for this one?

General Electric backs Greenko venture
10/10/2011 Robert Tyerman
http://www.growthcompany.co.uk/news/1660833/general-electric-backs-greenko-venture.thtml


US group General Electric (GE) is to put £50 million (£31.3 million) into Indian clean energy concern Greenko's new wind power venture. Industrial conglomerate GE, a leading international turbine maker which has built up a $6 billion renewable energy portfolio around the world, is putting the money into Greenko Wind Power Private (GWPP), to help develop the first 500 megawatts of a planned gigawatt (1,000 MW) of projects across India.

Provided AIM-quoted Greenko (GKO) finishes reorganising its wind energy division and commissions its Ratnagiri wind energy project, GE will make its investment in two tranches, $25 million for equity shares in Greenko Wind Power Private and $25 million in the new venture's convertible preference shares. Under the deal, GE will be entitled to participate in any public flotation of GWPP.

However, Hyderabad-based Greenko (GKO) will have the right to buy half GE's GWPP stake ahead of any such float. Alternatively, within a year of a GWPP float, GE can sell its entire stake to Greenko for cash at a price calculated 'by reference to a mutually agreed internal rate of return'.

Anil Chalamalasetty, chief executive officer of Greenko, which nearly trebled pre-tax profits to £12.7 million in the year to March, and raised £50 million in June at 225p, hails the GE deal as 'a further step in establishing Greenko as a leading energy provider in India'. Highlighted by Growth Company Investor last year at 142.5p, the company's tightly-held shares have proved volatile, rising to 245p before falling well below June's funding price.

Now 155p, up 3.5p this morning, they value the company at £219.5 million and offer speculative medium to long-term prospects to sector aficionados.
Tags: AIM market, Anil Chalamalasetty, Clean energy, General Electric, India, Wind power

Sector: Electricity

Companies: Greenko

Profits surge at Greenko
19/09/2011 Robert Tyerman
http://www.growthcompany.co.uk/news/1656058/profits-surge-at-greenko.thtml


Indian clean energy generator Geenko Group (GKO) is set on fast expansion after boosting annual pre-tax profit 188 per cent to €14 million (£12.7 million). Steered by chief executive officer Anil Chalamasetty, the AIM-quoted company, which is involved in wind power and hydro-electric projects to supply India's shortage-ridden fuel supply market, increased turnover 130 per cent to €44 million in the year to March.

Hyderabad-headquartered Greenko, which raised £50 million at 225p in June and has a supply agreement with US wind turbine maker GE, ended the financial year with operational capacity of 183 megawatts with another 124 MW due to come on stream in 2012, with a pipeline of 1.6 gigawatts (1,600 MW) and a target of operational capacity of one gigawatt by 2015. The company says India is so anxious to close a looming 190 gigawatt electricity supply deficit that regulation and pricing arrangements there favour the projects it is pursuing.

'We have no need to go to the Ministry of Environment, which saves two years', says Greenko, arguing 'we have a low fuel risk, no offtake risk and no permitting risk.' The company, which claims this environment enables it to lock in 10-to-15 year projects with a 20-to-25 per cent internal rate of return at parity supply prices, with fixed costs up front and 'no need for subsidies', says it has its 2015 capacity target funded already and is looking at further funding, mostly debt but some equity.

Highlighted by Growtth Compay Investor at 142.5p last year, Greenko shares have swung between 151.5p and 245p over the past 12 months and now trade at 160p, down 1.5p this morning, valuing the company at £227 million. They may prove volatile, though the long-term fundamentals look potentially encouraging.



Tags: AIM market, Anil Chalamasetty, GE supply deal, Indian electricity, Windpower

Sector: Electricity

Companies: Greenko