I'm not very big on fundamentals usually, but every once in a while I like to get involved with something big for a long period of time and the sector I'm looking at for this attempt is the power sector. I like the story, chances are there will be a power bubble at some stage over the next 5 years and the pricing model suggests that an efficient Power co. has a lot of profit potential.
So here are my questions:
1) How badly are some of these guys going to be effected by MAT? I would think MAT would be soul destroying for all power names. Is there a good reason why they will escape destruction?
2) Within the sector, RPower is currently well below its IPO price. In a sector like this, I would expect ROE's to be competitive in terms of Reliance v Tata Power v Adani. So just on the basis of current valuation - is Rpower attractive?
3) I believe the gas dispute hits one of RPower's major projects? Is this true?
Any guidance on margins and valuations from someone who understands the sector would be welcome.
Cheers.
So here are my questions:
1) How badly are some of these guys going to be effected by MAT? I would think MAT would be soul destroying for all power names. Is there a good reason why they will escape destruction?
2) Within the sector, RPower is currently well below its IPO price. In a sector like this, I would expect ROE's to be competitive in terms of Reliance v Tata Power v Adani. So just on the basis of current valuation - is Rpower attractive?
3) I believe the gas dispute hits one of RPower's major projects? Is this true?
Any guidance on margins and valuations from someone who understands the sector would be welcome.
Cheers.
