Best time to decide on Hydropower shares

Chinwi · 1 Best time to decide on Hydropower shares Fri Jun 03, 2016 11:16 am

Chinwi

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Normally Jan-March is the dry season for South-West region and you get very low rainfall.

Due to this reason March end reports of hydro-power companies show very low profits or loss making results . Most of the years, stocks drop and kept at low prices due to this after March reports.

At the same time you get the opportunity to watch level of rainfall in April - May and the start of SW monsoon. Then you can predict future earnings.

If the raining is good and continuous there will be profits in next reports .
If current rains continued during June very good EPS should come.

SupunD · 2 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 2:06 pm

SupunD

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VPEL is transparent on their generation statistics. As the hydro power plants have a fixed cost structure,the changes in the power production simply reflect the variations in the earnings.

http://www.vallibel-hydro.com/projects/erathna-hydro-power.php

Chinwi · 3 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 4:09 pm

Chinwi

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@ supunD , Thanks for the link.

We can get nice understanding -about what I said- by observing the data.

Each year, Jan - March is badly lowest and next 9 months produce 13-14 times of revenue than first 3 months.

Earlier, many people without this knowledge sold hydropower shares at very low prices when they see March-end report. Now I think the investors have identified this phenomenon. Reaction this time is very faint to low EPS hydropower reports.

Yahapalanaya · 4 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 4:44 pm

Yahapalanaya

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Agree with above comments.Good shares are silent.

Now a days many people go behind manipulated shares.That is like gambling.Let's see.

A+ · 5 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 4:55 pm

A+

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Then HPWR, VPEL and VLL should be good.

SupunD · 6 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 6:51 pm

SupunD

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YahapalanayaAgree with above comments.Good shares are silent.

Now a days many people go behind manipulated shares.That is like gambling.Let's see.

This is a golden time to build up a long term portfolio.

cseguide · 7 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 8:21 pm

cseguide

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Chinwi wrote:Normally Jan-March is the dry season for South-West region and you get very low rainfall.

Due to this reason March end reports of hydro-power companies show very low profits or loss making results . Most of the years, stocks drop and kept at low prices due to this after March reports.

At the same time you get the opportunity to watch level of rainfall in April - May and the start of SW monsoon. Then you can predict future earnings.

If the raining is good and continuous there will be profits in next reports .
If current rains continued during June very good EPS should come.

very much appreciate your in depth knowledge in hydro power shares

Teller · 8 Re: Best time to decide on Hydropower shares Fri Jun 03, 2016 9:02 pm

Teller

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Agree with Chinwi. In generally he is true

VALUEPICK · 9 Re: Best time to decide on Hydropower shares Sat Jun 04, 2016 4:16 am

VALUEPICK

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In my view, food, tourism and power and energy sectors are growing sectors in the economy. They are not in the maturity stage either.

We will have all types of opportunities such as trading and investment in those areas during next six months to 10 years.

However, it is wise to target best managed companies which can have strong balance sheets in the future.

In some sectors, we cannot expect same EPS from all four quarters. For example hotels have higher occupancy during first four months of the year and end of the year mainly December. However, this trend can change once we see increased tourist numbers in the coming years. Similarly, hydro power sector can have lower earnings in some period. That doesn’t mean that they don’t have growth. When we analyse companies, it is wise to take yearly earnings than quarterly earnings. In addition, more than EPS, we have to have idea about their future stability, generating cash flow and maintaining strong balance sheets in the future etc.

There are some strong blue chips companies in the CSE. They will generate attractive earnings from their subsidiary companies in growing areas of the economy in the coming quarters and years.

More activities in the coming years in some growing areas mean more activities in their subsidiary companies. There are in a better position than five year before. Their balance sheets have improved dramatically. In addition, they are still growing.

In other words, more tourists, more middle class population and more economic activities in the coming years mean more demand for hydro power and other energy. In addition, some hydro power companies can have edge over others.