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Reasons for sudden boom?

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rendan
Contributor
I invested at 600 and am really ahppy at the explosion... but any reasons? I also want to ask if we should think of taking profits round about now?? PS. Was so happy when we had the power failures last week.. :P any opinions welcome
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18 REPLIES 18
Not applicable
I bought it at 700 two weeks ago, and I can confirm that I now have more than 55% profit waiting for me. I confirm this based on my triggered Stop Loss at 22%. The current profit is at 83% but the share may fall. One question.... Is IPSA a competitor to ESKOM or they are planning to become a power supplier to ESKOM?
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rendan
Contributor
They are not a competitor to eskom. Read the money web article and the small caps recomendations. Money web did an interview with the ceo and he firmly states that eskom is one of their cients because there is such a huge power shortage in this country. They basically have their own clients and eskom is one of them since eskom cannot handle the demand.
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Super Contributor
it also states that on the 'investment strategy' page on www.ipsagroup.co.uk, their website.
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Not applicable
Does anyone know how much power their plant will be able to generate?
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Super Contributor
yes, first plant 18MW, small plant, the ones in discussion at the moment near Coega will be much bigger approx. 1800MW - same like Koeberg from what i heard, but will first be smaller, but they say this first one in Newcastle is a starting point for them in SA and plan to go bigger as time goes by.
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Not applicable
Thanks Werner, This suggests that they will beable to service about 9000 homes. About a million a month if revenues. Thier current Market Cap would scare me a bit
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Super Contributor
Their first power station will service an industrial company, Karbochem, in Newcastel, they will also sell steam as a by-product. They have a very advanced station and will build more in the near future.
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Valued Contributor
an article in today's FM, and they are not convinced FWIW
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rendan
Contributor
so you think its overbought at current levels? ANd is the financial mail article freely availble on the net?
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Highlighted
rendan
Contributor
Hmmm your definately right. Went and read up on FM website. Not looking promising, however he has discounted the fact that the company has an experienced management team that has had a successful similar operation in south america... The author was a little biased in my view, but was definately required to ask a few questions IMHO
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Valued Contributor
I can't find the FM article on the website as it is displaying old edition, but url is www.fm.co.za. It'll be up in a few days, or buy the dead tree version.

over bought, not my place to say. Was just pointing out the article for those investing (or thinking about) to gather more info.
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rendan
Contributor
It is up now. Go to search and type ipsa. Articles name is "beware the livewire" You think the share price is doing so badly today (down below R12) due to this article?
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Super Contributor
I think so, but i don't know if you guys know that tomorrow the Newcastle plant goes online.
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Not applicable
Yes i think taking profits right now would be a wise desicion. If everyone feels the same way we could see the share drop below 1000 possibly as low as 8. Then i'd buy in again. I sold mine this mornign at 1200, share has dropped 10% since then.
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Super Contributor
what do you expect when they get the newcastle plant up tomorrow?
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Super Contributor
Soos ek 'n paar dae terug gesê het, die MAM 2 ouens (idiote genoem) jaag die prys op, nou be kOk hulle hulself en dit raak tyd om weer in te kom. Ek het 2/3 van my aandele verkoop toe dit so hoog was.
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Not applicable
1370 down to 1120!!! boom went bust.
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Super Contributor
Yes, now we will have a bit good news tomorrow, so maybe the MAM people will try to chase it up again - just like you say SKALA.
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