Alterra Power MGMXD

RE:RE:Thank you CSE

[materialsgirl]

RDK;

I share your expectation that green energy will grow and grow.  Also that bigger companies will get taken out by bigger ones.

The question in such an environment is this.  Will this great expansion in production lead to more profits or not?  If production doubles and the new negotiated prices lead to a 50% cut to net margins then the total profits could be the same in 2025 as they are today.

Governments in B. C.  Ontario and elsewhere are driving harder bargains and setting the stage for competitive bids like never before.    Where will this lead us?

See, in wind and solar energy there is no moat to protect anyone.  The output is a pure commodity with zero brand premium.   Furthermore, really big players such as Enbridge (for example) can borrow money more easily and at a 1% lower interest rate than small players. 

The industry will grow.  Some players will do well.  We are all keeping fingers crossed that AXY will be a performer.   We just must be pragmatic and recognise that the 5 or 6 years of history are not encouraging.  This is not my opinion; this is factual, as can be seen by hard data such as the share price, the lack of dividends, the accumulated deficit etc. etc.  I am concerned that telling them "great job" might mislead them and give them a false impression.

Fingers crossed for a turnaround

matilda