Catch the Wind Ltd V.CTW

Two Plays

[xsnrg]

I am holding a large position in this company for the following two "plays" as I see it.  

 

Play one is quite straight forward.  It's the "slow and steady wins the race" play where they re-brand, show sales improvements and slowly over time become a major player in the wind industry.  I see this play as 2-5 years out and I see a stock price of $2-10 on it (sorry for the huge range but depending on sales take rate its impossible to judge).

 

Play two is a little more interesting for day traders and people who don't want to tie up their money for 5 years. The technology is out there and its gaining popularity, we can see this by the re-orders we have had.  At some point someone is going to want to do a wide scale deployment on this and then they will look at the cost of the devices ($100K minimum per unit) and look at how many they plan to order (every 1000 units has a $100M pricetag) and then they will look at the market cap of the company which lately has fluxuated between $10-$20M.  At that point they will make a takeover bid for the company (if they are ordering anything more than say 500 units) .  The turbine manufacturers themselves might also just buy out the company for its technology and include it free of charge with every wind turbine they sell.  This play is 0-2 years out in my opinion and they price would be 50 cents to $1.50.  Hunter Hall would ultimately decide if they want to sell or not but an offer or even the thought that an offer was maybe coming would be enough to drive this thing north in the short term.  

 

Those are the two reasons im holding this stock right now.  Let's hope it pays off.