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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by agrossfarmon Jan 23, 2013 1:39pm
134 Views
Post# 20878852

RE: RE: Why the price is what it is

RE: RE: Why the price is what it is

You are probably correct, Bakken.

Few pros are interested in development companies, especially these days. Whether it is mine exploration or pure renewables development, the Hedge Funds are absent until there is some predictable gain involved and a limited amount of time.

Risk Arbs are the ones willing to place a bet because the probabilities are in their favor, as they are here, which is why I increased my position this week. Just the fact that Brookshire thinks it is getting a good deal buying everything at 2.50 tells us it is worth more than $2.50. Being willing to pay the same 2.50 for everything but Yab  confirms that and says that, for them, 2.50 without Yab is still a very good deal.

And we can predict that it would be worth around that, or more, to other companies, so our downside risk is limited at these price levels. Serious investors are not gamblers buying lottery tickets and betting on chance, but they are willing to take a position even though it is not a 100% "sure thing".

Serious investors (as opposed to traders) weigh risk and reward based upon the fundamentals and try to take advantage of market mispricing to profit. Corporate bidders, who are the only Market for WND as a whole, will be the final arbiter of VALUE, regardless of whether an individual is only willing to buy shares at $2.52 or whether they have an article from a year ago that says the company is worth $5.50.

It is interesting that $5.50 minus the debt per share equals ~$2.50.

So we think that WND assets are actually worth OVER $5.50, but that the existing debt means we will get about $3 per share less than the per share value of all the assets. Some of the posters here have never come to grasp this. But it is the reality.

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