Western Wind Energy Corp V.WND

So it seems ..............

[Probability]

$2.50 - $2.75 around January is the highest probability

[Reduce84]

why are you discounting the company by upwards of 50%? ReduceCo2

[peakoiled]

What makes you say that? I think $3.50-$4.00 is more likely based on the NPV of the assets and the 16 interested companies.

[Reduce84]

4 as a base case. he must want cheap shares. we should expect to see other bashers show up. ReduceCo2 - 4-8bucks per share! Hold on to your undies.

[Probability]

Yes I will add on any pullback I already have cheap shares and I have not bashed the company I am low balling my expectations . The $4- $8 is clearly nonsense as Jeff had $4.25 in the high end We know Brookfield got in at $2.25 . Alqonquin contemplated $2.50 and a general idea of what the assets are worth No bash just caution , but dont think more than $4 is possible

[jonathanstjohn2]

I'm not a basher twinkletoes. What Jeff sells WND for has nothing to do with your cheerleading. Your bottom line is his top line. That doesn't seem odd to you oddball?

[jonathanstjohn2]

"4 as a base case. he must want cheap shares. we should expect to see other bashers show up. ReduceCo2 - 4-8bucks per share! Hold on to your undies."   Dude are a guy, a girl, a gay or something inbetween? If I get 4-8 bucks per share I'll admit you are one clairevoyant crossdresser.  

[jonathanstjohn2]

"4 as a base case. he must want cheap shares. we should expect to see other bashers show up. ReduceCo2 - 4-8bucks per share! Hold on to your undies."   Dude are a guy, a girl, a gay or something inbetween? If I get 4-8 bucks per share I'll admit you are one clairevoyant crossdresser.  

[Firefighter88]

Ok ! I just took two 80mg oxy's and a pull off the old pipe ! I am with Reduce84 on this one ! I believe we are going to see an amazing bid for this thing ! Debt or no debt !!! JonathonsJohn2 did you calculate the 14 million from last quarter into your equation ? and then realize there are 3 more quarters of 14 million or more ? Jonathonsjohn2 with all the name calling you

[peter75]

Firefighter why is debt not a factor? Afterall worth is assets over liabilaties I do agree that their is a strong goodwill factor however you mentioned the 14 millon as being a normal thing This is where I get confused 14 millon per q annualised id 56 millon Assume this would trade at 10 x earnings and you have a share price of 560.00 Dont see that! This is where it gets intresting- assume wnd

[Reduce84]

Johnathon doesnt even know how to determine NET PRESENT VALUE and he invested in a company without knowing how to calculate their value! What a welfare loser!

[pandnh4]

Your thinking is correct but I also believe you should value WND at something more like 20 times earnings since that's the expected life of their projects, so this would be closer to $3.20 pps, minus some kind of discount due to reduced tax credits at some point (for any PTC projects).  We would also need to include the net income from their other project currently under construction.

[agrossfarm]

20x earnings? This is not some punter looking to buy 100 shares of stock, so I doubt they are looking at earnings...especially given the tax breaks. When a company looks to acquire another one, they look at free cash flow (after maintenance capex) and they deduct GS&A expenses that would be redundant (the head office for example and bonus payments to the CEO and Directors) and unnecessary. The

[pandnh4]

The philosophy behind the net earnings multiple is based on how many times over an investor thinks the company can sustain that amount of profit.  If a company doesn't pay any dividends, and it's not reinvesting in the business for future growth, then all net income is paid out to shareholders (or the owner).  So the valuation metric I mentioned before is valid because it

[agrossfarm]

We disagree. A business buying a business is not the same thing as an investor buying a business.  In this case, all the expenses to maintain the Vancouver office and pay their salaries, all the audit and corporate legal fees will be saved. No more cozy board meeting that have to be paid and no more option grants to upper WND managment as they will likely take their golden parachutes and move

[pandnh4]

I do agree with you that there are reduced expenses as well as tax efficiencies once a company is acquired by another.  This would probably eliminate the SG&A and tax-related items of the acquired company, so we could determine a new pseudo-profit, which would then carry a multiple and premium from the buyer.

[Nakate]

There is a nice healthy tax credit available for US company's too, Turn key operation that is  immediately accretive to the bottom line. A utility with 500 mil in the bank can look at cash flow and determine whether or not the asset will return better than a treasury, that alone is enough to justify the price.