Summary of Jacob Securities Equity Research paperAlthough initial coverage from Jacob Securities on WND commenced Mar 2010 I have enclosed a summary of key notes for those who may not have seen the report.
I am only providing this as REFERENCE and can't verify whether all facts are still applicable or not. (unfortunately do not have a soft copy of the report)
The summary page from WND website would still contain the high level summary points
WND currently has 2 online wind projects - Mesa 30MW and Wind Ridge 5MW - acquired in 2006
WND has purchased and leased additional land in California and Arizona to bulid wind farms (three farms in progress but based upon the MD&A there are delays here as well)
WND has entered into 5 conditional land purchase agreements in Ontario for 50 MW of solar energy projects.
WND's land base in California and Arizona covers more than 24,000 acres (mostly leased but do not know leasing arrangements sorry)
Under the ontario power authority's standard offer program, renewable energy projects that are 10MW or leass can interconnect with local distribution system, provided there is sufficient capacity. - have submitted applications for interconnection and transmission service for five proposed 10MW solar energy projects and conditionally secured land for five projects - projects have apparently completed connection impact assessments, and zoning applications have been submitted
Power Purchase Agreements (PPAS) are expected to be obtained in 2010
Catalysts to cauge WND progress:
bridge financing
PPAs
Transmission
Senior Debt
Break ground
estimated holdings of mgmt, directors and insiders holdings:
total 2,229,860 or 4.8% (don't believe this number takes into any changes over the last few months)
total outstanding 52.6M
Jacobs - one year target $3.50 (includes ITC bridge financing) - Speculative Buy with High Risk with potential upside of 20% per annum - soleley based upon pre-positive cash flow opportunities
KEY risks:
Resource - wind power is highly variable and seasonal anc can fall short of the previously measured capacity factcor resulting in lower revenues versus a largely fixed cost structure - magnifies losses
Additional capital requirements - as more projects proceed through to development, additional funds will be required. There can be no assurance that the additional capital or other types of financing will be available when needed or that if available the terms of such financing will be on terms favourable to WND
Foreign exchange risk- depreciaton of CDN $ against the US$ will translate to losses
Jacobs - one year target $2.50 (withough ITC bridge financing)
Maybe we should hire Bette Midler to sing "Wind Beneath my Wings" for Jeff