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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Post by anotton Jul 11, 2012 12:46pm
350 Views
Post# 20102678

The grant, low volumes and share price

The grant, low volumes and share price

From Lawrence Casse in yesterday's article (referenced below):

Western Wind will be able to meet its obligations from internal operations, Lawrence Casse, a company spokesman, said in an interview. “Obviously it would be better to have it than not to have it, but we do think that we’re going to get it.”

As compared to Jeff's comment (same article):

Western Wind expects to receive the full grant. “The government has denied people their full amount and people have gone back and been successful in increasing the amount,” Chief Executive Officer Jeffrey Ciachurski said in a phone interview.

I think this is just a case of optimism versus realism.  In reality, WND can move forward with the free cash, but their is always optimism that more will come along.  As for the share price, I think a number of people bought this on a quick buy hopping it would pop, and were dumping regardless of price as it was meant to be a short (probably levereaged) buy.  The last couple days of volume show that clear out (and the subsequent dump).  The sad reality is that there all the institutional investors who are interested have had a chance to pick this stock up, and most retail investors won't want to touch this until it has steady income, no negative EPS and probably a dividend.  Until that time, there are some set shareholders, low volumes and no real way to get your money out of this company at FMV - although you can always take a discount and sell to someone who probably has all they already want (hence the discount).

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