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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by impegaon Jul 18, 2012 4:57pm
188 Views
Post# 20128124

RE: RE: RE: RE: RE: OK

RE: RE: RE: RE: RE: OK

The company and stock price is being negatively affected by the headwinds of a very poor macro-environment.

As Jeff stated in the CC, there is a disconnect between the market value of the shares and the actual value of the assets.

The book value and NAV of the company are much higher than the current stock price which I believe creates an opportunity. Over time the shareprice should increase to reflect the value of the company's assets.

The bridge financing is at higher interest rates than  the project debt so can be classified as high interest debt would you not agree? The highest interest debt will be consolidated as you have stated.

The shareprice dropped on the grant news because of the shortfall and the problems it has created. The negative aspect of the shortfall far outweighed the positive aspect of a significant $78 million equity contribution from the Treasury in the minds of investors, thus the sell-off.

The grant received, however is still a huge positive for the company.

To put it in context, the company would have had to issue 62,400,000 shares at $1.25 a share to raise $78 million (100% dilution).

The company has a much stronger balance sheet now and is in reasonably good shape going forward.

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