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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by deguson Dec 09, 2012 11:18am
67 Views
Post# 20704880

RE: RE: degus , bakken finds religion

RE: RE: degus , bakken finds religion

Yes, Peter, I agree with you when you write.

"... I am wrong a lot on this board"

And usually, the worse your spelling the more wrong you are. Johnathon certainly doesn't need your help to attack someone. He's very practiced. Of course, his defensiveness and lack of factual refutation just gives his target an appearance of relative maturity.

We have a firm offer of $2.50. It is a worst-case backup offer and is responsible for the market price of the shares being where they are now, because it puts a floor to the possible loss a new buyer could incur in the event there are no other official offers that materialize, however remote that is.

The Market, meaning thousands of people, have voted with their money, bidding up the share price to a 10% premium on the only official offer. Much of the money is not dumb money that believes the price will be higher because someone just said it is. It is also not just renewable energy fans that think the company has value because it is a windpower business. Consensus judgments are more often correct, than not. They also tend to be accurate, but conservative, on the price because there has to be profit in the trade or professional arbitrageurs won't do it. Generally, the less available data on comparable sales, the more conservative the price estimate in the Market price.

In the Western Wind case, there are few existing similar transactions for similar assets. In fact, for some reason, reported windfarm sales usually do not disclose price and other terms. That makes it more difficult to predict what an acquirer is willing to pay for Western Wind.

And keep in mind that an acquirer never wants to pay what a company is worth to them. They always prefer to pay less. That is why Jeffs auction process with multiple bidders is a good thing.

 

 

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