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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by agrossfarmon Dec 10, 2012 1:27pm
120 Views
Post# 20708335

RE: One other question

RE: One other question

There are NO tax credits.

This has nothing to do with Govt. subsidies at this point. And they are not CREDITS.

The tax benefit, as I explained before, is a Net Operating Loss (NOL). Essentially these are past losses (for tax purposes) that were not taken because there were no profits to deduct them against. They continue to exist and are carried forward to be used by whoever owns them. They can be deducted from taxable income whether the business is a wind farm or a lemonade stand. To repeat, NOLs are deducted from income. The higher the tax rate, the larger the benefit.

They will not disappear, but they are only useful for a company with US income subject to taxes on profits.

If the Market is stupid and sells WND shares if/when irrelevant renewable subsidy programs are cancelled in the US, it would be an opportunity to buy more shares of WND at a lower price. That could happen because the general market has not educated themselves on what the WND tax asset really is about, judging from the lack of understanding of the longtime shareholders on this board.

Keep in mind that these NOLs would fetch about 15% of the total value if sold on the open market (which I have been told, could be done). That is $45 million or about 60 cents per fully diluted share of WND.

I hope that more than answers your question, Prob.

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