RE: RE: RE: Locked and loaded You are not demanding enough, Prob.
Most WND shareholders would sell their Brookfield, pushing the price down and the increased BEP share float from the deal would make each share worth less. The price decline in BEP stock would happen as soon as an acceptable offer was made as arbs buy WND and sell the offsetting amount of BEP. BEP could easily go to $28 and there is no way WND is only worth $2.80.
Why do I say that?
Remember those foreign yield investors that Jeff mentioned a while back? They are happy with solid infrastructure that can provide them with an 8% return. You want to know the value here?
Go to the last Q report, find the 9 month EBITDA number and annualize it by multiplying by 1.33. Then divide it by 0.08, then divide that number by the number of WND shares, add 60 cents for the discounted WND tax benefit and then substract $3 in debt per share.
The resulting value is WND without Yabucoa and without any other project under development.
Value estimates for Yabucoa vary but a logical and conservative range is between 1.50 and $2 per share. Throw in the less developed projects as a bonus and use $1.50.
Want more conservative, use a 10% cap rate instead of 8%. That gives the buyer a very good deal.