Alterra Power MGMXD

RE: RE: RE: RE: RE: Valuation

[neugrufti]

His analysis is off as the debt/interest payments are covered in the financial statements, the free cash flow is sufficient for operations and (potentially) a small dividend if that's the route they want to pursue (again though, as you stated, presuming everything is on the up and up and kosher.

The problem with their financial statements is that they account for things through their equity partnerships, which doesn't make for very clear reading. The $12 million looks like (and he took it to be) it's before debt and interest payments, but it's not. That's not free cash flow either (free cash flow by standard definitions I think amounted to $2 million), that's just net cash provided by operating activies.

On a per share basis, their assets alone (based on their share of HS Orka) exceed the market cap of the company, as long as their operations continue with positive cash flow (net losses due to depreciation of assets are absolutely common in the utility space) they're in good shape. Their biggest risks continue to be power sales tied to the price of aluminum in Iceland, and any loss in operating time as they don't have a lot of margin for error.

Neu Grufti

https://neugrufti.blogspot.com