Alterra Power MGMXD

RE:Thoughts on tomorrow?

[BoldForbes]

RDK,

I am not a trader, but a long-term accumulator.  I am more interested in valuation metrics and where I believe the venture is heading rather than a daily move.  If I believe the company is significantly undervalued, I invest more.

I was looking for another entry price this year; if there is a sharp decline I may make another entry, if all facts remain the same.

I believe management might have surprised the market with the news.  Generally speaking, reverse splits are deemed bad - a going concern.  Traders might be trading on the reverse split news as negative.  Eventhough, I believe it was done as a positive gesture. 

There was a good run; traders may be looking to lot in profits before the "scary" market months of September and October.

I believe there is a rebound in the price over the next 30-60 days, excluding a black swan (negative) event.

Some traders may be looking at the balance sheet and asking how the company is going to pay a ~$8M dividend/year.  Where is this cash flow coming from?  The Ross Beaty line of credit?  Not sure I would use debt to finance a dividend.

What about the debt which needs to be refinanced?  If this wasn't locked up and I was the lender I would be asking a lot of questions.  So you are repaying shareholders from accumulated losses before figuring out how to pay me long-term?  Management could offset this with a future proforma showing the future growth.  This is why I suggested there might be a stronger pipeline than has been hinted at.

Management released a very short, but powerful press release today.  The market may be suggesting the need to clarify their change in stance from the 2nd quarter call and previous position which lasted years.

I wasn't expecting a dividend until 2017 or most likely 2018.  So the news might have surprised the market.

It could be that they are getting the exposure they (and some on this board) seeked.  The new followers might not all be bulls...media is media...careful who the audience is.

This is more of the brain dump than answering your question.   I believe this indicates a lot of unknown.

Overall, I believe you hit it => management is "bold" enough to seek growth and try something new.  I want to give Mr. Beaty's leadership credit for this; but I bet it is a team effort.  Mr. Carson has surprised me by going on TV, doing well in an area he seems uncomfortable.  The only way to grow is to get out of your comfort zone.

I would be disappointed if we find out that an insider sold today.

Perhaps management could hold a conference call to clarify the stance and share a new proforma + pipeline update?

This was a "good" surprise to me, even though I do not believe a dividend is necessary.  I would like to know what else is going on up North!

A lot of speculation and rambling,

Bold Forbes