Epiphany I have been overly thinking about some of the moves the past few days in my little "free time."
There is an old saying that the person who you take to the dance isn't always the one you leave with.
Alterra is growing up from an explorer to a construction to a actual production company. It is still growing and will still have many aspects of its youth, but now in adolences it is taller, stronger, wiser...still needing parents, mentors, guidance; but the solid foundation is formed.
With some of the "financial engineering" including the consolidation of shares (reverse split) and dividend signals the company is, in its new stage, trying to obtain more powerful financial backers. The retail investor, private equity, smaller guys which brought them this far (I am assuming) (ex-Mr. Beaty - he is a big guy) might not have the financial means\resources to take Alterra to the next level. Thus, the company is forced to leave the "dance" with another date.
Finding larger financial institutions does make sense as their deals require banking, equity, etc. Think about construction costs, long-term financing of power plans, and knowledge resources and contacts for tax credits and other issues.
Further, larger financial institutions can support a higher valuation which may lead Alterra to either acquisition via merger, via purchase of other power plants, hire and retain key staff (stock options), etc.
I have nibbled on shares since the shareholder meeting, but then I didn't want to chase up. I was intending to nibble more if the US shares (that's my side of the border) went back into the mid $0.40's. After the past few days, I am not sure that is going to happen.
I aprpeciate the comments on this board; it makes me work through my own thoughts.
Over the next 30-60 days I believe I will be seeking another entry point for more "nibbles" , perhaps a meal.
Bold Forbes