Alterra Power MGMXD

Value Extrapolation

[R_J_]

I have no idea what I am doing [LOL].
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Currently Alterra has 58.31 million shares
At today’s price of C$5.28, that implies a value of C$307.87 million.
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Our major shareholder, Marin Katusa, was discussing the purchase of 23% of a similar company, Eren Renewable Energy,  by the French oil company, Total S.A., on September 19.
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Let us take a look.
Total S.A.’s investment into Eren Renewable Energy:  US$258,000,000.
Percent Acquired:  23%
Implied 100% Valuation:  US$1,239,130,435
Current & Near Term Production Capacity:  650 MW
Valuation per MW(US$/MW):  US$1,906,355
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Alterra’s Current & Near Term Production Capacity: 786 MW
Implied Alterra Valuation:  US$1,498,394,649.
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Implied Valuation in Canadian Dollars: C$1,883,541,606.
Divide by the Number of Alterra shares: C$32.30 / Share.
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Therefore, at C$5.28 / Share, Alterra is currently selling at 83.6% below its current Implied Valuation.
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At its Implied Valuation price, Alterra would be a 6.1-bagger.
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RJ

[materialsgirl]

RJ; Assuming that the math is correct, the formula misses the point. If we all agree that AXY management is incompetent (and it is true) then the amount of production of energy is meaningless.  They have been selling electricity below cost and they do not seem to have any intention of changing.  That is the core point. They could have revenue higher than TD bank and still be