Western Wind Energy Corp V.WND

Terrible Investor Relations

[energyweb]

This company has incredible potential and its stock price seems very low given that potential, but there is a problem.  While the CEO may be very talented as far as putting the company together, he either has no understanding of investor psychology or he does not care.  He is incredibly condescending on the phone and implies one is an idiot if they do not understand the complexities of the wind business.

The last 'financing update' press release made matters worse and IMO caused the drift downward in price.  By stating that financing would be the last piece put in place, he created disinterest for some and anxiety for others.  He created the perception among many investors that this is dead money until August.  Far worse, true or not, he made it seem that investing in WND is a casino play.  People will read that press release as, "Well, we are doing everything possible to get ready to build and then in late July or August we will find out if we can build.  We will either get financing (stock explodes) or we won't (stock implodes)."

It seems the smart play is to conditionally communicate whether they have financing or not.  If they do, which they should, given the productive capacity of the property and CA renewable energy mandates, they should communicate it.  If they don't have contingencies in place (which seems close to unfathomable), then the stock price should be dropping.  If there are contract terms that prevent such disclosure, then the company needs to find other ways to communicate the strong position of the company.

[dsark]

I agree with you 100%.  I've had a couple run ins with him since I bought in.  They need better investor relations as well as a better share price.

[dsark]

WND needs to hire a someone that can help generate and sustain interest in a higher share price.  It is simple as that.  I mean f***, we have the construction of a 120MW Windstar I project coming in August and it's operation beginning in March 2011 and we are sitting in the 1.50s?  Like what the?  A flagship project of this size and importance should be attracting new

[energyweb]

I have owned this firm based on its positioning in the market.  I bought it in 2007 and have a very large position.  PArt of the problem is that they have yet to install a single turbine.  They have delayed and delayed and delayed.  In their defense, the economy nearly collapsed and the delays are understandable.  BUT, they fail to understand that retail investors have no

[Simon51]

I agree. But if you are holding L-T it really doesn't matter because I can't see how they can fail at this point.

[Xtrykr0]

I am scratching my head too as to why this is happening right now. There has been some minor insider sells over the past 2 days (didn't really amount to much, something like $40k net sells). If WND is true to its word that the Windstar project is on track, I don't see how the recent decline could be due to the fundamentals. I'm definitely a bit concerned at this stage, but nothing to

[bridgejumper]

I am scratching my head too as to why this is happening right now .Must be time for cheap " Incentive " Stock Options ... CheersBridge

[energyweb]

And your last line is the crux of the problem.  If company management was doing its job, investors would not be worrying about the veracity of NRs.

[Laine1]

In lieu of Western WInd Energy providing ongoing details about financing I have been back reading the Invenergy story to try and get an understanding of the timelines. Western WInd's financial update is consistent in regards to the closing process. Invenergy began construction on the Raleigh Wind Farm - slightly smaller in size to Windstar - in October 2009 with a 8-12 month window to full

[dsark]

Someone brought up a good point that it may have been pushed down so that management can issue options for themselves.  Good work Laine and comparing the financing timelines between WND & Invenergy.  I agree with you, however I still give management a grade of F for investor relations.  This stock should be sitting at 2.25-2.50 right now and growing towards a $3.00 pop just

[Laine1]

I am with you...I don't think it is a coincidence that a WND director just picked up half a million in stock options 2 days ago. And I think your numbers are right on the money in regards to SP. Regardless of these frustrations, this is the only company I own with the amount of assets WND has and zero debt - I think it's that financial stability that makes them so lazy with engaging the

[Xtrykr0]

Is there a reference for the the issue of options? Thanks!

[Laine1]

Western Wind Energy Corp Symbol WND Shares Issued 49,011,881 Close 2010-03-10 C$ 1.53 Recent Sedar Documents Western Wind grants options for 300,000 shares 2010-03-11 08:44 ET - Options Proposed Mr. Jeffrey Ciachurski reports INCENTIVE STOCK OPTIONS Western Wind Energy Corp. has granted, to a director of the company, 300,000 incentive stock options at a price of $1.53 per share, exercisable

[Xtrykr0]

Thanks Laine1, I'm not very familiar with options. Wouldn't this dilute our SP? Also, what does exercising the option entail for the director receiving these stock options? Does it just mean he can sell them for $1.53 at anytime, or does it mean he can buy up to 300,000 stocks at $1.53 anytime between now and 5 years? Thanks!

[eljoro]

Very interested to know who received all those $1.53 options.Klaus Andrup, director, exercised his $1.43 options and then started selling them off in the $1.75 range in mid-Feb. And voila! here we are back at $1.43.This is the kind of thing that drives me away from a company. The insider sales optics are awful, the IR is awful, the CEO is arrogant and  disparaging, and the news releases

[dsark]

When someone gets options it means they can buy (in this case 300,000 shares) shares at the stated price (1.53) for the next 5 years.  So for example, it is the year 2012 and WND is trading at 6.00 per share.  The guy who has options can exercise his options and buy his 300,000 shares at 1.53 a share... then turn around and sell them at 6.00 a share... making a pile of money.  (6.00