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Bullboard - Stock Discussion Forum Western Wind Energy Corp V.WND

TSXV:WND - Post Discussion

Western Wind Energy Corp > making things up
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Post by agrossfarm on Oct 02, 2012 12:27pm

making things up

It is interesting to see people's opinions.

Thanks to all who have suggested a price, with more thanks to those who give the detailed reasons. That is the only way we have to evaluate the projections.

Without some kind of rationale, any rational person will ignore a pure guess. 

What counts for a buyout of the projects, whether operating or under development, is their cost and the return. Nobody has to build one of these renewable projects and, as those who are honest know, the only reason that companies are building them is because they are subsidized. They are not economic without the subsidy, whether it is up front cash, tax credits or an overly generous power offtake agreement with inflation pegged escalators. 

But once you get a cash flow (presumably $2.5 billion over 25 years) revenue minus opex expenses, you still have to discount that cash flow to arrive at NPV.

I am curious what rate of return you think the potential buyers will be using, and why.

My first inclination if I were a buyer would be 15%.

Comment by Probability on Oct 02, 2012 12:41pm
Alternative sources of energy must be usedWe will see what is offered soon enough Does any poster have access to the data room -rhetorical? >
Comment by Probability on Oct 02, 2012 12:44pm
thx for the great balancing postsblind biasis kill money>
Comment by Probability on Oct 02, 2012 12:45pm
thx for the great balancing postsblind biasis kill money>
Comment by Probability on Oct 02, 2012 12:45pm
thx for the great balancing postsblind biasis kill money>
Comment by peter75 on Oct 02, 2012 12:46pm
read the financials on brookfield renewable energy These  projects turn out to be cash cows when you hit scale along with reasonable debt levels
Comment by impega on Oct 02, 2012 12:57pm
Don't forget the California mandate of 33% of energy from renewables. Hard to quantify but adds value!
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