Western Wind Energy Corp V.WND

Has anyone considered?

[bakken13]

Has anyone considered that maybe $2.60 is a fair offer?

Look at the Q3 report, where the 9-month ebitda was $12,1 million, or $16 million on an annualised basis.

At an 8% cap rate, that supports a valuation of only $200 million.

Now, subtract the debt of $270 million ................

I realise that the projects were running below design capacity because of low wind, and I estimate that it may have been as much as 50% low. I have to estimate, as we are never told anything specific.

So, lets double the annual ebitda to $32 million, and add in $12 million for Yabucoa, for a total of $42 million.

At a cap rate of 8%, we get a value of $525 million, much better.

Now subtract the Q3 debt of $270 million, or if we add in the recent additional $25 million loan, $295 million, and subtract the expected net debt for Yabucoa of $80 million (after grants and tax credits).

The net result is a value of $150 million, or about $2.25/share.

Of course we would have to add in some nominal amount for WND's other projects that are invarious stages of development.

------------------------------------------------------------

Now, if anyone can show where I have made glaring errors, by all means point them out.

But don't just parrot the DAI report, as we don't know the exact terms of their valuation model. So, for me at least, it has no value.

[Firefighter88]

 I am headed to the Sportsmen show !!  I need to turn this off  !!! What ever happens happens !! I expect a fall to around 2. 10 ish ? after Mondays Brookfield failure ! Then Samsung is going to step up and buy WND for 4 !! I have a 2009 Harley and a 2000 DUCATI for sale must be sold by Monday night so I can Buy more WND ! UMMMM One dog , 4 kids, Pick-up MAKE AN

[mlpowell]

i remember an evaluation for wnd which i think was done by an outside co, was $5.40 or $5.60 this is what wnd used for the auction just as they asked brookfield to do i think this is more reliable then yours. 

[peter75]

Where are your offsets, did you factor debt Ammurtisation ,increase in land values, tax creditsYour quick math serves no oneJust proves what you are! you used the same metrics in October to substantiate a 4.oo selling price>

[bakken13]

mipowell, that is the DAI report. It is pathetic that someone would counter my post with such a pointless remark, and who doesn't even know that simple detail. How about countering the numbers? Not intelligent enough to do it? Then quit wasting space on this board. I am still waiting for an intelligent response, might be far beyond the capabilities of anyone here.  

[sweetbabyjesus]

The tangible assets, or book value (land/operating infrastructure) are worth about as much as the debt (400$mil +/-).

[mlpowell]

bakken13 just look up the term valuation means what an object is worth with no other information need pros did the evaluation and values the stock at 5.40 im sure they know just a little more then you!!!!!!

[j_mart]

This post has been removed in accordance with Community Policy