Stockchase Opinions

Steve Martin Western Wind Energy WND-X DON'T BUY Nov 22, 2007

Operate wind farms in California and have about 35 MW of capacity with plans to move it up to about 200. Acquired older wind farms that operated since the 1980’s and are not as efficient. Prefers others.
$1.800

Stock price when the opinion was issued

electrical utilities
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TOP PICK
Only publicly traded wind power stock he could find. 2 operating fields in California. Older technology and there will be a retro fit in the next year or 2, which will increase efficiency fourfold. Their project Wind Star is the most prolific wind farm in the US and could potentially be worth $200-$300 million when developed.
BUY
Has been in the wind generation business since the 80’s. Operate 2 facilities selling power into the California market, currently generating 34 MW and getting about $5 million a year from that. About to replace the older turbines with much bigger and newer technology. Also have new projects coming on board. Turned down an offer of $280 million for their Windstar assets.
BUY
Wind power has some merit in the right areas of the world. This one is based in California. Their main project is coming on at 120 MW in the next few months. Will be expanding their other ones and have another 400 MW in the pipeline. NAV is $3.30.
COMMENT
Wind generation in California on excellent locations. Have new transmission lines being built in a 2-year timeframe. Large California electric utilities have been mandated to have large quantities of green power in a hurry. Expects this will give them further development of their existing properties.
BUY
US wind company. Have been able to get a 30% tax credit from the US government which dramatically improves the economics. Expecting the systems to fully generate and produce visible earnings and cash flow in the 1st and 2nd quarters this year. Could be a takeover candidate.
WAIT

Not in a fund but owns personally. Owns because of takeover talk. Proxy fight by investors trying to turn it around. Stock is up because it is worth at least $2.50 and maybe $3.25 on a take over and there are 3 interested buyers. Expect to have sale competed within 3 to 6 months. Challenge because of very strong CEO. Wait for AGM.

RISKY

There are a number of companies kicking the tires trying to assess the benefits and value of their various properties. He thinks the stock, as a guess, should be sold between now and the end of March at approximately $3 or better per-share. Pretty good speculative opportunity.