A lot of investors of Western Wind Energy are questioning why the share price is so low and is still under AQN's $2.50 bid. Honestly, it doesn't make sense, but if you take a look at other "undervalued stocks", like gold mining producers, oil producers, etc, a lot of stocks are not moving as how people are used to when the market was well and not focused on financial crisises. However, I still believe as long as we get good enough news, the stock price will move in a spike with only 62.M shares in he float (and of coarse it will also depend on where the overall market sits).
Western Wind Energy has already filed in for the $90M grant to the government which we are expecting to see in 4-5weeks from now.
Here is a simple math:
($112M Market Cap + $90M Grant)/62M Shares Out. = $3.25 per a share
Of coarse, it is not as simple as that and a lot other factors will play into the real equation. But we can see, it is obviously undervalue at about half that price at $1.80 today.
We should be seeing a price improvement in the next 2-3 quarters - till end of the year for a price increase. Unless the unfortuantes happen, but for now, lets hope for the best!
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