CBWP Appears Highly Undervalued and Set for a Breakout
Watch CBWP Rally: Anticipated Increase in Volume Expected!
A rally in volume typically leads to a rally in price. And so far, this has proven to be correct with CBWP.
Just look at some technicals!
Crownbutte Wind Power (CBWP.OB), is now pointing towards a strong move to the upside.
CBWP has shown that it could move fast especially when volume enters. Just look at the last two trading session during the morning hours...it came down but the bulls pushed it back up on the second day of this early rally.
CBPW Appears Highly Undervalued
I found an inttiquing post that discusses some interesting points about what the consideration of the low valuation of CBWP.
"An interesting point of view from a long.
Source says upon completion of pending Gascoyne 1 construction agreement conservative estimate of value of stock is $2.80 / share and that will be cheap.
Sources reasoning behind the huge gain in share value: The construction agreement will be replicated immediately for two more projects Crownbutte Wind Power has shovel ready. Investment groups are salivating at the opportunity to unload turbines they funded and purchased which are now sitting at defunct projects in the US.
Crownbutte wind power will receive 30% of the project cost back from the Department of Energy for each project completed by years end. Average estimated all in cost of each farm is 35 – 45 million. The minimum reimbursement checks from DOE will be in the neighborhood of $9 million. Three farms will produce 60 MW conservatively $12,000,000 in revenue each year with operational cost of $1,000,000 each, leaving combined free cash of $9,000,000 recurring revenue.
Source says upon completion of pending Gascoyne 1 construction agreement conservative estimate of value of stock is $2.80 / share and that will be cheap.
Sources reasoning behind the huge gain in share value: The construction agreement will be replicated immediately for two more projects Crownbutte Wind Power has shovel ready. Investment groups are salivating at the opportunity to unload turbines they funded and purchased which are now sitting at defunct projects in the US.
Crownbutte wind power will receive 30% of the project cost back from the Department of Energy for each project completed by years end. Average estimated all in cost of each farm is 35 – 45 million. The minimum reimbursement checks from DOE will be in the neighborhood of $9 million. Three farms will produce 60 MW conservatively $12,000,000 in revenue each year with operational cost of $1,000,000 each, leaving combined free cash of $9,000,000 recurring revenue.
Simple math EPS is $0.34, use a standard multiple of 10 and we are looking at $3.40 and growing. Total KW in pipe line is over 600 MW. So at 10% of the buildable capacity the stock will be worth conservatively $2.80.
At full capacity you do the math for the stock price, it significant.
At full capacity you do the math for the stock price, it significant.
You have to admit it’s an interesting point of view….. A far cry from $0.23."
Still Not Convinced?...
Now, if you’re not sure whether you should or should not invest into wind power, then here are some facts that may swing the vote for you.
- In 2007, Energias de Portugal, the national utility, bought Horizon Wind Energy from Goldman Sachs for $2.15 billion — the highest price ever paid for a wind-only company.
- November 2009 - China marched into Texas with $1.5 billion for a 600+ megawatt wind farm.
- A Spanish company Acciona acquired rights to about 1,300 MW of wind farms in the MidwestAnd Spanish company Acciona acquired rights to about 1,300 MW of wind farms in the Midwest
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General Electric (NYSE: GE) General Electric ranks number one in U.S. wind turbine sales and is actually one of the largest suppliers of wind turbines in the world, boasting more than 11,600 wind turbine installations that comprise more than 18,000 megawatts of capacity. Another development is expected to be ready to allow GE to compete in direct competition with German wind energy powerhouse, Siemens AG.
My Point is This...
Compare these valuations with the market cap of a burgeoning wind power energy company that "forecasts revenues of...three projects together could be nearly $12 million per year."
And what about Crownbutte?
CBWP Est. Market Cap: $5,502,070 as of July 26, 2010 (OTCMarkets.com)
As mentioned earlier... that's a massive difference for valuation purposes of a stock that trades under $0.30!
As mentioned earlier... that's a massive difference for valuation purposes of a stock that trades under $0.30!
So watch CBWP trade tomorrow because I expect much stronger in Wednedsay's market!
CBWP is on an uptrend... and "the trend is your friend!"
Best Regards,
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