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Saturday, 03/12/2011 10:38:04 AM

Saturday, March 12, 2011 10:38:04 AM

Post# of 95214
PSPW's Valuation - Must Read!

I know there are a lot of new investors here. I just wanted to show just how incredibly valuable this stock will likely be after the merger is complete. This truly is an unfound Gem for most.

Total shares outstanding: Approx 40 million (Confirmed Yesterday)
Total Market Cap as of Yesterday's Close: $ 21 million

Now, what we do know:

* $5.35-billion-dollar Contract Owned by Rudana: Currently has with the Nation of Albania to build Hydro Powered Plants. The Last 8k issued said that PSPW had hydro projects in Albania. Rudana owns 70% of PSPW currently. It is my belief that they will be contributing the entire $5.35 billion project to PSPW, as it only makes sense. Officials in Albania would want one company working on this project, not multiple companies, Rudana owns the entire contract. Why in the world would they give the projects to any other company other then PSPW which the currently own 70% of pre merger? The wouldn't!

* Seawind Projects worth $ Billions: Seawind will be given the same number of shares that Rudana has in the company, which is currenly 28 million. This would give Seawind an equal share of the new 3 Power as Rudana has. This means that Seawind likely has assets and a pipeline of projects worth at the very least the same as Rudana, otherwise why give them equal ownership in this corporation. $5.35 billion! Having said this, many on the board have calculated the total projects which Seawind has in their pipeline and it seems to be quite a bit more than this. Gigawatts of projects. They have major projects set to go up in both Italy, and Chile.

* Offers to other companies for shares: http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100603005053&newsLang=en

Prime Sun Power Inc. (OTCBB/New York: PSPW, Berlin Xetra/Frankfurt: PSD), announced today that it has entered into a Strategic Investment Agreement with Bangkok Solar Power Co., Ltd. (“BSP”), a leading manufacturer of PV solar modules and engineering, procurement, construction, and installation (“EPCI”) contractor to acquire up to 6,639,063 shares of PSP Common Stock at price of €7.73 per share. All shares issued to BSP will be subject to a lock-up period until December 31, 2013.



They are offering them shares for $10.73 USD. Usually such a deal would be given to a company at a share price under where they expect this thing to go.

Just read the names involved in these companies, and try and come up with one point to bash on. Any possible negative aspects of this deal have been disspelled by longs here.

Valuation:
Post merger OS should be about 69 million shares or so if they don't issue equity to anyone else in exchange for funding. The highest the outstanding share number can possibly go is 300 million.

Let's say that these contracts that both Rudana and Seawind are contributing are worth approximately $11 billion (Likely more), and will be carried out over the next 5 years. That equates to revenues of $2.2 billion per year. Let's use no multiplier here just for the sake of us not knowing the full details of everything. Keep in mind most Renewable energy growth companies will have multipliers in the double digits:

$2.2 billion / 69 million shares = $31.88 Per share
$2.2 billion / 300 Million (The absolute higher number of shares possible) = $7.33 per share

Basicially I would look for a share price of somewhere between $7.33 and $31.88 in the near-mid term depending on the exact details of contracts, and the share structure. Keep in mind this is with no Revenue multiplier.