Alterra Power Corp. (fka MGMXF)

[terry hallinan]

"Massively undervalued, you think?

Yeah I think but not for the reasons the fund manager thinks.

Alterra Power Corp. (TSX:AXY, OTC:MGMXF).

Current Price: C$0.28. Annual Yield: N/A. Low Target: C$0.20. High Target: C$0.60.
Unlike Ram and Finavera, Alterra Power is a renewable energy developer with a diversified portfolio of operating plants as well as development projects. When outside investment is difficult or expensive to come by, as it is today, the company has the option of pursuing joint ventures or selling stakes in some projects to fund development of others. It has been pursuing both these strategies recently, with the most recent deal being the partial sale of its interest in its Dokie wind farm for C$29 million. That interest amounts to only 3 to 5 percent of its power production, revenues, or EBITDA, depending on which metric is used, but the sale amounts to a cash infusion of 6 cents a share, or 20 percent of the current stock price.

As that transaction shows, Alterra is massively undervalued based solely on the potential sale price of its operating assets.

http://www.renewableenergyworld.com/rea/news/article/2014/01/ten-clean-energy-stocks-for-2014?page=2

I am not a big fan of sometime ["intermittent"] energy, particularly the solar and wind weaklings which get their strength largely from Uncle Sugar here and beyond but I am admiring of great management even despite falling through the ice in Iceland early on.

Best, Terry