Globe says Versant analyst touts Western Wind WNDEF
2008-05-30 08:47 ET - In the News
The Globe and Mail reports in its Friday edition that one small Canadian company, Western Wind Energy, has carved out a niche in California that gives investors a chance to get in on one of the hottest U.S. energy sectors. The Globe's Richard Blackwell writes TSX Venture Exchange-traded Western Wind has had a stellar stock market performance in the past year, with its shares more than tripling to $3.50. It is now in the $3 range. The company has two wind farms in California and a portfolio of potential projects that could provide substantial growth. One of Western Wind's two operating facilities is the Mesa project near Palm Springs, where more than 400 old turbines generate about 30 megawatts of power. The company plans to upgrade the small turbines to dramatically increase the output. The key to the company's success, said analyst Massimo Fiore of Versant Partners, is that California has both relatively high electricity prices, and a pro-alternative-energy policy. Its goal is 20 per cent renewables by 2010. Western Wind still loses money. In the 11 months to Dec. 31, 2007, it lost $2.6-million on revenue of $4.3-million. Mr. Fiore rates the company a "strong buy." His one-year target is $5.10.
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