Replies to post #17462 on 3Power Energy Group Inc (PSPW)

[Schekin]

Porgie, did you understand this part...
"for the duration of the loan"
How is that "more dilutive than the issuance of another 8 million shares would be" as you say?
Float is 12+ million.

You said, "This company looks like micro-crap garbage from this angle."
Change your angle. You'll see the gem it truly is! : )
Good luck. Thanks for your perspective.

[lamb123]

They aren't handing over assets.....they are securing the loan against assets. Very different!

[Investman432]

Its not as bad as it appears, depending on how large the loan is versus the construction costs. Its 20% equity interest in the project, not the company. In some solar projects I am doing, the loan exceeds the total cost, providing the developer with cash-out at closing - in other words, the developer owns 80% with no equity at risk. Its a lot like real estate.

[sctts]

You are correct, the loan carries a much higher cost than 5%. 20% of the net profits of each specific project reverts to the loan holder, but only for the life of the loan. Thus the importance of developing profitable projects, and paying off these loans as rapidly as possible. It just dilutes the revenue stream, but there would be no revenue stream without the loan/project.
The BSP deal is similiarily constructed, Rudana is a investment firm, not a alternate energy provider. They appear to be finding companies in the field of alternate energy, and willing bankers, matching them up and developing projects, giving all parties a stake in the outcome.
Nobody said it was going to be easy.

[trademeister]

Chump change in the grand scheme of things...

[GemSeeker]

Interesting Perspective Porgie...

From my angle it looks like this...

The loan from CR&P Holding S.p.A is essentially a partnership. Would you invest 50 Million dollars into a company if you thought they would not perform or go out of business? Of course not.

CR&P Holding S.p.A., the Italian investment group, has an excellent track record and a keen understanding of the Global Alternative Energy Market. They are based in Rome, Italy and have Portfolio holdings in Real Estate and Renewable Energy Projects with recent asset valuations of over 300 Million Euros.

Their 50 Million Dollar investment (loan) into PSPW is a clear indication of their faith and overall outlook for 3Power.

This is actually a best case scenario for shareholders. :)

IMHO. :) All opinions always welcome... just sharing my analysis from time to time.