Replies to post #12402 on Atlantic Power & Infrastructure Corp. (AWSL)

[apprentice1]

Very well said

[Gilda99]

AWSL's preferred shares are defined as a financial equity/obligation to be redeemed December 31, 2018 at which point the minimum aggregated value of the debt will be at least $10 million as previously demonstrated - #12261 - 8/04/13.

At this point AWSL needs this debt (the preferred shareholders financing) in order to pay it's operating expenses and startup losses; otherwise there would be no going concern operation.

I took the preferred stock out of the computation of common shareholders' net book value per share, since the common shareholders get what's left after the AWSL debts and preferred share obligations are fully paid. In the event of liquidation today, there would be nothing left because AWSL liabilities exceed AWSL's corporate assets. Furthermore, as of June 30, 2013, the AWSL insiders buying the preferred shares wouldn't get their preferred shares paid off either, although they must be fully paid before the common shareholders get a dime to split 44 million ways.

I'll buy into the notion that AWSL is entitled to some premium over its NEGATIVE book value per common share outstanding, but I don't see much interest from anyone willing and able to actually pay that premium; do you, asdfu099?

Gilda

Aside from all buys being met with short sales (offers_ lets not forget these classic trades like today's 179 share print at .2401 . Putting the stock down on a $43 trade!

Regarding the last post,preferred shares are equity by definition. Taking them out of the financial equation to get to 'your' book value is like me taking the accounts payable out to get a valuation I like.

If we are going to ignore generally accepted accounting principals then I am not sure how these discussions are going to be meaningful.

As for valuation and a premium, since when to small cap's or growth stock get valued by book value? They almost NEVER do. This is reserved for a much different breed of company and security. Most companies, large and small get valued based on growth prospects and EPS.

Therefor, lets assume AWSL gets (based on its current margins and projected sales as outlined in there annual report) earning of $2,500,000 for 2013: (not including Ecuador or anything else other than FIT 1.0_

Earnings $2,500,000
Issued and Out shares Approx: 44,000,000
EPS of .057 share
10 times earning = .57 per share
20 times earning = $1.13 per share
30 times earnings = $1.71 per share

Large companies with slower growth will get 10 times earnings. Smaller faster growing companies can get more than 25 or 30 times earnings. This also ONLY takes into account 1.0 sales and remember Ecuador's 58 MW deal is 20 times larger than FIT 1.0. It assumes no short squeeze at all.