Hi all I'm reading very negative comments on the stock and it seems people are frustrated with the stocks current position and not seeing the true potential in this business.If you break down the numbers on the stock to determine its true value. The current EBTIDA is sitting at $150M and shares outstanding is at 954m shares.
That gives the business a yield value of 36.5% at the current price of $0.43.Where can you find a stock that is doing that ! The huge factor that we are not accounting for is that next year we will certainly have a Labor federal government and renewables are in the box seat for growth should you like it or not.The topic of renewables is a fast growing interest of the millennial's in our society and this on a mass physiological scale has a positive flow on effects for the businesses acceptance in the energy sector.
To date billions of dollars are flowing into renewable businesses not because the business receives rebates from the government but because the businesses make commercial sense in terms of the yield returns they are producing.with regards to the electricity cost of production, Wind farms like Infigen energy easily beat coal generated power. so from here the key to making this all work is storage solutions that allow companies to unload power into the grid at times that best suit and not at times that are off peak.lets just remember that the business itself has built a business that is extremely cost competitive and is going to be backed by a government that supports its agenda.Please give me your thoughts
