what a buy?
Valuation and Recommendation: We initiate coverage with a Speculative Buy recommendation. We have set a price target of $0.70/share reflecting our NPV based upon a WACC of 13.3% and a terminal growth rate of 2.5%. The underlying beta is 1.3 and the risk free rate employed is 5.5%. Although it is still in its infancy we regard Jackgreen as an exciting long-term play. The stock is now trading at a 61% discount to our estimate of fair value and hence provides patient investors with an inexpensive exposure to the rapidly growing renewable energy sector. We expect the stock to re-rate once the break-even point of 25,000 subscribers is achieved.
JGL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
