Sector Overview:

Wind farm developers take the initiative of spending 1-3 years procuring high quality sites for utility sized wind parks that produce 100% clean and renewable energy for decades and decades.

Wind energy is the fastest growing source of renewable energy in the world. Over the past two decades, the costs associated with wind power generation have come down around 98%; from $1.00/Kw h to about $0.025/ Kw h. This means that wind power is as cheap as, or cheaper than the traditional and dirty fossil fuel derived electricity. To us it’s a no brainer– Why buy oil and natural gas from countries who hate us when the answer is right in front of us? People don’t realize it, but for every dollar we spend on importing Fossil fuels, that is one dollar that is taken directly out of the North American Economy, and eccentrically out of the pockets of a North American worker.

So many people are obsessed with solar, but it is absurdly expensive compared to Wind. Europe has been developing wind for years, and North America is eons behind; Denmark already derives about 20% of its electricity from renewable sources, and the rest of Europe is not too far behind with about 9%

This only leaves room in the North American Wind investment to go one way: up! In one day alone, Siemens AG, a wind turbine manufacturer announced an order just under $1 Billion for wind turbines. That’s just one manufacturer, and there many other manufacturers reporting similar news.


Industry experts peg global wind

energy investment for the next decade at roughly

$500,000,000,000


25% of the turbines in the Siemens deal are headed to Ontario, Canada, which represents 3% of North America’s population– this is not by chance. Since the passage into law, the Ontario Clean Energy Act, presently the most aggressive renewable energy program of its kind anywhere in the world, has generated an overwhelming response from industry participants.

Ontario, Canada has said in the Act that they will purchase electricity from wind developers for $135/ MW, and on average, in a modest wind farm, it will cost a developer about $50/ MW to generate this electricity–all in cost. this is roughly a 62% net margin, on a business model with very little business risk: unheard of in any industry.

~~The majority of Wind Works Power Corp’s projects are within Ontario, Canada~~



Where the Real Money is:

Although this process takes up to 3 years, there is enormous value created even before any windmills are erected on a property. After land is secured, the wind is tested for its strength, and the environmental  studies are finished, a wind farm developer submits and receives a Power Purchase Agreement from the local government; after this stage is complete, as mentioned above, the wind park before any windmills are installed, becomes a whole lot more valuable.

Industry averages that that once Power Purchase Agreements are secured, wind projects are roughly worth $475,000/MW, and Wind Works Power currently has a project backlog of approximately 407 MW; therefore only using the current portfolio, WWPW is potentially worth $190,000,000, and it’s current market capitalization is only $25,000,000.

With the current cost models the company has estimated it will cost roughly $19,300,000 to build out these projects to the PPA stage, in the process creating roughly $170,000,000 in value, at a margin of about 90% which sounds like a mistake, but it’s not!

Also, in an industry report by BMO Capital markets, one of Canada’s biggest investment banks, wind developers tend to have a value of about $1,750,000/MW for fully developed projects. This means that if Wind Works builds out their entire portfolio in 3 years or so they could be roughly worth $712,000,000, and they are just getting started!!!

Globally, the long-term technical potential of wind energy is believed to be five times total current global energy production, or 40 times current electricity demand. Meaning we will never need to burn another drop of oil to produce electricity if CURRENT plans come to fruition.

You don’t hear about it in the press, but in Copenhagen, Denmark, December 7th – 18thth, 2009, there is arguably the single most important summit of our time being hosted on climate change. It is called COP-15, and it is the United Nations Conference on climate change. It is no secret that the current Kyoto accord will be replaced in short order, and replaced with a new ratified deal, signed by ALL developed countries, and will contain enormous commitments to renewable energy content in the near future; more specifically about 25% of all energy from Renewables by 2025.

This can only be achieved by the economics and scalability

of Wind Power and Wind Works Power Corp. plans to

be at the forefront of this for North America

Management:

The Wind Works Power Corp. management team reads like the who’s who of the global Wind Power superstars. We here at FHPS are pretty well versed on the realm of everything Wind Power, and we have not seen a team with the proven background such as WWPW’s.  Here’s a brief rundown of the big-wigs:

Brief Management Background

Ingo Stuckmann, Ph.D., CEO, President and Director
Dr. Stuckmann received a Ph.D. from the U of Heidelberg and conducted research at Harvard thereafter. In 2002, Ingo joined Energy Farming International, a wind farm financing and construction company based in Germany. During his management, 560 MW of wind farm projects were successfully developed. Energy Farming International merged with Seeba Energy Farming Group in 2007, and Ingo now serves as a Principal of the merged entity. With currently more than 80 employees, SeeBa Energy Farming Group is involved in the development of more 1300 MW around the world. In 2008, Ingo co-founded Zero Emission People LLC for wind development in North America, and has since merged it with WWPW.

Thomas Tschiesche, Ph.D., Director
Dr. Tschiesche received a M.Sc in Mechanical Engineering from the U of Washington, and a Ph.D. from the U of Duisburg. Thomas served over 5 years as general manager at Nordex, one of the world’s leading wind turbine manufacturers. Over 100 wind farm projects were realized under his tenure. In 2002 serving as its CEO, Thomas co-founded Energy Farming International, a company for wind farm financing and construction that grew to $100 Million USD in revenue over six years. Energy Farming International merged with Seeba Energy Farming Group in 2007 where he also serves as a Principal of the merged entity. In 2008, Thomas co-founded Zero Emission People LLC for wind energy development in North America.

Chairman of the Board of Directors: J.C. Pennie
Mr. Pennie is a pioneer in the wind energy industry in Ontario, Canada. He has successfully developed six wind energy projects representing $360 million in power contracts that have been sold into joint ventures with international firms such as Energy Farming International of Germany and Schneider Power of Toronto. Mr. Pennie is on the IESO (Independent Electrical System Operators) renewable energy standing committee. The IESO is responsible for coordination of generation and transmission with electricity demand.

WWPW’s Technical Picture:

Barchart.com has a long, medium, and short term bullish buy signal on WWPW.

One can also see that it the chart has a pendant formation, which is usually indicative of a continuation pattern which is currently bullish.

At current prices, one might deduce that being at roughly $1.00 and sitting near the 50 Day EMA, that there is a strong case to be bullish on WWPW.

The stock has run up 400% in the past few months, and now the volume has just started to pick up. Volume is the steam that drives the engine, and it looks like WWPW has a full tank of gas.

So In summary we can say:

  • At $475,000/MW the stock at roughly worth $5.00 Per Share with the current share structure
  • Even Diluted due to next year’s issuance of 10.0 million shares paid top Zero Emissions People for the acquisition will still value the shares at roughly $3.90– a 240% gain
  • Even discounted at 15% for one year for cost of capital, that still brings the shares to a valuation of roughly $3.40 a 208% gain
  • 2011 construction planned for the first Canadian projects in Ontario
  • 2012 construction planned for the first US project
  • WWPW presents a tremendous value at current prices due to its current low visibility in the market

WWPW has an incredible opportunity to develop multiple, multi-million dollar wind energy projects around the world. In today’s progressive and environmentally conscious world, the time to develop and realize such opportunities is like no other time in history. This is an opportunity international in scope that WWPW is committed to capitalizing on for the benefit of all their shareholders.

There is no denying there will be tons of investment in the wind space over the next 10 – 20 years. But With booms comes competition as every firm enters and tries to make quick money. WWPW is in a unique spot, where they are not in the cut-throat world of component manufacturing, and will enjoy strong margins without the constant threats of new firms entering the marketplace.

Some of the smartest business leaders have been known to say: in times where everyone is panning for gold, you want to be the ones selling the pick-axes. This is exactly what Wind Works Power Corp. is doing so don’t wait on this one, get on board now!!!

We see this stock at $10.00 in the near future.

Continue your due diligence at the company’s website: www.windworkspower.com , and other sources you can find via the internet.