sum of its parts equals value

Guys,

IFN is a stock that just needs a little bit of patience and it will undoubtedly reward. 4 factors are critical:

1. If it was going to breach its covenants it would have already the B&B legacy issue tells us if it is truly vulnerable it would have capitulated with a little push from the shorters.
2. German assets are sold and US will follow over the next 12 months.
3. Woodlawn succeeded in getting project finance in a difficult market.
4. Corporate debt will be significantly reduced over the next 24 months and I wouldn?t be surprised to see the remaining Australian wind farms restructured out of the corporate facility into more traditional project finance type arrangements similar to Woodlawn.


On a broader basis the sum of its parts is 3 times its market cap and with the introduction of a carbon tax the value of its products will increase.

Regardless of what musings are going on within government we will see the REC deluge flush through the system and overall electricity and REC prices increase over the next 18 months.

So in short IFN is in the eye of a perfect storm and has weathered it

1. Depressed REC and Electricity prices
2. Too much corporate debt

On the positive side the sum of its parts are far greater than its current value. There has also been no value attributed to the 2GW of wind and solar projects sitting within the IFN pipeline. The reason for this is an inability to finance, however as the previously discussed issues are resolved the inherent value in the pipeline increases.

On a conservative $30K per megawatt this equates to $60 million see the attached refs for comparables (this is very conservative).

http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=ufq2xmcvva&n=207952.PDF

http://www.research.hsbc.com/midas/Res/RDV?p=pdf&$sessionid$=1nmvhDFheUzV2-Bb3gipL8C&key=2S0YIUSuhM&n=280550.PDF


Expect to see IFN $1+ in the next 12 months.

O