Comments on: Catch the Wind Quarterly Results Q1 2010

By: Dean Morel

Dean Morel — Wed, 15 Sep 2010 23:20:13 +0000

I think you're right on most counts Boudreau. Here's the June financials. Current ration 3.8 and quick of 2.8. With the current burn rate they will need to raise cash within the next six months, so likely to do that anytime now, though at current price may want to delay. Will be interesting to see if Hunter Hall ponies up again. IIRC the last raising was $2 or maybe $1.80 with attached options, need to check that. The selling seems incredibly desperate now, 619k last night driving price down to 51 cents.

By: Boudreau

Boudreau — Tue, 14 Sep 2010 15:16:34 +0000

Looks to me that the market is factoring in the planned equity offering, probably at a much lower price given the slow progress this year. After going back and looking at analysis & presentations from last year, the company expected to be selling Vindicators to wind farms by this point in the year.

So it seems likely we’re looking at a big dose of dilution when CTW raises cash, although frankly the selloff does seem rather severe. The CFO leaving isn’t comforting, but I don’t know what, if anything, to read into that yet. Samuels jumps jobs every few years but I have no idea what his motivation was. I checked SEDI and he isn’t the massive seller that seems to be willing to punch out of the stock at any price right now.

By: Dean Morel

Dean Morel — Tue, 14 Sep 2010 03:51:00 +0000

Not at all lulzy. These situations simply take a while to develop. If you’re afraid of volatility then you should never invest in a company without earnings. Lynch recommended only investing in companies once they became profitable.

Boudreau sorry for not replying, your comment slipped through to the keeper. I’ve tried to get information on CTW vs. OptoAtmospherics from both companies, but neither has replied. I’m hoping to get to one of the shows next year where they’ll both be promoted so I can talk to them.
I think OptoAtmospherics are about a year behind.

By: lulzy

lulzy — Tue, 14 Sep 2010 02:14:23 +0000

well the price is down bigtime to 72 cents i am guess he lose interest in stock, lol

By: Boudreau

Boudreau — Wed, 28 Jul 2010 20:14:09 +0000

Hey Dean,

Interesting company & potential opportunity. Do you see any reason for the big price decline from the highs earlier in the year, beyond the volatility in the markets? Seems like the story has improved with the recent sales.

Also, do you have any insight into CTW’s LIDAR product vs. OptoAtmospherics? The latter’s turbine mounted product includes measurements of temperature and air density, but I don’t know if this makes much of a difference, or even how far behind they are in getting the product to market.

Boudreau

By: Sean

Sean — Sun, 16 May 2010 06:01:35 +0000

Thanks for the tip Dean. I’ll keep an eye on it. I had a long think about my TLS holding this week and it’s really dissappointed on a number of fronts. It’s failed in terms of expectations on a fundamental, technical and time basis. I think I’ll take a loss on it and move on.

By: Dean Morel

Dean Morel — Sat, 15 May 2010 22:44:03 +0000

Hi Sean, DYE look interesting, but they’re still a couple years away from commercialisation and will need a couple equity infusions before then. Over the next 18 months an opportunity to buy them at a really attractive price should present itself.
Even CTW which should be commercial this quarter is still speculative.