Source: Clive Maund for Streetwise Reports
May 31, 2018 (Investorideas.com Newswire) Technical analyst Clive Maund discusses Greenbriar after its big Montalva solar project has effectively gotten the go ahead.
Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) looks like an even better investment here following the news that it has secured all of the financing required to go ahead with its big $305-million Montalva solar project in Puerto Rico, as it has just announced that it has executed a $265 million mandate agreement with Pegasus Renewable Energy and Sustainable Infrastructure Credit Advisors LP, an affiliate of Pegasus Renewable Energy and Sustainable Infrastructure Credit Fund LP (RESIC). Under the terms of the agreement, and subject to certain conditions, Greenbriar will issue to Pegasus two million common share purchase warrants at a price of CA$1.00, exercisable over a period of five years. This last piece of information probably explains why the price of Greenbriar stock has fluctuated close to C$1.00 in recent weeks, but now the deal is "done and dusted," it is considered to be free to advance.
We first looked at Greenbriar when it was priced at C$0.87 per share, and again on 9th May following a dip, when it was priced at C$1.10 per share. Since this last update it has fluctuated in a range between approximately C$0.96 and C$1.15, marking out what is believed to be an intermediate base pattern, as we can see on its latest 6-month chart below. On this chart we can see that it is now oversold relative to its 200-day moving average, with its positive Accum-Distrib line indicating a high probability that it will soon advance anew.
Here it is worth noting that Greenbriar is one of only two independent solar power producers trading on the TSX Venture Exchange; the other, Etrion SA, has 334 million shares in issue whereas Greenbriar has only 17 million.
The big solar project in Puerto Rico is not the only potentially very profitable enterprise that Greenbriar is involved in, as it also has interests in Blockchain technology, Real Easte and so-called Smartglass, as set out in the original article on the company.
Motivation to buy this stock is certainly improved when you read that a valuation report, ordered by a judge and released publicly, valued the Montalva solar project at a NPV $191 million. At 18 million shares of Greenbriar outstanding, that would result in a value of over $10 per share.
It is also worth noting that companies developing viable renewable energy projects such as Greenbriar are being aggressively acquired by other larger companies who are attracted by their profit potential, an example being Alterra Power Corp., a renewable energy company founded by Ross J. Beaty, which was acquired by Innergex earlier this year, at a 58% premium to the stock price.
Conclusion: Greenbriar is viewed as most attractive here after the big Montalva solar project has effectively gotten the go ahead. So we stay long and it is rated a strong buy again here at the current favorable entry point. Please refer back to the original recommendation for Greenbriar to view its long-term chart.
Greenbriar Capital website.
Greenbriar Capital Corp, GRB.V, GEBRF on OTC, trading at C$1.00, $0.77 at 12 noon on 30th May 18.
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Greenbriar Capital. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Greenbriar Capital, a company mentioned in this article.
Charts provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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