# BBW - Babcock & Brown Wind Partners Group



## stockmaster (7 August 2006)

Price has slumped on friday after the announcement of profit downgrade. Surprisingly the price went the other way this morning against the momentum it has from friday. 

Secondly JP Morgon stayed with the rate though there was a profit downward which is unusual esp for JP. 

Any thoughts on this company? Any price prediction.


cheers


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## Porper (7 August 2006)

stockmaster said:
			
		

> Price has slumped on friday after the announcement of profit downgrade. Surprisingly the price went the other way this morning against the momentum it has from friday.
> 
> Secondly JP Morgon stayed with the rate though there was a profit downward which is unusual esp for JP.
> 
> ...





Good rise in price but the volume was 6 times lower than Friday which gives a clue to what is happening in my book.

I am looking at a potential short position with this stock.See what happens over the next day or two.


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## Ko Ko (9 August 2006)

Im holding this stock too. I think on Thursday there was an overselling of this stock which had this dramatic drop in share price. On that thursday I was observing the buyers purchasing 100,000 dollars plus of this share.

I think this share has good benefits in the up coming months from futhur acquisitons of other wind farms


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## chops_a_must (20 December 2006)

I've been watching this one for a while, and after it looking as though not even a gale could move the share price, it's looking good. Slowly moving up on relatively large volumes for this stock. Announcement of 12.5cps dividend today. Pretty damn good given the share price.

It's a long term hold for me. I'm looking forward to seeing what this does over the next few years.


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## chops_a_must (22 January 2007)

Gapped up on large volume today. Could very well have gotten out of the downtrend it has been in.


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## billhill (17 May 2007)

Decent move in this share the last two days. Anyone know why. The only thing i could think of was the victorian report suggesting coal power will be affected by water shortages. Either way i'm not complaining.


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## chops_a_must (21 June 2007)

Decided to pyramid in to this stock the other day, as I knew a dividend was imminent and the formation looked good. And keeping with my strategy talked about elsewhere, I think these eco-stocks will be nice to hold towards the coming election. And a number of them are looking very good now, so the time is right for me. CNM is another one right now in my eyes as well.

Also, announcement out about divis... and a good DRP as well:



> 20 June 2007
> ESTIMATED DISTRIBUTION FOR THE HALF YEAR ENDING 30 JUNE 2007
> Babcock & Brown Wind Partners (ASX: BBW) announces an estimated distribution for the half year ending 30 June 2007 of 6.25 cents per stapled security.
> This distribution will be the final distribution for the year ending 30 June 2007. This means that the total distributions for the year ending 30 June 2007 are expected to be 12.5 cents per stapled security, in line with previous distribution guidance.
> ...




But either way you draw it, it looks good for a potential break. Target for this run at 2.20, but it is a bit of a turdle. Very stable though.


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## roland (23 November 2007)

BBW have finalised the Cedar Creek windfarm purchase, and today announced Merrill Lynch now hold nearly 6% of the stock. I am using BBW and BBP to start growing my dividend returns. Aegis consensus have BBW, BBP and BBI all on strong buys. I have normally relied on ZFX for dividends but recent SP falls and Zinc weakness has me looking for a better dividend stock. Anyone have thoughts (conflicting or otherwise) on the Babcock satellites?


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## agro (5 February 2008)

Financial Results come out end of Feb...should spark market sentiment.
Anyone buying at the bottom now?

I am looking to accumulate but not certain.


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## JTLP (5 February 2008)

My only problem with stocks like this (BBW, BBI etc) is the fact that although the dividend is quite high, the Debt to Equity ratio's are pretty extreme.

ROE pointed this out on BBI

BBW has like 170% debt to equity ratio
BBI has 202% debt to equity ratio.

I only did basic accounting but these numbers seem pretty extreme. Does it seem that BNB are using a huge leverage to keep these afloat?


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## roland (5 February 2008)

agro said:


> Financial Results come out end of Feb...should spark market sentiment.
> Anyone buying at the bottom now?
> 
> I am looking to accumulate but not certain.




I would be buying at the bottom, if it were not for the fact that I've also reached the bottom of my financial resources.


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## roland (5 February 2008)

JTLP said:


> My only problem with stocks like this (BBW, BBI etc) is the fact that although the dividend is quite high, the Debt to Equity ratio's are pretty extreme.
> 
> ROE pointed this out on BBI
> 
> ...




From my understanding, the BNB peripheral principal is to be continuosly negative geared - they run on debt which has better tax benefits than running on cash (correct me if I am wrong, I could be talking through my hat) 

The assets collected are all generally targeted prior to the peripheral taking seed. Once the entire investment is utilised the assets should be cash positive in terms of income versus debt liability servicing. Once this happens, then they look for further funding to start the cycle again.

The businesses chosen for BBP and BBW (not so into BBI to comment) are high demand power infrastructure in markets of certain growth, so I feel that these 2 in particular are quite sound businesses.

I suppose the biggest threat would be that they are financing dividend returns from debt which is the first thing that is going to suffer if the income balance is not met.

I am also led to believe (again, correct me if I am wrong) that the loans secured for the asset purchases are at a fixed interest rate for the period of the project.


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## agro (7 February 2008)

I expect a bounce from BBW - going by the chart and previous history, prices are trading at August 07 levels

today shows a strong iap

with financial results end of feb and future concern for greenhouse this one is a keeper imo?

also not to mention uhat utitlities often are a safe haven in times of a bear market..

thoughts


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## roland (7 February 2008)

agro said:


> I expect a bounce from BBW - going by the chart and previous history, prices are trading at August 07 levels
> 
> today shows a strong iap
> 
> ...




There are many that are expecting some good things from BBW/BBP - all broker guidances I have seen show a strong buy.

AEGIS have a 12 month target of $2.02 as at 29 Nov 2008 with the following comments:

Investment Opinion
We view BBW as a balanced investment, with solid income and growth prospects. We like the stock's strong development prospects; however, these come with inherent risks in constructing to specification, cost and schedule. BBW's management fees are high, yet comparable to those of its listed broader utilities peer group. BBW’s association with BNB should ensure a long-term pipeline of future deals.

BBW's outlook is for strong cash flow generation derived from its assets and development projects, which should deliver solid distribution growth over the medium term. BBW's growing portfolio of operational wind farms and the potential acquisition of the two new wind farm assets will provide scale and diversification benefits, reducing the impact of operational variances. We have a positive short-term investment view.


Earnings Outlook
Management's guidance for its distribution growth target was for at least 3.5% over medium term. We continue to expect strong EBITDA growth over the medium term and for distributions to be covered by the company's maintainable cash flows. Integrating the recently acquired wind farms sees our depreciation and net interest costs rise but we believe BBW will be able to sustain its healthy distributions. BBW reconfirmed its distribution guidance for and FY08 of 14.5cps.


Not to mention that at the current SP ($1.35), dividend works out to be 9.9% before tax

I'm holding - my plans for BBW are definately long term, it now makes up part of my future regular income.


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## Danielson (5 May 2008)

Hello, this may be a very silly question but does anyone know how BBW's dividend payments per share are substantially higher than the earnings per share. Does this mean that the dividend is being funded mostly from debt? Are they trying to make the share look more attractive? I'm stumped..


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## roland (13 May 2008)

Nice high profile bit of news for BBW:

BBW PREFERRED TENDERER FOR SYDNEY WATER DESALINATION PLANT

Babcock & Brown Wind Partners (ASX: BBW) advises that it has been selected as the preferred tenderer to meet the renewable energy requirements of Sydney Water’s desalination plant. 

BBW proposes to provide output from the Capital wind farm to deliver these requirements. The Capital wind farm is located near Bungendore in New South Wales, Australia, and is currently under construction. The wind farm is expected to be operational by mid-2009 and is expected to have an installed capacity of 132.3MW, and an expected long term mean energy production of over 400GWh per annum.

Negotiations between Sydney Water and BBW are currently proceeding, with contracts expected to be signed shortly.


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## roland (23 June 2008)

Yahoo! - made it to ex div day with all parcels in profit. Unlike the absolute mess I made with BBP 

If the SP holds tomorrow, I'll use that as a chance to reduce my exposure.

The expectations from Aegis and Comsec are still very positive with both BBW and BBI - but anything with the Babcock name has been temporarily tainted, warranted or not.


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## goldmandane (2 July 2008)

Why it down sop much today, i dont see this news as bad??......

just filling space here with charachters so disregard this line


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## roland (3 July 2008)

Well, I am not sure what prompted the SP drop to $1.54 on Wednesday, but I picked up some anyway.

I came across this from the Comsec website - since I don't buy newspapers ..



> Date: 2/7/2008
> Author: Danny John
> Source: The Sydney Morning Herald --- Page: 27
> Babcock & Brown Wind Partners (BBW) has acquired another four wind farms in Germany. BBW, the wind power fund of Australian investment bank and fund manager Babcock & Brown, has made the purchases as it prepares to sell its European energy business. The German wind farms were purchased as part of a long-standing deal with one of its wind farm developers. BBW noted the deal allows it to buythe new farms at a lower than normal price. BBW is selling the European assets to try to support its market capitalisation, which is currently below the book value of its assets. Its deals with German wind farm developers Gamesa Energiaand Plambeck Neue Energien will allow it to quickly restore a large portion ofits European operations





sort of doesn't make a lot of sense - but doesn't sound overly negative.


The Comsec earnings forecast suffered a corresponding drop from said website - as per the little bar graph.


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## roland (28 July 2008)

Well, I'm pretty happy with the after market news with BBW securing the power for the Sydney Desal Plant - it was always on the cards, but now it's official:



> ASX Release
> 28 July 2008
> *BBW SIGNS SUPPLY AGREEMENT FOR SYDNEY WATER DESALINATION PLANT*
> 
> ...


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## roland (20 August 2008)

What's in a name?

Well, if it's got Babcock in it - then people are going to set the boot in everytime BNB trips.

Yesterday was smash BBI, today it was smash BBW and as for BBP - well, that just deserves to be smashed anyway.

Interestingly BBW have no shareholdings or loans with BNB but get smashed anyway.

Personally I don't believe that BBI nor BBW deserve the current market treatment (correct me if I'm wrong). They hardly have anywhere near the financial problems that BBP have.

In any case, I have topped up on both BBI and BBW at these great prices.

BBP??? - wouldn't touch it with a rusty fence post!


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## roland (21 August 2008)

I wonder if someone can tell me why selling an asset and making a great profit would prompt the SP fall as described on the Comsec website:

Babcock & Brown Wind (BBW) fell 22pct or 28.5c to $1.025 after the company announced it had agreed to sell its Spanish assets to Formento de Construcciones y Contratas for an estimated profit before costs of about $266 million. The installed capacity of 420.7 megawatts from 14 Spanish wind farms, represents a disposal of about 17pct of BBW�s total portfolio.


To me, if you buy something, then sell it at a good profit, then that's a great business outcome.

I did note that on close, BBW had over 6 million units bid at $1.15 at market close pre-open pushing the SP up $0.05 on close - obviously I wasn't the only one that thought BBW was oversold.


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## aacantona (21 August 2008)

roland said:


> What's in a name?
> 
> Well, if it's got Babcock in it - then people are going to set the boot in everytime BNB trips.
> 
> ...





Sometimes being rational or rationalising a decision in an irrational marketplace can produce a dire outcome. Whilst it defies logic, sometimes it pays to follow the irrationality - in the short term, anyway.


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## roland (16 September 2008)

BBW, like most of the market got smashed again.

However, the announced share buy back did stem the fall. I'm still feeling pretty good about BBW. Picked up some more at .92

The capital return due in the next couple of days will knock my average back by a few cents - so I am quite comfortable with the prospects.

I'm quite happy with the annoucement to buy back 10%


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## roland (17 September 2008)

Children's Investment Fund of UK has increased stake to 5.29%

Now if that is not averaging down then nothing is.


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## roland (19 September 2008)

The Children's Investment Fund of UK has now increased their stake to 9.53% of BBW

Capital return came in today - pretty happy with all this so far


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## roland (19 September 2008)

and yet another increase in holdings for BBW - Kairos Fund Limited increased stake from 9.22 to 10.01%

mmm, never heard of them


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## roland (9 October 2008)

Thought I would spread my misery around with all my holdings. Maybe my losses will brighten up someone else.

BBW -26.50%


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## YChromozome (9 October 2008)

Am I missing something?

BBW, Last Trade (Close) $1.085 up 3.828%

Low for the day was 1.015? (about -6.5% from days open)


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## roland (9 October 2008)

depends on what your average cost is - mine is $1.4763 - so I am down 26.5%

currently have an unrealised loss of $7,473

have had some realised profits though - only $2,769, so syill looking at a $4K paper loss just on BBW


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## YChromozome (9 October 2008)

Cool. I get ya now after reading your post - its how much you are down on your holdings.

I panicked when I saw you post and thought it was the daily loss of BBW.


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## DionM (17 October 2008)

I've been doing some reading on the Children's Investment Fund.

Nice summary here:
http://en.wikipedia.org/wiki/The_Children's_Investment_Fund_Management

The head honcho has a rep for roughing things up ... perhaps they'll go for an attempt to sever the BNB parent?

Perhaps they'll go after the BNB parent to force them to sever ties?

Oh and to comfort Roland - BBW for me today is -45.86%.

89c close today.  Interesting.  But I'm already at my limit for investment in a single share, and I dare not break that rule (only done that twice - ZFX and BBP, and look where that's got me!).


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## chops_a_must (17 October 2008)

By the way.

What happens to these little off shoots when babcock eventually goes bust?

.................................................


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## roland (20 October 2008)

BBW Announcement - Initial Directors Interest Notice



> Name of Director
> Graham Kelly
> Date of appointment
> 20 October 2008 for each of Babcock & Brown Wind Partners Limited, Babcock & Brown Wind Partners Services Limited and Babcock & Brown Wind Partners (Bermuda) Limited
> ...




*What a whimp - I've got twice as many !*

- probably less than a months salary


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## bloomy88 (21 November 2008)

Gday,
I was just wondering what will happen to BBW if babcock and brown go bust?
It doesnt look like a bad long term investment, as clean energy will be a thing of the future. It just depends if they can survive the current market conditions....
The fact they are paying their distributions out of debt worries me though.
Thanks in advance for your responses
Cheers


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## roland (18 December 2008)

Looks like Babcock and Brown Wind are close to being unleashed.:



> 18 December 2008
> TERMINATION OF MANAGEMENT & ADVISORY AGREEMENTS AND
> INTERNALISATION OF BBW MANAGEMENT
> 
> ...




Pre-open looks good, unleash the gale!


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## Mc Gusto (25 March 2009)

I like them. Unleash the gale indeed.

I think a name change is inevitable and probably inement. With that there may be some announcements on the company. Nice charts as well. I have an average price of 88c on these so am looking to hold for the time being. Haven't moved much for the past week but have held strong.

Thanks


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## Malindidzumu (26 March 2009)

Click on the link provided below to view the recent interview of BBW CEO Miles George discussing BBW's future direction which should be of interest to you whilst simultaneously answering the questions you raised.

http://www.abc.net.au/news/video/2009/03/13/2514903.htm


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## blue2 (27 March 2009)

It seems TCI now want out but having bought in heavily last year at around $1.20, with an expected div of about 13c, they are now faced with a capital loss of around 25% and a future div of only 9 c. Their solution is to sell everything and hand out the cash to shareholders.

Personally I feel BBW has a pretty assured future with moderate growth prospects, basically a boring but reliable infrastructure with reliable dividends. They wont get my support.


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## Malindidzumu (27 March 2009)

> Personally I feel BBW has a pretty assured future with moderate growth prospects, basically a boring but reliable infrastructure with reliable dividends




I agree with you about the future of BBW and I for one would be very surprised if they wound the fund up given their long-term prospects.

I also think that BBW has strong growth prospects in the future, and I view the US as being the key to this. At present wind contributes 1% of the electricity needs of the US and it is widely projected to contribute 20% by the year 2030. If it gets anywhere near this figure not accounting for what may or may not happen in Australia and elsewhere, the future looks very bright for BBW indeed. 

I would however be more convinced in BBW as an investment given the construction of transmission lines, the construction of offshore wind farms as distinct to onshore wind farms, and the implementation of some sort of storage technology which would solve wind power's intermittency problems.

I have yet to invest in BBW, but provided it remains listed I am likely to do so in the future, especially if the above issues are taken care of.


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## Mc Gusto (7 April 2009)

I Hold BBW

have an average buy price of 88c

This stock has been accumulating for sometime now. There has been quite a bit of sell-off from Deutche and Babcock yet the price has held strong. 

I like them and am hoping for further increases.

Thanks

Gusto


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## Mc Gusto (7 May 2009)

Now under IFN - Infigen Energy

Need a bit more text here to fulfill the requirements....


Thanks

Gusto


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## prawn_86 (7 May 2009)

Mc Gusto said:


> Now under IFN - Infigen Energy
> 
> Need a bit more text here to fulfill the requirements....
> 
> ...




As Gusto said, the company's name has now been changed. This thread has now been closed. 

View the new thread here:
https://www.aussiestockforums.com/forums/showthread.php?t=15405


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