BBI - Babcock & Brown Infrastructure

[shaunQ]

Excuse my ignorance of the actual company structure of the BB group, but if the parent goes down - what is to say that the children go down automatically with it? Are they completely seperate entities? Could liquidators attack the children?

 

[banska bystrica]

Are they completely seperate entities? Could liquidators attack the children?

Yes and then no. Your ignorance is excused. One of the children (BBP) owes the parent $400M. Other than that, all the children now run their own race.

 

[random]

My goodness - there appears to be a little interest in our baby today.
Encouraging if nothing else!

 

[RodH]

go you good thing! wishing I bought some more stocks last week now, when they were at ~3c (but thats the way it always goes isn't it )

any particular reason for the skyrocketing? or people realizing that it is oversold and is still a pretty decent stock.

 

[mark_au]

Woo hoo they have just hit 8 cents..
gosh i hope this trend continues my portfolio is still around 50K in the red....

 

[banska bystrica]

Takeover rumours flying around and it makes sense. Even at 30c, these are cheap on a long term basis with net assets of $1.20 per share.
Monday will be interesting after the weekend press. BNB might be a goner over the weekend which would pave the way for all the satellites to be a target.
Interesting weeks ahead. 2.5c seems a way off now.

 

[banska bystrica]

Kohlberg Kravis Roberts and Co could be building a stake in BBI according to a Qld stockbroker. If that's true, this stock will fly. They are a serious private equity group.

 

[banska bystrica]

Further speculation in the press today. At 7.5c it's a completely decimated share price and with the quality of assets, it would not surprise that someone has been more than having a look. If someone has been buying the last few days as a pre-cursor to an official bid, then we will see some volatility this week. The brokers are talking "takeover" and now the press are saying the same.
It's the sort of stock that could end up back at 4c by Friday or at 14c.

It all depends on whether the rumours are close to the money or not.

 

[Tiles]

Further speculation in the press today. At 7.5c it's a completely decimated share price and with the quality of assets, it would not surprise that someone has been more than having a look. If someone has been buying the last few days as a pre-cursor to an official bid, then we will see some volatility this week. The brokers are talking "takeover" and now the press are saying the same.
It's the sort of stock that could end up back at 4c by Friday or at 14c.

It all depends on whether the rumours are close to the money or not.

At least there is some positive news for investors. After the decline to 2.5c I had given up. Maybe a further punt is justified.

 

[banska bystrica]

After the decline to 2.5c I had given up.

Actually at 2.5c when I bought 800,000, I thought it was a dream it felt that good.
It's funny how emotions work. Tiles and I'm sure others felt guttered yet I viewed it as a huge opportunity.
I wonder why you didn't take the opportunity to really load up Tiles?

 

[Tiles]

Actually at 2.5c when I bought 800,000, I thought it was a dream it felt that good.
It's funny how emotions work. Tiles and I'm sure others felt guttered yet I viewed it as a huge opportunity.
I wonder why you didn't take the opportunity to really load up Tiles?

I think because I saw it as the end of the line rather than a possible new beginning. I must admit that I was really tempted, especially when I saw your commitment. But having seen two of my investments go down the gurgler when I had averaged down, I was a bit shell-shocked. A lost opportunity, but I will pick up some today and go on from here.

Having only recently joined this forum, I'm very impressed with the openness and sharing of the participants. I really hope that BBI goes to $1 and your vision gets the reward you deserve.

"Clever people deserve to get rich"

 

[banska bystrica]

I really hope that BBI goes to $1 and your vision gets the reward you deserve.

$1 inside 3 years would be tremendous, but I'll settle for 14c in the short term and hope that BBI can form a base from there.
However, I have a feeling BBI will not be around much longer. The rumours about a takeover are growing.

 

[prawn_86]

Banksa do you have any reposrts/references to confirm the t/o rumours? Otherwise it seems a bit meaningless.

 

[deano9801]

I'm only new to all this, but I would have thought these PDF documents posted by ASX means there is no takeover going on that BBI are aware of? Otherwise it's insider trading yer?

http://www.asx.com.au/asx/research/...s.jsp?searchBy=asxCode&allinfo=on&asxCode=bbi

 

[Nicks]

I think the fundamentals have changed somewhat for BBI.

It seems that the fear of dilution as a result of BNB going under is no longer a problem and it is this that is driving this stock north ward. Personally I think this is a catalystic event and is the turnaround this stock needed.

Apart from that if you read between the lines of the Moody rating..... ie if BBI sorts itself out liquidity wise, and I believe that based on the quality of their assets and revenues that they will have absolutely no problems in doing so, then this company is going to out perform significantly in the next 12 - 24 months (and yes some of that will be massive rebound but some will be a return to quality and conservative management).

So I think this stock is now looking like a very good grab whilst it is still at low levels. Obviously only wise to commit a small % of the portfolio to but definately looking like a good grab now. The chances of either BBI getting back to business and good management (and dropping the two Bs in its name and code) and pulling through this liquidity issue (and I think they will not have any problems securing this given their quality assets and revenues) or someone sniffing around at their quiality assets and having a go, is looking all too likely now. I think themarket has now learnt to seperate it from BNB, which is what looks like will happen in itself anyway.

 

[banska bystrica]

Banksa do you have any reposrts/references to confirm the t/o rumours? Otherwise it seems a bit meaningless.

Prawn,
It was in black and white in the Brisbane Sunday Mail yesterday. Is that a good enough reference?

 

[RodH]

I'm only new to all this, but I would have thought these PDF documents posted by ASX means there is no takeover going on that BBI are aware of? Otherwise it's insider trading yer?

http://www.asx.com.au/asx/research/...s.jsp?searchBy=asxCode&allinfo=on&asxCode=bbi

I'm only new to this too, but the way I saw it was there is no deal to be announced. They're still allowed to be in talks without having to make an official announcement aren't they?

 

[justiceotp]

Hey Banska, Im interested if its not rude to ask have you continued to hold the full 800k of shares you bought or sold of some to have a free ride and if not what your target price is for selling some or all?

 

[banska bystrica]

I am certainly not interested in selling at 10c. This stock was smashed beyond comprehension to levels completely unjustified. I would have thought a minimum price would be 30c before I would contemplate selling any. In June it traded at $1.00. A 70% discount to that would be my minimum sell point and not for all of them.
Savage bear markets do throw up some sparkling gems. BBI is one of them. Hold tight and it will be worth a lot more in 2009. It will have a breather for sure but too many investors and institutions now recognize the true value and so any weakness will be seen as an opportunity to accumulate.
It's NTA is well over $1 and the intangibles in the books are actually worth a lot of money. People scoffed at the intangibles and said they were worth nothing.
Tell me the lease on Dalrymple Bay Coal Terminal which is being eyed off by Xstrata, Macarthur Coal, BHP, QIC and others is worth nothing, yet it is an intangible.
A 99 year lease is "intangible" but you and I know it would be worth a couple of billion at least. 10c is still a trashed price. Not interested.

 

[random]

As each day goes on i have more faith in this share.

Watched for a long time but waiting until the 25th of Nov to buy at 3c and post on this thread. (sometimes, just sometimes, my timing can be right).

Banska is absolutely correct. This is still an absolute bargain at 10c and I also will not be selling any at anywhere around these prices either. ,

The best thing to do is forget about them until probably half way through next year at least or until some mover and shaker comes in has sufficient funds for a takeover and recognizes BBI for the bargain it is.

There is no doubt that the price of BBI can drop again before it goes up but it matters little if you are able to hold on to what you have and are not forced to sell.
I recognise that there is alot of hurt out there with BBI but that does not diminish from its true value. yes yes yes the debt......I know. But the cash flow! This flow is the envy of many and the lifeblood of this beast. If the cash flow wasn't there it would be a totally different story regardless of the asset quality in this climate..... but it is there STILL.
Reducing costs and diminishing debt is still vital but it is looking pretty good me thinks.