BBI - Babcock & Brown Infrastructure

[jrrider]

http://money.cnn.com/news/newsfeeds/articles/djhighlights/200812090141DOWJONESDJONLINE000063.htm

Found this article and thought I'd share it in case you are interested in reading about BBI's asset. I wonder if this will have an impact on the valuation of the Port itself.

 

[banska bystrica]

BBI's revenue from Dalrymple Bay is "take or pay" so no effect on revenue. It's all good for BBI. Research pays.

 

[my03]

Been keeping my eye on this one with interest, it hasnt moved for ages, is it still a good time to get in or do you guys think there might be room to fall?

 

[Justthinkin]

Banska ... are you awake?

Your call re BBI was a good one... it is an infrastructure play with good regulated revenues.

It was so good I thought about spending my BBI dividend and buying you a Cristmas present. But they have announced divs on hold... bugger!!!!

Do you have a view on todays trades and price action? I suspect it was more about no announcement rounding out Westnet debt and acquisitions. Trading was more spooky I think rather than logical accumulation and/or position unwinding.

Cheers

 

[eMark]

That announcement was due today. The extension was up today. Why no announcement? I know it's only for a minor aspect (rollover until PowerCo funds come through), but no announcemnet is a little un-nerving...

 

[muzzza]

That announcement was due today. The extension was up today. Why no announcement? I know it's only for a minor aspect (rollover until PowerCo funds come through), but no announcemnet is a little un-nerving...

You hold Mark? Seems as though quite a bit of potential in this one.. What effect do you think the announcement will have, if any?

 

[mark_au]

There was an announcement today , looks like they got the extension utill the sale,
Im trying to decide whether to go into (more) debt and get a bunch of these guys or not... it would be nice to know when the dividend was coming back

regards

Mark W

 

[muzzza]

Thanks for the reply Mark.. They dropped down early to 7.2 cents now coming up to 7.6 cents.. I suppose if they announce the dividends it will boost the price up so its one of those gambles.. I hold and IMO is worth it in the long term.. You held for a while?

 

[mark_au]

gday

No i haven't had them for long at all, i bought them in three parcels one of them was when they were around 4 c.. during the recent hammering . I wish i had enough free cash to get a shipload more..... Though my previous experiences where i take the plunge on what seems to be a good idea usually go sour LOL

Thanks for the reply Mark.. They dropped down early to 7.2 cents now coming up to 7.6 cents.. I suppose if they announce the dividends it will boost the price up so its one of those gambles.. I hold and IMO is worth it in the long term.. You held for a while?

 

[random]

Any talk of a dividend return to BBI shareholders at this point is (to put it politely) "ridiculous".

As has been stated repeatedly by members - there is value here and they have been very oversold.
I fear however that many will lose a lot due to day trading and pure speculation from day to day.
Thats our own individual call.
Buy and sit. Value will return. Just don't expect it to jump soon.
Be patient. Buy your lot and forget about them and if you have some spare cash buy a bit more. Wait for the value to be recognized.
Dividends in the forseable future?
Ya dream'n.

 

[Justthinkin]

Random

Whilst I agree entrirely with your day trader comments and that this stock is best acquired and left alone in a dark drawer to mature, I'm not sure I'd be so matter of fact re dividends.

IMHO BBI has been pounded because:
(a) it's association with 'Dead Coy Trading', BNB;
(b) financial markets malaise and in particular absurd environment whereby banks won't lend to banks;
(c) sell first assess later approach... I'm sure many sellers still don't realise the significance of DBCT revenues surety; and
(c) perceived (and maybe real) acquisitions at more than full prices.

Despite all of the above, and I think todays announcement affirms the approach, BBI have maintained a steady as she goes approach, basically getting on with business.

They recently sold 50% in Powerco (and I'm reasonably confident that it will be settled) which will alter significantly short term funding issues and quite frakly remidn the market that there is in fact value in the portfolio. DBCT is gotta be worth more than the market is attributing to it under any commodity cycle circumstances and unless there is some hideous sin in a BBI cupboard, it's tough to find any enduring issues.

Having prattled on, my point is that in the not too distant future in my IMHO, the intrinsic value of BBI will be recognised in the first instance by the share market and the second, financiers. Once the latter have their act together and find a cosy comfort zone, dividends will be a must...

Today's price movements... I suspect a little bit of unease going into a christmas period...in the abscence of a sale announcement early next week it's difficult to see any bounce at this stage... drifting is the order of the day.

Good luck

My thoughts representing basically the rantings of the little yellow man in my head wearing a tasteful green dress and mathing handbag. DYOR

 

[banska bystrica]

There is no reason for BBI to jump in price. Some investors are very impatient.
Until we get confirmation of an asset sale, the price is not going up. It's still up 300% from the lows of November. Nothing goes up in a straight line.

You may be surprised at how soon dividends are re-instated. Remember, BBI has the cash flow from solid businesses to pay a dividend any time they want to. The only reason they withheld the last distribution was because they have no idea when this world financial crisis/credit freeze will end. Once it is confirmed that credit is again flowing, I see absolutely no reason why BBI will not be paying dividends in 2009/10. Once an asset sale is finalised, whether it be Euroports or DBCT, corporate debt can be trimmed and the excess cash can be used to develop PD Ports.

BBI is not just a recovery story. It's a growth story and I fully expect to see dividends equal to today's share price in 2009/10. Perhaps an interim 5c in March 2010 and then a final 5c in Sept 2010. Today's share price of 7.5c is not a reflection of the true value of BBI.

One needs to understand why they did not pay a dividend last time to fully appreciate why a dividend in 2009/10 is definitely on the cards. It's not rocket science but it does take a fair bit of research.

 

[muzzza]

There is no reason for BBI to jump in price. Some investors are very impatient.
Until we get confirmation of an asset sale, the price is not going up. It's still up 300% from the lows of November. Nothing goes up in a straight line.

You may be surprised at how soon dividends are re-instated. Remember, BBI has the cash flow from solid businesses to pay a dividend any time they want to. The only reason they withheld the last distribution was because they have no idea when this world financial crisis/credit freeze will end. Once it is confirmed that credit is again flowing, I see absolutely no reason why BBI will not be paying dividends in 2009/10. Once an asset sale is finalised, whether it be Euroports or DBCT, corporate debt can be trimmed and the excess cash can be used to develop PD Ports.

BBI is not just a recovery story. It's a growth story and I fully expect to see dividends equal to today's share price in 2009/10. Perhaps an interim 5c in March 2010 and then a final 5c in Sept 2010. Today's share price of 7.5c is not a reflection of the true value of BBI.

One needs to understand why they did not pay a dividend last time to fully appreciate why a dividend in 2009/10 is definitely on the cards. It's not rocket science but it does take a fair bit of research.

Nice write up Banska.. Do you feel that BBI is under or over priced at the current share price of 7.5c?

 

[random]

Oh, how i hope that you are correct and i am mistaken Justhinkin. It would make me very happy indeed.
We still are required to pay back some of the principle as well as interest before we are (using your accurate word) "perceived" to be back on track by the analysts ,banks and punters.
Until we have done this our share prices is restricted.
That our cashflow is healthy and sustained is our kiss of life but market perception is everything and we are perceived to be close to a cot case by the market at large.
Suspension of dividends and payment of this money towards principle with the Powerco sale and cash generated from our business of doing business is essential.
This should push the SP back up and give the likelyhood of a dividend payment more strength, but in time.
In saying this i acknowledge that if a dividend was reinstated it would attract more buyers and boost the SP but this is more of a gamble and is a little more shall i say like pollen to attract the bee rather than honey itself.
It is a question as to which route the directors pick.
Both have merit but i prefer the later scenario.
Either way I'm happy. Its a question of timing.
Like you i just pray there is no " sin hidden in BBI cupboard" which we do not know about.

I know my little story is very simplistic but i have become more simplistic.

PS
after writing this is i see that banska bystrica also writes about SP remaining static until some debt is paid. I did not copy but we both had same thoughts he just put it down a bit earlier and i wasn't going to delete mine from my rant. Cheers.

 

[option158]

hi

i have been following this thread for a long time and am enjoying the commentary on this BBI

now I have my big yellow learner plates strapped firmly to my forehead and my **** but if some one could please explain how something like this happens:

Course of sales for 18 December 2008

<< most recent| < previous| page of 16 go| next > |start of day >>
Time Price Quantity

4:26:08 pm 0.077 1,018,395
4:19:24 pm 0.055 1,018,395
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 7,577
4:10:54 pm 0.074 28,349

now tell me if im wrong but did someone after the market had shut

buy 1,018,395 @ 0.055
then approx 6 mins later sell them for .077

does that mean that someone just made $22,434.64 in 6mins?

if someone could please explain..

cheers option158

 

[justiceotp]

Anyone got any thoughts on BBI on the short term price as in how low they may go, I'm currently a holder but wouldn't mind grabbing another lot of them over the next few days to hold long term.

 

[mark_au]

Anyone got any thoughts on BBI on the short term price as in how low they may go, I'm currently a holder but wouldn't mind grabbing another lot of them over the next few days to hold long term.

I rounded up my holding of BBI to 100,000. hoping to see some recovery and growth by 2nd quarter 2009

 

[RodH]

BBI sells 30% of stake in Euroports


Share price is up 20% so far today, was hoping for a higher jump than that though...

 

[benhua]

I'm not following the intraday trading of this stock, but is there still a lot of day traders on this one, or any bots just pulling down the share price again?

 

[my03]

some nice gains in the last week, is this trend going to continue or do you think it's just a slight rally? worth getting into now or wait till it drops back?