BBI - Babcock & Brown Infrastructure

[investorpaul]

Price just went mental on BEPPA, up to 8.5c now on the last trade. No similar movement on BBI however.

I am up $260 across my portfolio now, an excellent day. Wish I had the cash to keep buying, will have to wait for the correction now.


What could you see being achieved BB? 15x? More?

Price jumped pretty quick, doesnt seem to be any reason though???

It will be interesting to see how well it holds the gains because it has been dropping back in the afternoon most days

Edit: the difference between the two is now 2 cents and it doesnt look like BBI is going to move inline with BEPPA

 

[Viva_Las_Vegas]

Not sure why BEPPA has jumped so much today, but i hope it closes around 8c. I am now in a position to buy more.
How is everyone feeling about BBI/BEPPA haven't felt much back slapping on here lately ;-)

 

[sinner]

Not sure why BEPPA has jumped so much today, but i hope it closes around 8c. I am now in a position to buy more.
How is everyone feeling about BBI/BEPPA haven't felt much back slapping on here lately ;-)

Because we aren't all constantly seeking validation for our actions? I think you might be hooked on watching your bet ride!

 

[Mitsimonsta]

I am not going to be in a position to buy until at least Thursday (Payday is Wednedsay next week), but if Kev's handout gets here Wednesday then I expect to jump on with some more a tiny bit quicker.

 

[Tysonboss1]

I have been buying lots of 20,000 or 25,000 units three times a week.

I purchased 15,000 today at 8.7c just to round off my holding at a nice even number, Beppa is about 10% of my total portfolio now, so I should really sit back and watch for a while now.

 

[investorpaul]

I am not going to be in a position to buy until at least Thursday (Payday is Wednedsay next week), but if Kev's handout gets here Wednesday then I expect to jump on with some more a tiny bit quicker.

I'm waiting for KRudds hand out too. Ive got a ton of stuff to pay for (mainly o/s travel) that im still undecided whether to buy more BEPPA.

I'm happy with my current holding, but im not sure if greed is getting to me a little (ie that 1000% return potential).

It will be interesting to see how much they rise before any announcement is made Re: sale of assets or reduction of debt

 

[nomore4s]

This thread is fast deteriorating into a backslapping ramping festival.

Before people get sucked in to the euphoria especially newbies, have a bit of a read through the whole thread and you will see that people have been calling this a screaming buy since well over 80c.

I don't know if this will eventually return 1000% or go back down to 3c but I do know there are risks envolved with this stock - so make sure your risks are adequately managed if you do buy into the hype.

I personally think there are better options around atm with similar rewards but a hell of a lot less risk.

Good luck to holders.

My.

 

[banska bystrica]

I am heavily loaded on all bases with BEPPA and also BBI. I added 150K BEPPA today and was happy to pay 8.5c.
nomore4s is right. There are still significant risks and people should be taking those risks into account.

With BBI, there is still the risk of significant dilution and whilst corporate debt remains, there is a risk of administration.

BEPPA's risk is that corporate debt remains unpaid due to assets not being sold.
I personally cannot see how DBCT doesn't get sold. We know there are multiple parties in the data room doing due diligence, the coal terminal is fully regulated and "take or pay" so earnings are as guaranteed as you will ever get. We know Macarthur Coal, Xstrata, BHP and Rio Tinto are interested as well as infrastructure funds. Yes there are risks, but at 8.5c for BEPPA, the downside is 100% to zero and the upside is $1 on maturity (2012). That's potential upside of in excess of 1000% profit from today's prices.

BEPPA is basically a 10/1 bet that DBCT gets sold. That's a tremendous investment in my book.

It's all about risk/reward and everyone has a different risk tolerance.

 

[Viva_Las_Vegas]

Thanks for buying up today Banksa, lol I think you drove the price up a bit for the rest of us Schmucks.
Missed by buy order today for 50k units, but hoping to get an opportunity tomorrow. I guess we are a long ways off from the DBCT announcements but in this tumoltuous market who know what when or where

 

[skc]

This thread is fast deteriorating into a backslapping ramping festival.

Before people get sucked in to the euphoria especially newbies, have a bit of a read through the whole thread and you will see that people have been calling this a screaming buy since well over 80c.

I don't know if this will eventually return 1000% or go back down to 3c but I do know there are risks envolved with this stock - so make sure your risks are adequately managed if you do buy into the hype.

I personally think there are better options around atm with similar rewards but a hell of a lot less risk.

Good luck to holders.

My.

Totally agree. So many people with no capital or experience "DYOR" on this thread alone. The risk / reward of this trade may be favourable, but one must always remeber what the risk/reward of an individual trade means: good R/R ratio works for you over time, over many trades.

I'm waiting for KRudds hand out too. Ive got a ton of stuff to pay for (mainly o/s travel) that im still undecided whether to buy more BEPPA.

Paul, consider this as borrowing money (probably at a v.high rate) to invest/gamble on a high risk opportunity, and ask yourself if it complies with your trading / investment plan.

Good luck.

 

[banska bystrica]

Paul, consider this as borrowing money (probably at a v.high rate) to invest/gamble on a high risk opportunity, and ask yourself if it complies with your trading / investment plan.

If you think it's high risk, that's your opinion. A sale of DBCT at a reasonable EBITDA multiple is hardly high risk. People are looking at the share price (sub 10c) and assuming it's high risk because of this.
I think BEPPA is very low risk. That's my opinion after hundreds of hours of research.

 

[hardyakka]

I don't know if this will eventually return 1000% or go back down to 3c but I do know there are risks envolved with this stock - so make sure your risks are adequately managed if you do buy into the hype.

I personally think there are better options around atm with similar rewards but a hell of a lot less risk.

I also added to my holding today, picking up another 100k at 8.4 cents and now hold a reasonable number of BEPPA.

Nomore is perfectly correct, we must never lose sight of the fact that this is a high risk/high reward investment. If you assume the worst and plan to lose whatever you have invested then there can only be upside in your investment.

The removal of the management agreement and certainty about the sale of DBCT will have a reasonable impact on the BBI and BEPPA prices. DYOR as to which direction it will head ;-)

Cheers

 

[cbrendan]

I personally think there are better options around atm with similar rewards but a hell of a lot less risk.

Good luck to holders.

My.

Genuinely interested to hear what you believe has similar rewards with considerably less risk then BEPPA.

Cheers

 

[nomore4s]

Genuinely interested to hear what you believe has similar rewards with considerably less risk then BEPPA.

Cheers

Won't go into it in this thread but just have a look around atm, small caps are flying some have doubled & tripled in price in the last few months. Stocks like SSM are moving up while still paying high d/e's. Even MQG has doubled in price in the last 6 weeks or so. All with substantially less risk imo.

What happens to this stock if the sale doesn't go through?

 

[Family_Guy]

Noobie question.....
Whats the diff between BBI and BEPPA? Thread seems to have changed from one stock to the other so i got confused. And if this sale goes thru of DBCT, then why is BEPPA the better one to own?

 

[cbrendan]

Won't go into it in this thread but just have a look around atm, small caps are flying some have doubled & tripled in price in the last few months. Stocks like SSM are moving up while still paying high d/e's. Even MQG has doubled in price in the last 6 weeks or so. All with substantially less risk imo.

What happens to this stock if the sale doesn't go through?

Hey mate,

Thanks for the quick reply.

From my own point of view, i believe the sale will go through and wouldn't be in the stock if i didn't. I accept that if they can't sell for a decent price my investment will be close to a write off.

That being said i'm not talking about doubling or tripling my money, i'm talking about a 1000% return on my average price.

I can weigh up the risk and invest MY money knowing that if the stars align i've made my fortune, and if it turns to s*****t that i'm just gonna have to work a bit harder for a while.

100% agree that less riskier options exist wherein to double your money

Only doubling your moneys for suckers though

 

[nomore4s]

That being said i'm not talking about doubling or tripling my money, i'm talking about a 1000% return on my average price.

I can weigh up the risk and invest MY money knowing that if the stars align i've made my fortune, and if it turns to s*****t that i'm just gonna have to work a bit harder for a while.

100% agree that less riskier options exist wherein to double your money

Only doubling your moneys for suckers though

lol, they haven't finished moving up yet, and how do you know none of them will return 1000%?

I've got no problems with people investing in this stock and if the chart triggers a buy for a trade I will buy. The main reason for my post was just to bring a bit of reality about the risks back to this thread so newbies don't get sucked in without knowing the risks involved.

Have you read through the start of the thread lately? Makes for interesting reading, people have been calling for these massive gains for a while.

I hope you do get your 1000% gain, while I happily stick to my trading plan.

Good luck.

 

[hardyakka]

Noobie question.....
Whats the diff between BBI and BEPPA? Thread seems to have changed from one stock to the other so i got confused. And if this sale goes thru of DBCT, then why is BEPPA the better one to own?

BBI is basically an interest in a registered scheme (ie BBI) and it carries the full equity risks and rewards of ownership. BBI distributions vary depending upon the profitability of the fund.

BEPPA is basically a preference share and it receives income in the form of interest income. For each $1 BEPPA bought in the original float you would receive interest income for several years, and in 2012 can get your $1 back or covert into BBI securities noted above. The key difference is BEPPA do not participate in the equity risks and rewards and are safer. As a result they are safer because in the event of a wind up they must be paid out first before the BBI holders receive a cent.

BBI has liquidity problems because it has too much debt, the sale of DBCT will realise a profit and allow senior debt (ie bank debt) at the corporate level to be paid down. If the sale does not go through BBI may not be able to meet its funding obligations. Under the Corps Act a company cannot trade whilst insolvent (directors can be held personally liable for debts incurred whilst it does so).

Hope that helps and read some of the earlier posts as it is explained in detail in those.

Cheers

 

[Family_Guy]

BBI is basically an interest in a registered scheme (ie BBI) and it carries the full equity risks and rewards of ownership. BBI distributions vary depending upon the profitability of the fund.

BEPPA is basically a preference share and it receives income in the form of interest income. For each $1 BEPPA bought in the original float you would receive interest income for several years, and in 2012 can get your $1 back or covert into BBI securities noted above. The key difference is BEPPA do not participate in the equity risks and rewards and are safer. As a result they are safer because in the event of a wind up they must be paid out first before the BBI holders receive a cent.

BBI has liquidity problems because it has too much debt, the sale of DBCT will realise a profit and allow senior debt (ie bank debt) at the corporate level to be paid down. If the sale does not go through BBI may not be able to meet its funding obligations. Under the Corps Act a company cannot trade whilst insolvent (directors can be held personally liable for debts incurred whilst it does so).

Hope that helps and read some of the earlier posts as it is explained in detail in those.

Cheers

Right. The first post that i have actually understood (not really, but it is).
Thanks for that, understood completely now. I bought BBI understanding the risks but the BEPPA just threw me a little. I read quite a few pages but skipped a few and maybe also skimmed over some crucial posts. Cheers for the reply.

 

[hardyakka]

lol, they haven't finished moving up yet, and how do you know none of them will return 1000%?

I've got no problems with people investing in this stock and if the chart triggers a buy for a trade I will buy. The main reason for my post was just to bring a bit of reality about the risks back to this thread so newbies don't get sucked in without knowing the risks involved.

Have you read through the start of the thread lately? Makes for interesting reading, people have been calling for these massive gains for a while.

I hope you do get your 1000% gain, while I happily stick to my trading plan.

Good luck.

Nomore,

I agree with you that there has been a lot of counting your chickens before they hatched. If BEPPA goes to 20 cents by June I will be happy (that represents a gain of about 150% plus)l

Regarding looking at other stocks, well I have gone from the bluest of blue chips to some quite good midcaps which, if I had held them, would be showing even healthier profits. These include TRY, AGO, IGO, PLA, SDG, MAH, ABP, NOD and ACL to name a few. I have had a few non-performers which I think have potential such as AGS and ACR.

Researching BBI and BEPPA the potential risks and rewards became clear. With the exception of PLA, ACL, NOD and a couple of large blue chips I have decided to go with my judgement and instinct and replace the midcaps with BEPPA.

Most of those midcaps are showing great profits now, maybe they will be 200% plus in 12 months time. However IMO the price, risk and reward equation of BEPPA, especially considering it has the NTA of BBI as a "safety cushion" in a worst possible case scenario, is warranted

I am pretty sure that somewhere there is method to my madness.

Cheers