BBI - Babcock & Brown Infrastructure
- Thread starter roland
- Start date
If you listen to the brr interview, the management specifically says it would be very difficult for them to payout the BEPPAs in cash, pretty obvious given their debt troubles and that unless the RE is sold off by the BNB administrators, there will not be a change of control event triggering the conversion of the beppas into bbi shares. They also specifically structured the deal to avoid the change of control event so I think any deal is highly improbable.
So about 124mill shares of bbi traded today during trading and many more cross traded after hours....... quite out of the ordinary. An average of over 70,000 per trade.
How long will it be until notification of a change in holdings by a major player is announced? and who was it?. But then for every seller there has to be a buyer doesn't there!
Little change in price though.
Don't know quite honestly what it means but i'm sure who ever bought most of them didn't do it with the intention of making a loss.
Watching and waiting with curiosity more than anything else now.
No hurry. Just waiting.
Not holding bbi - just beppa's.
How long will it be until notification of a change in holdings by a major player is announced? and who was it?. But then for every seller there has to be a buyer doesn't there!
Little change in price though.
Don't know quite honestly what it means but i'm sure who ever bought most of them didn't do it with the intention of making a loss.
Watching and waiting with curiosity more than anything else now.
No hurry. Just waiting.
Not holding bbi - just beppa's.
- Joined
- 30 December 2007
- Posts
- 591
- Reactions
- 0
random,
I suspect daytraders buying and larger holders dumping. I am short for a million at average 7.7c. Might be wrong but I am confident of further downside. The reaction to the report pushing the stock to 13.5c was insane. The report was solid operationally but the capital/debt management is in a mess courtesy of the greedy banks.
A sobering video conference was held at ABN Amro today. ABN Amro staff and BBI representatives (CFO Sellar and IR chief Liossis) were involved.
PS. No, I am not on the ABN payroll in any way. I don't work for anyone.....but myself.
I suspect daytraders buying and larger holders dumping. I am short for a million at average 7.7c. Might be wrong but I am confident of further downside. The reaction to the report pushing the stock to 13.5c was insane. The report was solid operationally but the capital/debt management is in a mess courtesy of the greedy banks.
A sobering video conference was held at ABN Amro today. ABN Amro staff and BBI representatives (CFO Sellar and IR chief Liossis) were involved.
PS. No, I am not on the ABN payroll in any way. I don't work for anyone.....but myself.
- Joined
- 27 March 2009
- Posts
- 189
- Reactions
- 0
Alarms seem to be ringing for me now with some positions being taken by some people, and the trading that is happening since the results were released.
Very much annoyed at myself for not taking my profit last Wednesday when I had more than 100% gain. Really should have sold half, preserved original capital and let the profits run.
Will see where the SP takes us tomorrow. Holding 31K units BEPPA only.
Very much annoyed at myself for not taking my profit last Wednesday when I had more than 100% gain. Really should have sold half, preserved original capital and let the profits run.
Will see where the SP takes us tomorrow. Holding 31K units BEPPA only.
banska bystrica,
After last weeks rally i thought that the price would drop back but i salute your gonads at going short for 1 mill at 7.7c. The margin is pretty thin from here i feel but i admire your stand. Best wishes to you.
Most day traders however buy for the very short term (hence the definition)and most buy with the hope that there will be a rise so that they can dump on only a few point rise. By recent events most would have done their doh in recent times or got nowhere by my reasoning on bbi.
Beppa have dropped slightly but on minimal volumes - there just arn't enough shares there to play silly buggers with since its pullback from 19c. If a player (sorry investor) such as yourself who deal in high volumes exit you may not get back in but hey...... look who I'm talking to.
Anyway as i was saying with the volume of bbi that went through today i am surprised it not only held but went up a speck. That surprised me.....but in a good way.
Tomorrow who knows.
Mitsimonsta do not dispair - we have all been there. It will happen again to!
It equaits to having a ring dinger of a hangover and swearing off the grog forever.
Never again ......but you do.
Your human.
After last weeks rally i thought that the price would drop back but i salute your gonads at going short for 1 mill at 7.7c. The margin is pretty thin from here i feel but i admire your stand. Best wishes to you.
Most day traders however buy for the very short term (hence the definition)and most buy with the hope that there will be a rise so that they can dump on only a few point rise. By recent events most would have done their doh in recent times or got nowhere by my reasoning on bbi.
Beppa have dropped slightly but on minimal volumes - there just arn't enough shares there to play silly buggers with since its pullback from 19c. If a player (sorry investor) such as yourself who deal in high volumes exit you may not get back in but hey...... look who I'm talking to.
Anyway as i was saying with the volume of bbi that went through today i am surprised it not only held but went up a speck. That surprised me.....but in a good way.
Tomorrow who knows.
Mitsimonsta do not dispair - we have all been there. It will happen again to!
It equaits to having a ring dinger of a hangover and swearing off the grog forever.
Never again ......but you do.
Your human.
- Joined
- 30 December 2007
- Posts
- 591
- Reactions
- 0
random,
I plan on exiting BEPPA in a drip feed way. I am not dumping at any price.
I do not plan on buying BEPPA back. If I buy anything it will be BBI depending on price when SPARCS convert but I will reassess as events unfold. I am not closing my short position on BBI just yet. I see further downside until SPARCS are converted.
I thought BEPPA would be restructured but it appears as though the company are happy enough to let BEPPA trade on until 2012. They have much more pressing concerns.
Good luck to all whatever your strategy is.
There are no details, but I would imagine it is STRONGLY likely to be positive for BBI and VERY STRONGLY likely to be very positive for BEPPA.
Regards,
Rhys
- Joined
- 30 December 2007
- Posts
- 591
- Reactions
- 0
Let's see the detail first and I for one am not counting my BEPPA chickens just yet. Remember that BBI are in a very tight spot with the banks and the power clearly lies with the new cornerstone investor.
Think about it. If you had the substantial cash to inject into BBI, would you not try and get the absolute best deal possible?
Think about it. If you had the substantial cash to inject into BBI, would you not try and get the absolute best deal possible?
- Joined
- 27 March 2009
- Posts
- 189
- Reactions
- 0
Of course you would. To quote an old Victorian TV Ad: It's your money Ralph.
I am expecting new cornerstone investor to add enough to remove corporate debt, and participate in a capital raising to maintain holding levels. I expect the investment + capital raising should be enough to pay the $205M due in October, plus the option of paying out SPARCS in cash, rather than diluting BBI further. But in this case, you could see a 20c BBI SP so dilution would be alot less than any of us were expecting it would be.
Once we get top that point, I really do not care how it runs thereafter. Distributions for BEPPA can start again. Cash can be managed more effectively than the bank sweep. Interest rates for debt facilities are likely to fall.
I am expecting new cornerstone investor to add enough to remove corporate debt, and participate in a capital raising to maintain holding levels. I expect the investment + capital raising should be enough to pay the $205M due in October, plus the option of paying out SPARCS in cash, rather than diluting BBI further. But in this case, you could see a 20c BBI SP so dilution would be alot less than any of us were expecting it would be.
Once we get top that point, I really do not care how it runs thereafter. Distributions for BEPPA can start again. Cash can be managed more effectively than the bank sweep. Interest rates for debt facilities are likely to fall.
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
Any cornerstone investor will want most if not all of the equity value they see in return for any recapitalisation.
Me thinks that provided a good opportunity for those with inside info to jump in "under the radar"!
I have been known to be wrong with my conspiracy theories in the past though.
Yeah, I don't fully understand the situation. If the bbi holders get screwed, they could vote against it? But even if the shareholders get diluted, this injection could go almost all the way to saving the company? So maybe they wouldn't vote against it.
Anyway it is neutral for beppa if it is voted against, and excellent if equity is raised.
- Joined
- 27 March 2009
- Posts
- 189
- Reactions
- 0
BEPPA depth is interesting.
Opening bid is 15c with 2 buyers wanting 29K units. I then see 7 offers at 15c and down to 12c for 32.2k units.
Probably too late to trade today now, but it looks like there are a few sellers looking to get out and expecting bad news. I have the opposite opinion.
Opening bid is 15c with 2 buyers wanting 29K units. I then see 7 offers at 15c and down to 12c for 32.2k units.
Probably too late to trade today now, but it looks like there are a few sellers looking to get out and expecting bad news. I have the opposite opinion.
- Joined
- 30 December 2007
- Posts
- 591
- Reactions
- 0
No insiders were buying BBI the last week. I cannot be sure about BEPPA though.
As I suspected, the 400M volume was all daytraders.
Comsec clients bought 240M and sold 260M
ETrade bought 108M and sold 108M
AS Perth broker bought 42M and sold 42M
D2MX bought 34M and sold 33M
See, just punters in and out.
As I suspected, the 400M volume was all daytraders.
Comsec clients bought 240M and sold 260M
ETrade bought 108M and sold 108M
AS Perth broker bought 42M and sold 42M
D2MX bought 34M and sold 33M
See, just punters in and out.
- Joined
- 1 May 2007
- Posts
- 2,904
- Reactions
- 52
BEPPA depth is interesting.
Opening bid is 15c with 2 buyers wanting 29K units. I then see 7 offers at 15c and down to 12c for 32.2k units.
Probably too late to trade today now, but it looks like there are a few sellers looking to get out and expecting bad news. I have the opposite opinion.
Its suspended?
-------------------------------------------------------------------
0253 GMT [Dow Jones] Babcock & Brown Infrastructure (BBI.AU) interest from a
"potential cornerstone investor" as a precursor to a recapitalization could see
a large sovereign wealth fund willing to take a long term view on cyclical assets, take a
majority stake in BBI, speculates one trader. With around A$750 million in corporate debt
due by FY11, trader says current estimated annual free cash flow of A$150 million
won't cover repayments, so an injection of A$400 million-A$500 million in return for
stake of 60%-70% could keep lenders happy and, subject to BBI hybrid noteholders agreeing
to not convert and massively dilute equity, could unlock equity value estimated around
A$0.40-A$0.50, suggests trader. BBI in trading halt, last 7.8 cents. (WEL)
