BBI - Babcock & Brown Infrastructure

[ricee007]

I suppose I would consider 2* BBI + 45c...

If BBI was, say, 15c.... thats 75c.

I think I would vote yes, if it was done this year.

Regards.
Rhys

 

[persistentone]

I suppose I would consider 2* BBI + 45c...

If BBI was, say, 15c.... thats 75c.

I think I would vote yes, if it was done this year.

And where are they going to get this cash?! They can't even afford to pay the dividend. Where are they going to come up with more than $300M for this payment?!

 

[random]

I'm sure that once the viability of bbi is acknowleged by a few more respected bodies and that opinion is that it is not going to fall in a heap it won't be hard to come up with 300 mil.
That is, come up with 300 mill to save 500 mill!!
Especially with a capital raising to follow. Not so far fetched. Bankers will see that as time goes on!

Personally i was happy with our cash flow stated in the report. Not too bad at all, all things considered.

I'm as convinced as ever of our ultimate success its just the timing I'm uncertain of but as you say persistentone it should be this year because as time does creep on it will cost more to dispose of beppa holders.

 

[random]

My apologies...... I meant to credit ricee007 with the comment about doing the deal this year and not persistentone who querried it.


Sorry.

 

[jacobkball]

Whoohoo nice move today

I'd certainly be amenable to an offer like 45c + 2 BBI - that would be very tempting. I'm not sure they'd go that high, to be honest, but it will be interesting to see.

 

[Zarate]

Any ideas why beppa has been so outperformed? At these levels I wouldn't consider touching bbi (just keep my beppa's) unless it is at least under half the price of beppa.

Going to read this annual report with a lot of interest tonight.

 

[ricee007]

Any ideas why beppa has been so outperformed? At these levels I wouldn't consider touching bbi (just keep my beppa's) unless it is at least under half the price of beppa.

Going to read this annual report with a lot of interest tonight.

Few points.

I don't think BBI will give $300M cash to BEPPA holders this year... but, I would say yes

Zarate... BEPPA is less liquid, and less researched, and less on the market for one... also, BEPPA has, this year, been at par, within 1c, or EVEN UNDER BBI... the fact that it was more than double it was against the run of the year... It's still > 50% higher than BBI, which, these last few months year, is very high.

Perhaps BEPPA already had the survival of BBI more firmly considered in it's price?

JacobKBall, I could see them going to 75c... but, with more shares and less cash. Personally, I think BBI is best left to deal with BEPPAs in 2012 when they should be able to get a loan / pay back half / over cash for the half / offer reset terms /etc....

But, others accurately point out that wuold seriously hinder a capital raising. Others accurately point out that, based on todays FinReport, the necessity of a capital raising is not a foregone conclusion.

 

[skyQuake]

Just trade the price action
Buyers were pretty aggressive today.

THink theres a bit more left to run early tomorrow.

 

[fureien]

Just trade the price action
Buyers were pretty aggressive today.

THink theres a bit more left to run early tomorrow.

i concurr. Despite having to slap myself for blundering with the accidental sell order -____-

i managed to secure an extra bit of profit between 9.5 and 11 cents. not much but hey, u grab watever u can.

The buyers were really aggressive, especially around the 9.6/9.7 mark. it fluctuated like crazy lol. I was watching it and i think i was the last person to have their order filled at 9.5 before it rose up again. *pats himself on the back for uber timing for once* I had to leave for uni so didnt get to watch the end of day movement but it was favourable for me so

I also think theres enough left for a bit more rise tommorrow. Im home all day so fingers crossed.

I was also reading the reports released today, i have to ask one stupid question

The "EPS" that they keep mentioning. Thats not Earnings per share right? i assume it stands for something else? cause it didnt make sense to me lol.

I hope everyone made a killing today. U guys were so quiet for once despite all the action. Probably all busy at the pub after taking profits

 

[investorpaul]

i concurr. Despite having to slap myself for blundering with the accidental sell order -____-

i managed to secure an extra bit of profit between 9.5 and 11 cents. not much but hey, u grab watever u can.

The buyers were really aggressive, especially around the 9.6/9.7 mark. it fluctuated like crazy lol. I was watching it and i think i was the last person to have their order filled at 9.5 before it rose up again. *pats himself on the back for uber timing for once* I had to leave for uni so didnt get to watch the end of day movement but it was favourable for me so

I also think theres enough left for a bit more rise tommorrow. Im home all day so fingers crossed.

I was also reading the reports released today, i have to ask one stupid question

The "EPS" that they keep mentioning. Thats not Earnings per share right? i assume it stands for something else? cause it didnt make sense to me lol.

I hope everyone made a killing today. U guys were so quiet for once despite all the action. Probably all busy at the pub after taking profits

The EPS they are refering to is the BBI EPS securities which is the formal name for BEPPA.

Great rise today, I just wish I had more BBI and BEPPA - time to check the bank balance, I would be happy to pick up more BBI at 9.5c and BEPPA at 15c afters todays announcement

 

[jacobkball]

Well, judging by the depth, BBI looks like it will have a nice jump this morning.

Not much for BEPPA though.

 

[Stakes]

fingers cross but pre open doesn't look too good!!!!
hopefully there is a huge switch around once things start moving this morning

 

[jacobkball]

Hmm, that really did change, as there was quite an overlap of buyers/sellers 15 minutes ago!

Another interesting day on the cards.

 

[Mitsimonsta]

We have one idiot to blame for the opening price:

I understand wanting to be first cab off the rank, but why not 16.9c???

 

[banska bystrica]

I sold 1 million BEPPA yesterday at average a tick under 18c. Looking to sell more but there is just no volume buying. Frustrating.
There was not much in the announcements we didn't already know and I am very surprised the stock flew like it did. Hence, why I took profits in BEPPA.
I shorted BBI at average 7.3c in the first hour yesterday so a mistake there. However, I am quietly confident reality will set in and by next Tuesday (after the daytraders have to settle or get out) BBI will be back below 7.3c. I could be wrong. Time will tell.

From Wilson HTM:

"BBI announced three pieces of news today:

1. it intends to internalise management,
2. management has reducing confidence in the feasibility of issuing Equivalent
Securities with respect to the EPS, and
3. it released its FY09 result.

We did not find any major valuation drivers in the announcements, particularly not worthy of the 90% share price increase seen today.
We have upgraded our target price from 15 cps to 17 cps. Our HOLD rating is
unchanged. BBI faces continuing challenges regarding fund level debt repayment and the potential dilution of its security holders from EPS and SPARCS conversion."

 

[Zarate]

John Kendrew seems to share your view saying he was 'surprised' by the 90% jump.

would post the article but im not allowed.

 

[alphaman]

I understand wanting to be first cab off the rank, but why not 16.9c???

Looks fair enough to me. He simply met the highest bid at the time, which was 16.6c. Of course that doesn't guarantee a sale, but it certainly has a better chance than 16.9c.

 

[fureien]

lol bbi looking like its gunna run outta gas. I didnt sell this morning. So stupid. Thinking it wud go higher. so greedy of me.

Currently consolidating between 9.3-9.5

I put a buy at 9 cents today but didnt get processed. not that its a bad thing lol.

 

[persistentone]

Any ideas why beppa has been so outperformed? At these levels I wouldn't consider touching bbi (just keep my beppa's) unless it is at least under half the price of beppa.

Going to read this annual report with a lot of interest tonight.

That one is easy to answer. BBI share value is in a life and death struggle. You have immediate risk of huge dilution in 2009 from SPARCs. You have the nearly 100% guaranteed outcome that in Administration BBI would see zero return to shareholders. You have a still real risk of a dilution by the EPS shares in or before 2012. So BBI has a much higher probability of returning zero, and bad news has an outsized effect on it, and likewise any (perceived) good news will have an outsized effect on it to the upside.

I think the BBI share price rise yesterday was just silly. I calculate in my model that even for EPS getting a 20 to 40 cent return is about all we can hope for. Had I owned EPS shares I would have been a seller at or above 18 cents, for sure. That would have given me nearly the same return without the benefit of the good news that would get us to 20 cents. I'm pretty sure that you would be able to buy those back at or below 15 cents.

 

[persistentone]

We have one idiot to blame for the opening price:

I understand wanting to be first cab off the rank, but why not 16.9c???

Which tool are you using to see the buy and sell queues? Is that a broker screen or some third party software?