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BBI - Babcock & Brown Infrastructure

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jono1887 said:
what makes you think that it wont go under?
btw.. whats the process after a company goes under.. do stockholders see anything at the end?
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Copanies will go under only if there is default on loan and administor called in by debtor. In that case, Normally s/h will have nothing left Especially for highly leveraged company like bbi, while debt holder will try to recover their losses through asset sale.
 
it's not a game of hope, i agree, the risks are high,
and without sounding old school

"hold on to your money and rebuild, using simple maths"

there are far too many examples of company's going under, especially heavily geared ones

cheers and good luck ( "i mean "math" )

PS:: banks are still conservative in regards to refinance
 

A test of solvency is that a company has to be able to meet its' debts "as and when they are due". If the finance needed to be rolled over is not going to be rolled over on the date the payment is due and the company is not in a position to pay the due amount from funds on hand, then the company is insolvent. If the directors are aware that the company is (or will become) insolvent, they are required to appont an administrator themselves (voluntary administration) and not wait for a creditor to initiate the process.
If the directors allow the company to continue to trade, while they know the company is insolvent, then they expose themselves to personal liability for debts incurred by the company during this period.

Hopefully the banks will agree to an extension or a refinance package, while the board continues with its' struggle to stay afloat.
 
Lot of hope in this thread for a while, now some objectivity has started to enter and the emotion is out of the equation.

There is an axiom along the lines of " A rising tide raises all boats" The emotion got BBI off the bottom for a while and the tide is still rising however the BBI/ Beppa boat is falling under the waterline. That speaks volumes. There are many boats going up with the tide so why would any sane person jump in one with holes in it?

This isn't an i told you so, just a suggestion that it is better to cut and run irrespective of whether you are positive or negative on this stock, just put your hard earned somewhere less foreboding.

There are now more than 50m units on the buy side of BBI after going to as low as 21m two days ago so this may bob its head up for a little while however be very wary as for every buyer the sellers are two fold now.
 
Largesse said:
QUICK! BBI IS GOING BACK UP AGAIN!

CHOO CHOOO!

LOOK AT ALL THE VALUE! DONT MISS OUT!



bzzzzzzzt
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Alright, so you've made your point. Repeatedly. We all know where you stand. Must you continue being a total tool and make these types of posts?
 
Well,

I bought at 4.7 cents and just sold at 4.5 cents.

I have just entered the realm of the stock market and placed my very first order not too long ago. I bought BBI @ 6.6 and 7.2 and sold them @ 9.3.

I have recently been reading one of Dr. Alex Elder's books and am learning so much about trading, well more along the lines of learning about how much I need to learn and the basics of analysis, psychology and money management.

When I entered into BBI at 4.7c everything I had learnt so far was screaming at me not to do it. I arrogantly thought well I have been watching BBI for months now and it should go back up and I will make huge profits . Obviously I was stupid and got burnt.

I am however happy this happened because I learnt what happens when you go against your game plan. I will approach stocks without emotion now and especially without greed or fear.

As for BBI, I think I will stick clear of it and go to stocks that are stable with a nice balance sheet

101
 
To those that are trading bbi, unless you are trading momentum, I don't understand why you choose bbi over beppa. Unless maybe just now that beppa has hit 8c - almost double bbi.

Beppa has a chance of having some value, if it is converted at any substantial portion of the $1 face value but bbi can only go down from here with all the dilution..... or insolvency.

I suppose there is the odd chance of asset sales at decent prices but unlikely. I am holding a smaller parcel of beppa but it is only on the speculation that conversion is at a substantial portion of face value...
 

Good call 101. Don't make the mistake of looking back and wondering what might have been with BBI. They may go back up and down for a few months yet but why lose the sleep when there are so many other less stressful opportunities? By all means review and learn but no regrets.

You have made some money and are up on the total BBI trade by the looks so enjoy, shout yourself a beer and find another vehicle.
 

Thanks Abyss, I definitely won't look back and wonder "what if". Though I hope it goes up for those who have hung on rather than it bleeding them dry.
 
jono1887 said:
what makes you think that it wont go under?
btw.. whats the process after a company goes under.. do stockholders see anything at the end?
Click to expand...

There is a very good chance that the deal will come through based on the recent announcement but there's is no guarantee. So I guess its worth the punt for the next few weeks/months till the announcement. SP will normally spike after announcement so I am hanging on. I still think its worth the gamble.
 

well say the deal went through.. what exactly would happen. Debt would get refinanced?? Balance sheet in a better position??
 
jono1887 said:
well say the deal went through.. what exactly would happen. Debt would get refinanced?? Balance sheet in a better position??
Click to expand...

20:1 consolidation and massive dilution thanks to cornerstone investor imo. BBI won't look so attractive then...
 
skyQuake said:
20:1 consolidation and massive dilution thanks to cornerstone investor imo. BBI won't look so attractive then...
Click to expand...

so what would be the best case senario?? and whats with all these buyers lined up... theres almost as many buyers and sellers now. Who would want to buy this in its current state?
 
Yes, these gains in BEPPA (from the low) are interesting, that's for sure. The news hasn't changed. The scenario hasn't changed. So what's left? Could it be the CI slowly chomping all these shares up? Surely the fact that BEPPA is rising means that someone out there is seeing something in it.

I honestly don't know. I still can't shake the feeling that we're being manipulated. Now that the price has been manipulated down so severely, will we see a slow rise back to previous levels?

I'm glad I didn't sell in panic a couple of days ago.
 

My opinion is that there are a lot of short selling in the last few days due to doom day scenario and emotions which pushed the sp right way down. Today you see some recovery and less emotions. To those skeptics why are there so many buyers today???
 
$$Punt$$ said:
My opinion is that there are a lot of short selling in the last few days due to doom day scenario and emotions which pushed the sp right way down. Today you see some recovery and less emotions. To those skeptics why are there so many buyers today???
Click to expand...

Net 34,000 BBI reported short sold as of yesterday.
Very hard to short. Nothing reported on monday.
 
Zarate said:
Yea I called up comsec to ask about short selling bbi. They don't offer it. Do you know where bbi can be short sold?
Click to expand...

The situation is so bad already on BBI - the share price is trading at a price implying heavy dilution + may be a bit of option premium (on the odd chance that the cornerstone investor buys in at 7/8c or a buyer for some assets emerge).

Any short trade surely doesn't offer the greatest risk / reward!
 
I am guessing a tone of day traders are looking to get in and get out with a nice profit.

I am also guessing that the price will go down further pending the announcement. Either the cornerstone investor will reach a deal or will not. If the CI does sign up then the prices will be further diluted and go down. If the CI does no sign up then BBI are in a world of trouble and prices will go down.

I am looking to rebuy in at a cheaper price pending the CI signs up. Diluted prices will offer a great buy. The reason I don't agree that the prices have already been diluted is that BBI should have announced to inform investors that the dilution process was underway (correct me if wrong).

If I was in BBI when the announcement was made i'd likely see red red red.

I won't enter BBI again until an announcement has been made and the prices have been diluted. If the CI doesn't deal up then I won't enter BBI ever unless Short Selling which I can't do with Comsec.

I am a novice and have just strted trading, this may not be the best way of thinking but it is the logic I have come up with

Peace!

101
 
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