BBI - Babcock & Brown Infrastructure

[bandicoot76]

after reading the article in fridays financial review it seems to me that the new 'interested party' is more interested in acquiring some of BBI's prime assets rather than stock options so that should be a positive re dilution but the negative could be loss of quality assets at less than market prices... if it goes ahead i wonder what existing bbi shareholders will be left with? still i guess something is better than the SFA we can expect from the massive dillution of the previous 'cornerstone investor' offer or the alternative of receivership! time will tell i guess... a 50/50 bet imo!

 

[Stakes]

hahaha BBI punters....

It looks like this announcement might be more than 'another spike'.... if things dont work out, and its not likely that they will, BBI will be in between a rock and a hard place if you ask me.... they've had their turn to bloom but things have taken their hit, we're just getting our punch in the nuts now....

 

[jono1887]

hahaha BBI punters....

It looks like this announcement might be more than 'another spike'.... if things dont work out, and its not likely that they will, BBI will be in between a rock and a hard place if you ask me.... they've had their turn to bloom but things have taken their hit, we're just getting our punch in the nuts now....

Looks like the annoucement did not lead to another spike... quite disappointing actually. Not much movement at all... I was hoping to sell out on an upswing but no luck there.

What date is their debt due next month??

 

[drsmith]

Looks like the annoucement did not lead to another spike... quite disappointing actually. Not much movement at all... I was hoping to sell out on an upswing but no luck there.

That's because there was nothing substantial in the announcement itself (no agreement on any recapitalisation as such).

 

[Jez]

That's because there was nothing substantial in the announcement itself (no agreement on any recapitalisation as such).

YES!

Just like the last BS announcement, this was a BS announcement too. I should have sold earlier, but after the first announcement a couple of weeks ago, I held on saying to myself, this is going to come back like Centro. I sold out at 53 cents, lucky I got double that loss in gains this year from other real come-backs!

My Family Tax Benefits wont be hit so hard, is one positive!

Good luck to everyone else gambling on this "Dog"!

 

[suhm]

I'm pretty surprised how well the shares are holding up, considering managment to an axe to the NAV when reporting their results and especially now they say that sales are likely to be below book value and that bank debt holders might not get a full return of their money??

I was still looking at the BEPPAs to participate in an upcoming recap but at present its more like a crap shoot then an investment to me.

 

[banska bystrica]

What's the use in having "positive equity" on paper if your current liabilities exceed your current assets by $426.5M because you can be assured, in a liquidation, your positive NTA will be wiped out quicker than jack flash.

People need to see the situation for what it is. All this talk I read on forums of the "stock rallying to 20c, 30c" is just pure fantasy/hope without factual basis. The harsh reality is the situation is very, very bleak. There is nothing to look forward to if you are an equity holder because in my opinion the equity is worthless (in reality, rather than on paper in a perfect world). Any new equity will be in favour of the new investor, not existing holders.

If BBI go into VA, do you honestly give them a realistic chance of trading their way back to prosperity? If the publishers at Collins want a new meaning for the word "denial", they need look no further than the BBI threads on stock forums. I call it as I see it.

In November 2008, the NTA was $1.00+, the stock price was 3c, there was no imminent threat of devastating dilution and time was on their side regarding asset sales, especially DBCT.
All that has changed and yet the stock price is now 70% higher than in Nov 2008. When the fundamentals change, investors need to be swift and protect their capital.

I currently hold nil BBI and nil BEPPA. I might be prepared to participate in a cap raising at a rock bottom post dilution price. We just need to see what the board decides on.

The Board has two choices:
Massive dilution or administration.
By going with BAM, they act in the best interests of securityholders. Painful, but it ensures survival. BBI directors may just have to swallow the poison pill and let BBI holders wear the pain.

 

[awg]

He yous all, listen to BB

he has played his cards right

I sold out of Beppa a while back, in tranches, very small profit overall..oh well

sold BBI ages ago, very small profit

the odds are now

a) all holders will be diluted to the sh!thouse
b) admin =0
c) tiny chance for the BEPPA holders to make $

 

[angk43]

Hi i'm new to this, any thoughts on BBP then as the stock prices of both run pretty similar figures.

Very concerned as holding a ffew BBP shares.

 

[drsmith]

People need to see the situation for what it is. All this talk I read on forums of the "stock rallying to 20c, 30c" is just pure fantasy/hope without factual basis. The harsh reality is the situation is very, very bleak.

The harsh reality of the situation has been very, very bleak for BBI since the commencement of the GFC.

 

[select]

BB,

You are a piece of work.

You have flogged BBI all the way DOWN from +40c. You slagged everybody that posted honest opinions. And now you have the hide to start bagging BBI to all that will listen.

Are you incapable of recognising that your research was wrong and you got BBI wrong? You screwed up big time. Lost big time and wasted OPPORTUNITY COST big time.

No scalps for you.

What's the use in having "positive equity" on paper if your current liabilities exceed your current assets by $426.5M because you can be assured, in a liquidation, your positive NTA will be wiped out quicker than jack flash.

People need to see the situation for what it is. All this talk I read on forums of the "stock rallying to 20c, 30c" is just pure fantasy/hope without factual basis. The harsh reality is the situation is very, very bleak. There is nothing to look forward to if you are an equity holder because in my opinion the equity is worthless (in reality, rather than on paper in a perfect world). Any new equity will be in favour of the new investor, not existing holders.

If BBI go into VA, do you honestly give them a realistic chance of trading their way back to prosperity? If the publishers at Collins want a new meaning for the word "denial", they need look no further than the BBI threads on stock forums. I call it as I see it.

In November 2008, the NTA was $1.00+, the stock price was 3c, there was no imminent threat of devastating dilution and time was on their side regarding asset sales, especially DBCT.
All that has changed and yet the stock price is now 70% higher than in Nov 2008. When the fundamentals change, investors need to be swift and protect their capital.

I currently hold nil BBI and nil BEPPA. I might be prepared to participate in a cap raising at a rock bottom post dilution price. We just need to see what the board decides on.

The Board has two choices:
Massive dilution or administration.
By going with BAM, they act in the best interests of securityholders. Painful, but it ensures survival. BBI directors may just have to swallow the poison pill and let BBI holders wear the pain.

 

[banska bystrica]

The fundamentals of BBI changed after the Corus news hit in April. I'm very pleased that others on this forum also sold at circa 17c after buying in Nov 2008 below 3c (800K at 2.5c as posted by me in November). One has to be nimble to lock in profits in this game.
BBI will survive with a capital injection but it will be massively dilutive. No need to be exposed right now but perhaps post dilution via a placement might be an astute move? We await the details of any deal and then we can decide whether to trump up cash for the placement or not.

 

[select]

BB,

800,000 shares at 2.5c LOL, $20,000 worth? oh you big spender you. But no, you were in much higher and much deeper than that.

Have you forgotten to tell people how many you bought above 20c?

Or am I as mistaken about this as I was about BBI's fundamentals?

The fundamentals of BBI changed after the Corus news hit in April. I'm very pleased that others on this forum also sold at circa 17c after buying in Nov 2008 below 3c (800K at 2.5c as posted by me in November). One has to be nimble to lock in profits in this game.
BBI will survive with a capital injection but it will be massively dilutive. No need to be exposed right now but perhaps post dilution via a placement might be an astute move? We await the details of any deal and then we can decide whether to trump up cash for the placement or not.

 

[investorpaul]

BB,

800,000 shares at 2.5c LOL, $20,000 worth? oh you big spender you. But no, you were in much higher and much deeper than that.

Have you forgotten to tell people how many you bought above 20c?

Or am I as mistaken about this as I was about BBI's fundamentals?

Select - I can hardly see how you can place any blame/or whatever you want to call it on BB. He openly posted his research and positions. It is up to other people to make their own decisions in regard to buying/holding/selling.

As you would know companies/potential returns/the market are constantly changing. I even evaluate my blue chip holdings on regular basis if the risk:reward ratio or the fundamentals change I may decide the sell. The exact same thing happened with BBI. If BBI had managed to sell their assets and remove debt the SP would have improved dramatically, this may have allowed them to do their own cap raising tat is less dilutive than the CSI proposal. The funds from which could have taken care of SPACs and/or BEPPA in the future.

Unfortunately it didnt work out but everyone going into BBI/BEPPA should have made themselves aware of the risks prior to buying. By the way if people followed BB in selling on the day the trading halt was lifted those who bought under 10 c would have made a small profit.


On another note: BB have you go your Blog/Site up and running yet, I always thought it would be good if a site existed where a small group of individuals (maybe 20) could contribute indepth discussion/research on particular stocks, with the site providing the avenue to share the research.

 

[select]

investorpaul,

If you know the history of a poster you will know the poster.

Ask BB about Zinifex and Allegiance Mining.

I believe he was very negative about Allegiance Mining prior to the takeover offer by Zinifex. Once the Zinifex offer was made he/she recommended people own Zinifex in spite of the takeover offer by Zinifex.

The reason given was that Zinifex management were credible operators and AGM shareholders should surrender their ownership of their nickel mine because only Zinifex management could do anything with it.

Zinifex ended up buying AGM but due to a deteriorating nickel price the mine was shut down.

After Zinifex got their hands on AGM they merged with Oxiana and became OZ Minerals.

The rest is history.

Also ask BB about AZC. And any other stock you care to think of.

You will find that BB has a history of exposure to stocks that become administration candidates.

By all means, join him/her in a private blog sight and limit the exposure to crap to just 20 people.

 

[drsmith]

The fundamentals of BBI changed after the Corus news hit in April.

People need to see the situation for what it is. All this talk I read on forums of the "stock rallying to 20c, 30c" is just pure fantasy/hope without factual basis.

BEPPA holders: What would you say to the following if it were offered to you some time in 2009/10 after DBCT and PD Ports are sold?

Convert every BEPPA held into 35c cash and 2 BBI securities.

Hypothetical of course but would be interested in the thoughts of BEPPA holders. Remember of course that if that proposal was passed, it would indeed help the price of BBI as well as any threat of massive dilution in 2012 disappears. This hypothetical proposal dilutes BBI by another 1.6Bn shares but also eliminates $800M worth of debt.

Personally I would vote YES.

The third quoted comment was posted in July 2009.

April comes before July does it not ?

 

[banska bystrica]

investorpaul,

If you know the history of a poster you will know the poster.

Ask BB about Zinifex and Allegiance Mining.

Ah yes, the wonderful AGM. Followers bought in at 12c and sold at 90c. A wonderful result for all concerned. Zinifex then put in a takeover bid which propped the price to $1.00 during the GFC.
A most memorable result indeed.

AZC? Well, we all make mistakes. I underestimated management's incompetence. C'est la vie. I suppose "select" never makes even one bad investment. Talk about a piece of work.

 

[banska bystrica]

The third quoted comment was posted in July 2009.

April comes before July does it not ?

Followers know I sold all my BBI in April. I subsequently sold BEPPA later at a very healthy profit circa 16c after being free carried. A wonderful result.
You must be "select"s brother? Pick out little snippets of posts and try and create a drama.

 

[banska bystrica]

One must keep in mind the risk/reward ratio. The higher the risk, the higher the potential upside so obviously the strike rate will be lower when following this end of the market than if you were buying the ASX 100. That's just commonsense but some on here just don't understand probability theory.

 

[banska bystrica]

As you would know companies/potential returns/the market are constantly changing. I even evaluate my blue chip holdings on regular basis if the risk:reward ratio or the fundamentals change I may decide the sell. The exact same thing happened with BBI

Paul,

You are spot on. People need to have an understanding of risk/reward to have any chance in the market. People like "select" get eaten for breakfast by the market. Maybe that's why they get so angry?
Anyone who thinks investing at the speculative end of the market doesn't result in some failures, fails to really have any idea about successful investment strategy.