BBI - Babcock & Brown Infrastructure

investorpaul · 26 March 2009

my buy order just got hit then at 0.071 now I hold and wait. If the price drops lower over the next few days I may look at picking up some BEPPA.

It seems with BEPPA at their expiry that its up to BBI to decide whether to pay in shares, cash or roll the agreement over. Can someone confirm if i have interpreted this right?

banska bystrica · 26 March 2009

investorpaul said:
It seems with BEPPA at their expiry that its up to BBI to decide whether to pay in shares, cash or roll the agreement over. Can someone confirm if i have interpreted this right?

I can confirm you are wrong and suggest you read the terms and conditions on the BBI website.

I'm glad you thought the details on the put and call options were of some help.

investorpaul · 26 March 2009

banska bystrica said:
I can confirm you are wrong and suggest you read the terms and conditions on the BBI website.

I'm glad you thought the details on the put and call options were of some help.

Hi BB, thanks for the put and call stuff, I was trying to do some figures myself to workout what their potential commitment would be if they were exercised.

As for BEPPA i have only had a quick look at them so far, so i didnt read to much into them yet. I plan to do that over the w/e

banska bystrica · 26 March 2009

Paul,
If you go to www.bbinfrastructure.com.au you will find the BEPPA documentation icon on the front page. BBI EPS management cannot force BEPPA holders to rollover after 2012 but they can put forward a proposal to amend the terms on more favourable conditions (like a better interest rate etc) and then that proposal will have to go to a BEPPA vote. If the vote is carried, then all BEPPA holders would have to accept whatever the new terms are.

fuzzie · 26 March 2009

Interesting reading here.

I wonder if the BBI proposal to convert SPARCS to BBI takes into account an expectation that the BBI share price in May will be substantially different to today?

banska bystrica · 26 March 2009

fuzzie said:
Interesting reading here.

I wonder if the BBI proposal to convert SPARCS to BBI takes into account an expectation that the BBI share price in May will be substantially different to today?

fuzzie,

The proposal is to NOT convert SPARCS into BBI securities. It will go to a vote and hopefully, the majority will vote in favour of the proposed rollover conditions expiring 2010 with a 10% interest rate.

Viva_Las_Vegas · 26 March 2009

Hi Guys,
Amazing what an ASX "speeding ticket" can do to a SP eh?
I woke up today expecting BBI to keep moving forward thinking the pending announcement yesterday drove the price up, and I "assumed" the actual announcement would continue up and up and up.

Could all the sellers today just be profit takers? Or did the announcement not amount to what yesterdays buyers anticipated? Any thoughts?

Tysonboss1 · 26 March 2009

alphaman said:
Well, you are betting on BBI to survive, hence BEPPA will go to 100, does it really matter whether you get in at 8c, or 4c? It's going to be a huge win anyway, if you win.

yes, big difference, if you got in at 4c then you buy 2x the amount of shares as you would for 8c, so you double you profit by buying at 4c,...

Tysonboss1 · 26 March 2009

Viva_Las_Vegas said:
Hi Guys,

I woke up today expecting BBI to keep moving forward thinking the pending announcement yesterday drove the price up, and I "assumed" the actual announcement would continue up and up and up.

Patience young sky walker,... 40% in a couple days is alot.

Remember the bear may fall out the window, but the bull comes up the stairs, it will take time.

you will go crazy if you stress over every up and down, just let things roll along does it really matter if you have to wait a year or two or three to get a 1000% return.

Viva_Las_Vegas · 26 March 2009

Tysonboss1 said:
Patience young sky walker,... 40% in a couple days is alot.

Remember the bear may fall out the window, but the bull comes up the stairs, it will take time.

you will go crazy if you stress over every up and down, just let things roll along does it really matter if you have to wait a year or two or three to get a 1000% return.

Yoda,

Thanks for the re-assurance. Forgive me for I am new to the Jedi and the force is weak in this one.
I try to not let the small changes in price bother me, but I sort of look at it from the point of view that I am missing out on more units that i could have got at the cheaper price. But then again I am the same idiot who sold his cheap ones yesterday and jumped in high today.

Stoopid is a stoopid does = me at the moment.

Disclosure 55000BBI/45000BEPPA

onshow · 26 March 2009

Viva_Las_Vegas said:
Yoda,

Thanks for the re-assurance. Forgive me for I am new to the Jedi and the force is weak in this one.
I try to not let the small changes in price bother me, but I sort of look at it from the point of view that I am missing out on more units that i could have got at the cheaper price. But then again I am the same idiot who sold his cheap ones yesterday and jumped in high today.

Stoopid is a stoopid does = me at the moment.

Disclosure 55000BBI/45000BEPPA

dont worry im in the same boat sold low and bought a whole lot today in at .08cents. But im confident it will go back up just got to sit tight, its just a few profit takers bringing it down today! lol
what do others think is a fair price target by mid year and end of year is?

alphaman · 26 March 2009

Tysonboss1 said:
yes, big difference, if you got in at 4c then you buy 2x the amount of shares as you would for 8c, so you double you profit by buying at 4c,...

Numerically correct but so irrelevant. Yes price could fall after you buy, but it could also run away from you if you wait. Either way it makes a "big" difference" on your lost profits. But no one can tell you which way price will definitely go.

All you know is that at current price, it's at least a ten bagger*. So what do you do when you see a ten bagger? You grab it now! You could go all in, or average in, whatever. But you don't procrastinate over a ten bagger.

*The ten bagger target is based on you guys' optimistic assessment of BBI's long term prospects.

eMark · 26 March 2009

Re - "*The ten bagger target is based on you guys' optimistic assessment of BBI's long term prospects"

I take your commenting from the outside in? Is that your assessment, or a summary of what you have read of others (or both)?

Tysonboss1 · 26 March 2009

alphaman said:
Numerically correct but so irrelevant. Yes price could fall after you buy, but it could also run away from you if you wait. Either way it makes a "big" difference" on your lost profits. But no one can tell you which way price will definitely go.

All you know is that at current price, it's at least a ten bagger*. So what do you do when you see a ten bagger? You grab it now! You could go all in, or average in, whatever. But you don't procrastinate over a ten bagger.

*The ten bagger target is based on you guys' optimistic assessment of BBI's long term prospects.

I aggree,... How ever I am also the guy that has been buying into the market for the past year as it falls lower and lower, So offcourse I have scolded myself for being to eager to enter the market, and I know that I would be in a better position if I had waited.

Atleast now I am sitting on a larger portfolio than I have ever had, and due to recent prices I have averaged down to quite low levels, and when divs return to normal levels ( as I said to viva, I don't mind waiting ) my portfoilo cash flow should be over $50G a year, and if beppa does pay out $1.20 I will clear my home loan.

YELNATS · 26 March 2009

Tysonboss1 said:
Atleast now I am sitting on a larger portfolio than I have ever had, and due to recent prices I have averaged down to quite low levels, and when divs return to normal levels ( as I said to viva, I don't mind waiting ) my portfoilo cash flow should be over $50G a year, and if beppa does pay out $1.20 I will clear my home loan.

A few "ifs", "whens" and "shoulds" there, Tyson, but I hope it all comes home for you. (darn 100 chars)

alphaman · 26 March 2009

eMark said:
I take your commenting from the outside in? Is that your assessment, or a summary of what you have read of others (or both)?

That's a summary of what I've read of the holders. I mean, holders are saying BBI has great assets, great cash flows, paying off debts is just a matter of time. The sellers have been selling simply out of ignorance, panic or fear. IF true, and therefore BBI does survive, BEPPA has to rise towards face value. In fact it may even trade above 100 because its interest rate has been reset higher hasn't it? So it's easily at least a ten bagger.

Viva_Las_Vegas · 26 March 2009

Tysonboss1 said:
Patience young sky walker,... 40% in a couple days is alot.

Remember the bear may fall out the window, but the bull comes up the stairs, it will take time.

you will go crazy if you stress over every up and down, just let things roll along does it really matter if you have to wait a year or two or three to get a 1000% return.

I think a 1000% return in 2 to 3 years is a bit optimistic considering BBI was only at $1.50max or something like that. I think you need to back off the throttle there Han Solo.
My concern is, with all the money printing going on and crazy inflation being a possibility wouldn't that technically devalue our shares should they reach the high milestones we expect, essentially reducing REAL gains?

fuzzie · 26 March 2009

banska bystrica said:
fuzzie,

The proposal is to NOT convert SPARCS into BBI securities. It will go to a vote and hopefully, the majority will vote in favour of the proposed rollover conditions expiring 2010 with a 10% interest rate.

The ASX release on proposed SPARCS reset terms states "The BBINNZ directors’ current intention in respect of any Conversion Requests that may be received by 26 March 2009 that relate to the 17 May 2009 conversion, is that those BBI NZ SPARCS will be exchanged for BBI Stapled Securities. ....17 May - Conversion date for those that elect to convert 50% of holding "

What's the point of making an election to redeem if it can be overruled by other security holders?

banska bystrica · 26 March 2009

fuzzie said:
What's the point of making an election to redeem if it can be overruled by other security holders?

The point being what if the meeting doesn't get the 75% needed to pass? Then you would want to have your "Request for Conversion" form in wouldn't you?
I suspect the majority of SPARCS holders will have requested conversion knowing it is highly unlikely to actually happen.

banska bystrica · 26 March 2009

Viva_Las_Vegas said:
I think a 1000% return in 2 to 3 years is a bit optimistic considering BBI was only at $1.50max or something like that.

Viva,
1000% profit for BEPPA from today's price of 8c is 88c. Now the redemption price in 2012 is $1.00 + accrued interest. So I would say so long as BBI survive, a 1000% increase on the BEPPA price is actually a bit conservative.

Regarding BBI: If they are corporate debt free within 12 months, the stock will be around 40c+ in 12 months time. 65c/70c in 3 years time is not unrealistic. There's your 1000%.

BBI - Babcock & Brown Infrastructure

investorpaul

banska bystrica

investorpaul

banska bystrica

fuzzie

banska bystrica

Viva_Las_Vegas

Tysonboss1

Tysonboss1

Viva_Las_Vegas

onshow

alphaman

eMark

Tysonboss1

YELNATS

Non illegitimus carborundum

alphaman

Viva_Las_Vegas

fuzzie

banska bystrica

banska bystrica

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