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As I understand it, it writes off all the asset level (non-recourse) debt for that asset. How much cash was left over after that was not disclosed.
Does this write off some of their debt? Or does it write off the debt of its subsidiary?
Hi fellow death spiral investors!
Hi fellow death spiral investors!
What is everyone's opinion regarding BBI's announcement relating to the 100% sale of GASCAN? Does this write off some of their debt? Or does it write off the debt of its subsidiary?
Note: There is a thread on this site called best and worst stocks of 2008, BBI rates an honourable mention as the worst.
Good for all those who wish to buy cheap!
bellenuit,
Good post and I'll deal with those questions later.
select/macrae12,
Still waiting for some factual evidence that BBI is a dog of a stock with no future. Waiting with baited breath......still waiting.
BB,
I don't quite understand why you would attempt to associate me with another person but perhaps that is a guide to your research or more to the point, your desperation.
What I do find Intersting is that you dealt with my post before you dealt with BELLENUIT'S post. Bellenuit is still waiting for a reply.
It's also not appropriate to continually refer to another chat site.
I stand by my comments.
Explorer has agreed to acquire a 100% interest in Gascan and its subsidiary. The net transaction proceeds will be applied to repayment of IEG asset level debt and repays the debt associated with Gascan in full. The transaction results in an accounting loss on sale of approximately €13 million.
From today's announcement:
Interesting, I seem to remember quite a few BBI cheerleaders claiming that none of their assets need to be written down because they didn't overpay.
The Fundamental Analyst???
Your signature is very questionable dhukka. That asset is so insignificant it doesn't even register on the radar. Do you understand the difference between an accounting loss and a cash loss? When you work that out, please rejoin the debate. Until then, please do some financial analysis homework. It is very frustrating trying to debate facts with people who are have such limited knowledge. That is one problem with share forums. Every poster has a different level of knowledge and for those that have done hundreds of hours of research it is a source of much frustration.
Would anyone be interested if I started a BBI blog? All views welcome so long as there is factual supporting evidence.
select/macrae12,
Still waiting for some factual evidence that BBI is a dog of a stock with no future. Waiting with baited breath......still waiting.
A base normally offers a chance of upside breakout, but it's not very meaningful when the base is sitting above the zero line. Price cannot go negative, so any dog (or hidden gem) has to pause above zero.The good news for holders is from a T/A point of view it is building a solid base with volume coming in at the right places - one to watch for now.
Banksa,
I'm sure we would all agree that we enjoy your analysis and comments, But everytime someone questions the future of BBI or BEPPA payouts you seem to take it personally.
Most of us (I for one) are inexperienced when it comes to the stock market, and although BBI looks like it has good assets etc we all have our doubts at times. The volatility of the markets doesn't help either, and to give an example if GM motors in the USA can be on the brink of bankruptcy then no company is safe(I do realise they are totally different comanies).
Although as you have mentioned and I agree.....the reward vs risk in this one is appealing.
Yesterday I posted some qoutes from an article where DBCT is estimated to be worth $1b far greater than the $250b you stated earlier, this sounds promising if correct.
I urge you to keep up your posts and keep forwarding both positive and negative info regarding BBI and BEPPA and don't lose your patience. We are all here to share and learn.
A base normally offers a chance of upside breakout, but it's not very meaningful when the base is sitting above the zero line. Price cannot go negative, so any dog (or hidden gem) has to pause above zero.
BB,
Further to your compelling arguements re BBI's asset worth members should have a read of this article
http://steelguru.com/news/index/200...nts_Macquarie_for_sale_of_flagship_asset.html
In particular one qoute "The company's situation has been worsened by the slump in its share price, which now values BBI at only USD 154 million. That is far below the value of its individual assets such as Dalrymple Bay and has ruled out any prospect of BBI raising new capital to pay back its USD 10 billion debt."
AND
"Analysts have estimated that Dalrymple Bay could be worth USD 1 billion if its own debt of USD 1.7 billion is excluded. But potential buyers will have to take on those borrowings as part of any sale of the whole facility."
This is the one I am referring to, analyse it, dissect it, pull it apart BB I am keen to find out why the differing estimates as to the price of DBCT.........us BEPPA holders are riding on this one.
I said DBCT is worth EV $2.5Bn minimum which equates to $800M after debt. That is only $200M less than your quoted source of $1Bn which implies an enterprize value of $2.7Bn. We are both pretty much in the same ballpark.
From one of my spreadsheets:
Asset, Asset Ranking, Net equity
NGPL: 1, $1.3Bn
DBCT: 2, $800M
AETD: 3, $700M
PD Ports: 4, $500M
Euroports: 5, $400M
IEG: 6, $350M
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