BBI - Babcock & Brown Infrastructure

bellenuit · 14 April 2009

banska bystrica said:
The assets for BBI are in the books at COST price plus cap ex minus depreciation.

What are the tax implications on any asset sales?

Do they pay CGT on the difference between the sale price and the book value?

BB, I haven't had the time to take a detailed look at your figures yet, but do the net proceeds which you are applying against corporate debt allow for tax payable (if applicable) on the gain from the sale?

investorpaul · 15 April 2009

BEPPA has cracked 10cents, although it doesnt mean anything for the longer term holders (myself included).

Breaking 10cents (if it can close above it) will represent a close above a physiological level and it will be interesting to see if more "traders" jump on the stock.

Mitsimonsta · 15 April 2009

BBI is on a big run today too Paul..... BEPPA had a big run yesterday.

I see BBI at 7.4c, BEPPA at 9.9c

BEPPA is back to 1.85c discount to BBI.

fuzzie · 15 April 2009

Look at the volume on BBI. 33 million so far today. The last few days I think it has been running around 9 million.

Mitsimonsta · 15 April 2009

BEPPA back to 9.5c, BBI holding today's gains.....

Really hard to know what is going on in the market now.

banska bystrica · 15 April 2009

Today's price action does nothing for me. BEPPA at 9.5c is still a trashed bathroom price. The real action will start when DBCT is sold in my opinion.

Mitsimonsta · 15 April 2009

With the BEPPA 'discount' going larger today, plus the BBI price movement, have you sold BBI for BEPPA today Banksa?

banska bystrica · 15 April 2009

Mitsimonsta said:
With the BEPPA 'discount' going larger today, plus the BBI price movement, have you sold BBI for BEPPA today Banksa?

No. I continue to use free cash from the sale of other stocks to purchase BEPPA and will sell BBI when it reaches my BEPPA purchase price. Both BBI and BEPPA are not even close to fair value. We will have to await news regarding asset sales I would imagine before we get the real re-rating.

Largesse · 15 April 2009

Aussie market held up pretty well overall considering a dip on the dow. BBI and BEPPA traded particularly well.
However i think over the next week macro factors will stiffle this, and the broader market in general, somewhat.
I'm looking for a buy on BEPPA around 8.5c in the next 7 or so trading days hopefully.
Long term this one has alot of legs though.

banska bystrica · 15 April 2009

bellenuit said:
What are the tax implications on any asset sales?

Do they pay CGT on the difference between the sale price and the book value?

BB, I haven't had the time to take a detailed look at your figures yet, but do the net proceeds which you are applying against corporate debt allow for tax payable (if applicable) on the gain from the sale?

Plenty of carry forward tax losses although a hefty profit on DBCT might incur some tax. I'll raise it with the CFO.

investorpaul · 15 April 2009

banska bystrica said:
Plenty of carry forward tax losses although a hefty profit on DBCT might incur some tax. I'll raise it with the CFO.

BB do you contact Babcock and Brown Infrastructures CFO direct? is he normally helpful with this kind of stuff?

banska bystrica · 16 April 2009

investorpaul said:
BB do you contact Babcock and Brown Infrastructures CFO direct? is he normally helpful with this kind of stuff?

Best to email the company first as they have over 100,000 shareholders and simply don't have time to actually speak to every person who has a query.
That's what I did at first and one day the CFO rang me as he thought the response was better explained over the phone. I have since spoken to him on four occasions. He is extremely helpful with any queries regarding financials.
Investor Relations (Helen) is probably a better point of contact for you initially. Whilst every shareholder is very important to them, they know I have a large holding and are very obliging. If they don't know you, then for all they know, you could be an "inquirer" rather than an actual shareholder. Best to quote them your HIN number on your share statement. That way they know you are fair dinkum.

banska bystrica · 16 April 2009

Bought another 258,722 BEPPA at 10c this morning. This looks cheap for those with a 3 month view. Someone else is also starting to chip away at BEPPA.

investorpaul · 16 April 2009

banska bystrica said:
Bought another 258,722 BEPPA at 10c this morning. This looks cheap for those with a 3 month view. Someone else is also starting to chip away at BEPPA.

Is that the guy who is purchasing through a cross trade, has prob bought 120K + units by now?

It will also be interesting to see how the price holds up at the end of the day seeing as it lost all its gains yesterday (obviously this isnt of important to us, long term holders but is interesting to see anyway)

Mitsimonsta · 16 April 2009

BEPPA back to 10c at close, seems to be some big resistance at this level. Apart from some brief intraday peaks, it seems like we just cannot bust through at the moment.

At one stage today I was thinking we'd finish at 11c for the day and really set up a generally upward trend in the chart.

Still., I agree that there is going to be some market weakness next week, or at least I hope so. Would love the opportunity to buy myself more at sub-9c.

hardyakka · 17 April 2009

banska bystrica said:
Bought another 258,722 BEPPA at 10c this morning. This looks cheap for those with a 3 month view. Someone else is also starting to chip away at BEPPA.

I tried to stay away from acquiring more BEPPA, but could not resist it and have acquired another 250k over the last few days at prices ranging from 9.7 to 10.2. It is now by far my biggest holding and now I am drawing the line..again.

So I can diversify a little so does anyone have any other suggestions of BBI/BEPPA type stocks I can have a look at, or is that just wishful thinking on my part<s>

I am not yet looking at BBI because, whilst it has the potential for more upside in the longterm I am happy with the more risk averse nature of BEPPA, cushion of $2.4B NTA and expected leverage available to convert BEPPA into BBI once DBCT and Ports have been sold.

IMO the window for BBI/BEPPA at these prices rapidly closing and now it is only a matter of less than 10 weeks.

Good luck folks.

Cheers

Tysonboss1 · 17 April 2009

hardyakka said:
So I can diversify a little so does anyone have any other suggestions of BBI/BEPPA type stocks I can have a look at, or is that just wishful thinking on my part<s>

MCW may be worth a look, It has recovered a bit of it's lows of 10c but is still fantastic value, still paying a div in excess of 30%.

Mitsimonsta · 17 April 2009

Interesting movement in BBI and BEPPA today, a bit all over the shop. Up, down, down more, opening price, up, up a fair whack.

Fridays are always crazy on the ASX

investorpaul · 17 April 2009

Mitsimonsta said:
Interesting movement in BBI and BEPPA today, a bit all over the shop. Up, down, down more, opening price, up, up a fair whack.

Fridays are always crazy on the ASX

BEPPA is still having trouble getting over 10.5c, which is good for me I will be buying more next week, now that i have some extra cash.

Mitsimonsta · 17 April 2009

investorpaul said:
BEPPA is still having trouble getting over 10.5c, which is good for me I will be buying more next week, now that i have some extra cash.

Back to 10c now.

Some serious, serious resistance at 10.5c, looks like 9.8c-9.9c is the support level. It's been tested about 3 times today and held every time.

I wonder what it will take to break through the resistance. I have a feeling that once it does, then we might see it march to 15c easily. And then watch people get on.

BBI - Babcock & Brown Infrastructure

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