In my situation, it is still well over double bank interest, actually it would be close to three times, even if it did take 2 years to get the payout.good return? even if it takes the administrators 2years to give you your 20cents?
I am prepared to buy more BEPPA but only at 6c or cheaper. I have more than enough if things work out positively so I don't need to chase the stock.
Nvm.....
OK sorry to be a pain but can someone explain to me what BEPPA is. Is it a stock that is actually a loan or something like that? e.g. its BBI's debt packaged as a security.
I'm a newbie (obviously) and I've only invested in FPO shares to date. Including BBI (doh), a painful knife cut and one for the lesson book.
thanks in advance
I can see that value investing is the favoured approach of quite a few of you who own BBI, or are considering investing in it.
An entirely different school of thought is that performance, not perceived value, is a better basis for stock selection.
Here are my views on BBI for what they're worth.....
Sticking with BBI could prove a costly mistake for owners of this stock.
Sure, its share price increased six fold in recent months, but now it's lost more than half that gain in just the last few days as it goes into free fall.
This is the sort of volatile price action that results when investors are uncertain what to make of a stock, and their sentiment swings back and forward between wild exuberance and doom and gloom.
The word is that BBI is drowning in debt. That alone should be enough to set alarm bells ringing and send prudent investors heading for the exit gate. Time enough to reinvest in the company later if it manages to overcome its problems and get back on a sound footing.
A couple of years ago I expressed similar opinions on the GTP thread in relation to that stock. My view ruffled the feathes of a couple of GTP investors who then prodeeded to give me a lambasting. They're not lambasting me now that GTP has folded.
I can never see any point in sticking with dogs of stocks while they wallow in non-performance for extended periods of time. It can be a very costly way to have your funds invested, even if they pay a decent dividend, and even if the company eventually comes good. It ties up your capital and prevents you from investing in performing stocks. At worst it can result in the loss of 100% of your investment, as GTP investors can attest to.
I can see that value investing is the favoured approach of quite a few of you who own BBI, or are considering investing in it.
An entirely different school of thought is that performance, not perceived value, is a better basis for stock selection.
You are entitled to your opinion. BBI has been a stellar performer for me. I first posted on here about BBI in November when I purchased 800,000 at 2.5c. I have exited my entire BBI holding and used the funds to buy BEPPA. This switching has been happening for months.
The last of my BBI's were sold at 11.5c on Friday morning after selling 1.5M at 12c about fifteen minutes earlier.
The net result is I hold a large quantity of BEPPA at average price 3c. This includes the cash I have taken off the table in selling the remaining 2.5M BBI's over the past fortnight. I have not paid more than 12.5c for BEPPA.
I think the rewards of doing the hundreds of hours of research are tremendous. To have a very sizeable position in BEPPA at such a low average sure beats putting my money in CBA or WES.
It's all about risk/reward. If you wait until there is little risk, you will end up paying 30c+ for BBI and 50c for BEPPA. There are still risks (Euroports, PD Ports) but that's why the stock is under 8c.
Every viewpoint is welcome as each provides a different perspective on a stock.
Whether you are a value or growth investor, isn't the end objective performance? To my mind performance is simply the end measurement of an investing strategy.
Cheers
Yes, performance is the end objective.
I was referring to the practice of selecting stocks on the basis that they're performing strongly right now, as opposed to buying non-performing stocks because they've fallen far enough to appear cheap, then you stick with them in the hope they'll perform well over the long term.
Such a strategy might be sound enough if the company has decent fundamentals and you can afford to go for lengthy periods with little or no return on your money.
But it has to be a risky practice in stocks that are drowning in debt.
There are many examples of debt-ridden stocks that brought investors undone when they followed that strategy. TIM and GTP are recent cases. I wonder if BBI will be another.
The net result is I hold a large quantity of BEPPA at average price 3c. .
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