gargh bbi back up near 9 cents again, i sold too early lol
wonder if this will hold up, but at least we know the support is around 8 cents
The whole market is up today, BBI and BEPPA have dropped like a stone over the last couple of days so a relatively small bounce today is nothing to get excited about.
Still alot of selling pressure on both BBI and BEPPA IMO
Hi BB
is this a typo?
lowest price for BEPPA ever was 4c
cant figure out how you could have that average buy price
Hi BB
is this a typo?
lowest price for BEPPA ever was 4c
cant figure out how you could have that average buy price
The whole market is up today, BBI and BEPPA have dropped like a stone over the last couple of days so a relatively small bounce today is nothing to get excited about.
Still alot of selling pressure on both BBI and BEPPA IMO
ah right, i hadnt looked at the volume yet. yeh there are indeed still more sellers than buyers. but i will keep an eye on it nevertheless. i need that 40% of my portfolio back lol
or do you reccommend that if i put my money into antyhing it wud probably be beppa over bbi? this is kinda what ive inferred from reading all these pages
I originally bought BBI at average 7.5c.
Arbitraged BBI/BEPPA in 2009.
Never paid more than 12.5c for BEPPA and subsequently sold the remaining BBI securities from 17c down to 11.5c. These sales have netted cash which I am sitting on.
Total outlay on BBI/BEPPA investments is now at a level which equates to 3c per BEPPA.
Only holding BEPPA.
ah right, i hadnt looked at the volume yet. yeh there are indeed still more sellers than buyers. but i will keep an eye on it nevertheless. i need that 40% of my portfolio back lol
or do you reccommend that if i put my money into antyhing it wud probably be beppa over bbi? this is kinda what ive inferred from reading all these pages
We cant give advice on the forum but most people prefer BEPPA because it is owed past interest payments and ranks higher in the event of a wind up of the company.
BEPPA is tied to BBI and requires BBI to survive to see the gains most on here are aiming for.
Thanks,
Hi Fury,
no one can recommend, as against ASF policy.
If you read even some recent posts, they explain that BEPPA has less risk than BBI, and IMO a better likely return.
nevertheless, this is a risky investment, as reflected in the SP discount to NAV, things could turn very sour with just one announcement
fureien
Don't take this as gospel but if you trade with commsec as your broker you can not bid or sell in .001 increments past 10c. You have to move in .005 increments.
If you are with other brokers i guess you can.
I have tried with commsec but it won't register.
Just from my own experience.
If you adopt a strategy of selecting stocks on the basis that they are performing strongly now and hence I would assume this performance is reflected in the price (which would be toward the stocks highs) arent you making the mistake of buying high on the assumption that current performance is reflective of future high performance?
A stock trading near its highs is not necessarily a strong performer. It could be as flat as a lizard drinking, with little or no gain for months or even years on end....a non-performing stock.
Buying such a stock would certainly be a case of buying high...it's not something I'd do.
There are better ways to judge performance.
When stocks make the transition from prolonged downtrend to strong new uptrend, they offer the opportunity of buying strong performance while the price is still relatively low.
To my mind this exposes you to significant downside risk as you are buying at a high on the above noted performance assumption.
I agree with you.
Whereas by buying a stock which your research indicates has been oversold by the market then the downside is minimal and upside significant.
I agree that the upside potential is significant.
I disagree that the downside potential is minimal.
Renee Rivkin's newsletter recommended stocks that he considered were oversold and had limited downside and considerable upside potential. I can tell you that many of those stocks kept heading south in a big way.
I reckon both you and I could name many stocks that fell much lower after being bought by investors whose research indicated that they had been oversold by the market.
You have to also consider each stock on its merits eg BBI regulated income stream, quality assets, significant NTA etc as against GTP where investment was driven by tax considerations, high front end fees, no real title to assets etc.
Yes, I'm sure you'd consider all those criteria if you invest on fundamentals.
But if the company is drowning in debt then perhaps this over-rules those other fundamental considerations you've mentioned.
i mentioned this a couple weeks ago when i tried to buy beppa at 10.4c through commsec(the last traded price) but was forced to bid 10.5c
at those levels, when it hits you at buying and selling time it can affect your margin a bit. if sp is 10.3c you need to either bid 10.0c and not get the buy or up your bid to 10.5c and lose 0.2c margin. same at sale time.
.
your Half right,
yes you are limited to placing bids in incriments of 0.005 but that doesn't mean it can't go through at a lower price.
For example I placed a bid at 0.10 but when i checked after it had gone through i noticed my buy price was actually 0.097,
I just bought a bunch of these securities, hard to see anything but a total bargain at the current prices, with distribution guidance at 15 cents per security (tax deferred).
I have to disagree with Nicks, I don't see any short term financial mismanagement. Their reports and distribution guidance are consistent and the company line has barely changed. Their debt/equity ratio is 70:30 and that what the regulators allow for I'm sure.
...
I'm not claiming I understand their business model completely but it is not a traditional company with everything hingeing on profit & loss. Would be good to find a guide comparing traditional P&L business with an infrastructure fund. Sure, returns will never be spectacular but you will always get one I reckon.
Does anyone have a link or scan of the BBI AFR Street Talk article that they could PM me or post to this thread...?Hi guys,
FYI BBI in Street Talk section of FR today.
2009-2010 Forecast Earnings 224M.I am seeing couple of members here i.e. BB and Hardyakka suggesting DBCT would likely sell for 2.4bn - 2.8bn - could you kindly advise on the basis of this valuation? Looks bit optimistic to me.
Realistically, a 49% sale would be sufficient. IMHO, not ideal. But certainly sufficient.Would I be wrong in saying that - at this moment BBI is under considerable pressure to sell DBCT
See my post a couple up explaining this ^^.Tysonboss1;437010]your Half right,
yes you are limited to placing bids in incriments of 0.005 but that doesn't mean it can't go through at a lower price.
For example I placed a bid at 0.10 but when i checked after it had gone through i noticed my buy price was actually 0.097,
Can you please explain what the deal with SPARCS reseting / converting are? When and how many of the remaining 120M SPARCS can convert to BBI in the future? At whose option is this? Is it a case of SPARCS holders have to elect by September 2009 to convert, and then they (and only they) will be converted in May 2010?
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