BBI - Babcock & Brown Infrastructure

banska bystrica · 15 July 2009

Great post hardyakka.
I fully expect some sort of offer /restructure of BEPPA and I too am willing to give a little if it benefits BBI as a company.
I used the cash + 2 BBI shares as an example. I too would contemplate any offer in conjunction with the general market and BBI's overall health at the time of any such offer.
BOTH Beppa and BBI holders will have to give a little short term for both to benefit long term.

random · 15 July 2009

I have just had a wonderfull extended lunch/ dinner and come home to read that the do gooders are still trying to save the souls of the bbi, beppa heathens.

God bless your misguided hearts but i am happy with my current beliefs.
Still going on and on but saying nothing to back up their scepticism.

It so easy to be negative on these stocks - gee the price is so low you guys must be right, the charts say so.....loook.
The same old rhetoric but no facts that influence my thoughts.

Yes i know credit is tight, sp is low, the professionals have abondoned us.
Ah, I'm in my element.

Go beppa and bbi!
Cheers

hardyakka · 15 July 2009

banska bystrica said:
Great post hardyakka.
I fully expect some sort of offer /restructure of BEPPA and I too am willing to give a little if it benefits BBI as a company.
I used the cash + 2 BBI shares as an example. I too would contemplate any offer in conjunction with the general market and BBI's overall health at the time of any such offer.
BOTH Beppa and BBI holders will have to give a little short term for both to benefit long term.

I think the fact that BEPPA holders may be prepared to give up some value to restore the health of BBI is the key to the issue and it of course is governed by voting power. Without checking I would guess it would require a 75% of eligible voters.

On a separate issue I have been getting a bit jelous reading of your European trip. My only consolation is that I will be going for a long trip over there soon as well, Prague is on the agenda.

Cheers

hardyakka · 16 July 2009

random said:
I have just had a wonderfull extended lunch/ dinner and come home to read that the do gooders are still trying to save the souls of the bbi, beppa heathens.

God bless your misguided hearts but i am happy with my current beliefs.
Still going on and on but saying nothing to back up their scepticism.

It so easy to be negative on these stocks - gee the price is so low you guys must be right, the charts say so.....loook.
The same old rhetoric but no facts that influence my thoughts.

Yes i know credit is tight, sp is low, the professionals have abondoned us.
Ah, I'm in my element.

Go beppa and bbi!
Cheers

Random,

I am still laughing as I try and write this. I love the approach, despite all the warnings from the pros, is it No4 in the 3.30 at Rosehill or BEPPA. Now you have me worried about what is the best choice!!

Ande here I was complaining about a lack of analysis etc etc...btw what was the horses name?

Cheers

hardyakka · 16 July 2009

mikes said:
no doubt the celestials could co-opt friendly parties to front for them ( in purchasing or providing finance with interesting clauses or covenants not disclosed , and commercial in confidence arrangements.

Cant happen or it would constitute a breach of the Corporations Act -substantial shareholding notification requirements. basically if you hold a "relevant interest" this must be disclosed. A relevant interest can arise due to beneficial ownership, voting power, majority on a management board. The whole idea of the provisions is to ensure the ultimate owner is disclosed irrespective of any holding structure.

ASIC is actually tightening up on disclosre requirements and there is a Consultation Paper No 107 (CP 107) on scrip lending and substantial notifications open for public discussion on the ASIC website discussing proposed changes.

Cheers

random · 16 July 2009

Hardyakka,

Beppa mate for a win.

Thats my only tip for tonight but in saying that I'm still hoping to score myself.

I have to go get horizontal now.
Night

banska bystrica · 16 July 2009

hardyakka said:
On a separate issue I have been getting a bit jelous reading of your European trip. My only consolation is that I will be going for a long trip over there soon as well, Prague is on the agenda.

Cheers

I flew into Brisbane early Tuesday morning at around 12.30am. I was intending to stay a few more weeks but a family issue arose and I thought it best to get back. I had a great time although it was cut a bit short. My top 3 cities on this trip were:

Dubrovnik 1st (Simply stunning, could well be the nicest place I have ever visited)
Vienna 2nd (Class as usual with a capital C)
Budapest 3rd (the food puts it just in front of Prague)

Special mention to Ljubljana (very pretty and quaint).

Tysonboss1 · 16 July 2009

awg said:
I was a bit surprised to be called "not an investor" just because I hold Beppa in my portfolio.

Don't worry mate, I was shouted down in a few threads on various forums when I was sharing the fact that I was investing in MACQ COUNTRY WIDE ( MCW)

The smarter guys were quite forward in telling me what a fool I was for investing in MCW at levels below 20c, (as low as 10c actually), yesterday mcw closed at 51c, and are still paying a healthy div.

fuzzie · 16 July 2009

banska bystrica said:
I fully expect some sort of offer /restructure of BEPPA and I too am willing to give a little if it benefits BBI as a company.
I used the cash + 2 BBI shares as an example. I too would contemplate any offer in conjunction with the general market and BBI's overall health at the time of any such offer.
BOTH Beppa and BBI holders will have to give a little short term for both to benefit long term.

This would be tantamount to a restructure in receivership. Surely it would only make sense to BEPPA holders if they held as a proxy for BBI equity, not as a bond.

Are you also implying the banks would be willing to settle for less than face value repayment of their loans?

BEPPA and BBI are already giving much in the short term to benefit the long term.

Mitsimonsta · 16 July 2009

Viva_Las_Vegas said:
Without members posting their views and thinking outside the square this thread would be pointless. As far as fantasies I have plenty, some involve BBI, others BEPPA and a whole lot more involving a 15 hooker g@ngb@ng on a luxury yacht in the riviera.

Post of the entire thread. Absolutely sig-worthy. Thanks for the laugh VLV!

Largesse said:
Based on that graph, maybe you should advise everyone to go buy CBA shares?

I hold an approximately equivalent market value of CBA and BEPPA.

awg said:
I was a bit surprised to be called "not an investor" just because I hold Beppa in my portfolio.

Same. I balance out my portfolio with ASX20/50 companies, some small/mid caps, and a roughie or two. Yes, BEPPA is a roughie.

For a moment, lets consider BB's example of 35c + 2xBBI as a realistic restructure offer. The 35c alone is worth over $10k in cash to me. For someone with $14K equity in the market, that's alot of money. BEPPA was always designed to drive CG growth in my portfolio, the vast majority of my other holdings are aimed at dividend/DRP growth.

My financial goals are my own, and I take massive issue with people calling me a 'non-investor' because I did my research and found the upside in a particular stock was massive, yet the downsides that are there do not perturb me too much due to the smallish amount of money invested.

$2600 invested, if BEPPA is worth $0.00, then I have lost $2600.

If BEPPA is paid out at 35c + 2xBBI, I have made 4x my original investment on the cash component alone.

I would however, prefer to see more cash involved than 35c. 45c-50c would be a much better figure in my eyes.

banska bystrica said:
Why do people continually get my username wrong? It is not Banksa Bystrica. It is Banska Bystrica.

That's why I call you BB. Never want to offend.

Tysonboss1 said:
Don't worry mate, I was shouted down in a few threads on various forums when I was sharing the fact that I was investing in MACQ COUNTRY WIDE ( MCW)

I got into MDT on Monday, was up well over 10% when I last looked. Very similar profile to MCW, apart from the Local/US based assets.

I look at some of the REITS now and think that that's where my money should be going for a while.

banska bystrica · 16 July 2009

fuzzie said:
This would be tantamount to a restructure in receivership. Surely it would only make sense to BEPPA holders if they held as a proxy for BBI equity, not as a bond.

Are you also implying the banks would be willing to settle for less than face value repayment of their loans?

BEPPA and BBI are already giving much in the short term to benefit the long term.

Not implying anything about banks.

This example is just that. An example of what could be offered after most of corporate debt is paid back.

ricee007 · 16 July 2009

Largesse said:
Banksa,
What is getting my snot up is that I feel that some are understating the risk and over stating the potential reward on this stock.

I am confused. Has anyone really said that this stock has better than $1.25 potential?

I'm not here to mollycoddle people or try to protect them from themselves, but I have the right to come in here and voice my opinion when I think they are wrong.

+1

BBI is a rampers dream, so easy to pump up the blue sky potential while quitely overlooking the serious risk built into it's purchase.

Well, to be fair... BEPPA is a rampers dream. As above, but low liquidity... and easier to understate risk (Y)

To clear up what you keep trying to muck up, i'm not saying that BBI/BEPPA will 100% fail, or not give holders some return, i'm saying that people are misunderstanding the risks, and that the risk/reward is some what misaligned.

Really? Like who in particular? Any particular post that points to this?

I'd ALSO invest in CBA if I had enough spare cash.

Finally... anyone know why BEPPA has jumped (and BBI hasn't really)... do you think it's just someone/ones buying BEPPA and BBI, but BEPPA has lower liquidity... so it's more affected?

investorpaul · 16 July 2009

ricee007 said:
Finally... anyone know why BEPPA has jumped (and BBI hasn't really)... do you think it's just someone/ones buying BEPPA and BBI, but BEPPA has lower liquidity... so it's more affected?

I think BEPPA tends to jump more because there are less sellers and sometimes larger price gaps between sellers. Therefore a buyer who wishes to even accumulate a couple of K worth is forced to up their bid to have their order filled.

persistentone · 16 July 2009

ricee007 said:
I am confused. Has anyone really said that this stock has better than $1.25 potential?

+1

Well, to be fair... BEPPA is a rampers dream. As above, but low liquidity... and easier to understate risk (Y)

Really? Like who in particular? Any particular post that points to this?

I'd ALSO invest in CBA if I had enough spare cash.

Finally... anyone know why BEPPA has jumped (and BBI hasn't really)... do you think it's just someone/ones buying BEPPA and BBI, but BEPPA has lower liquidity... so it's more affected?

It's simple supply and demand. BEPPA is the more desirable security, and apparently has few sellers at current prices. So any demand kicks up price severely.

persistentone · 16 July 2009

I noticed the investing forum at HotCopper has lots of users that are marked as temporarily suspended. Can someone advise me what are the magic words we are supposed to never say there to avoid this issue? Looks like it might be over-administrated....

cpsharky · 16 July 2009

Very over moderated. The mod on HC who looks after the BBI thread seems to take great pleasure in suspending BBI advocates.
Heaps of posters got suspended early this year for trying to defend Melua's (Banska) unfair suspension. Hardyakka for example wrote "Hi" and got suspended permanently. For my money Hardyakka is one of the top three contributers to the BBI threads.

Now, if you have been suspended they are very good at detecting if you are registering again under a new name. It is possible, I am told on good authority to get around their system, but you need to know what you are doing.

Poor old NickleesonNumber2. RIP.

nathanblack · 16 July 2009

Are pump and dumps legal? provided im just an ordinary investor and there is no insider trading and provided i dont mislead anyone, i would assume its a legit way to make a crumb.

looking at the volumes, and how little action it takes to move the market, im interested to have a go. if i sold $40k worth of BEPPA i could probable push the price down a bit, then rebuy.

but probably works best when buying because i could eat up a few levels and push the price up, hopefully getting others into the market. then sell down slower at higher prices.

investorpaul · 16 July 2009

nathanblack said:
Are pump and dumps legal? provided im just an ordinary investor and there is no insider trading and provided i dont mislead anyone, i would assume its a legit way to make a crumb.

looking at the volumes, and how little action it takes to move the market, im interested to have a go. if i sold $40k worth of BEPPA i could probable push the price down a bit, then rebuy.

but probably works best when buying because i could eat up a few levels and push the price up, hopefully getting others into the market. then sell down slower at higher prices.

I would assume its illegal (but not sure, so i wont comment on that aspect)

I can however see what you mean. For example say the current price is 10.5c and their are sellers at 11c, 11.3c, 11.5c, 12c.

If you had the money you could theoretically buy up all the sellers at each of those levls pushing the price higher. You would then need to hope that others join the buy que and also wish to buy at 12c or higher so you can offload everything you bought for a profit.

As I type it does sound a bit suss, but I can see how with smaller/illiquid stocks this could happen.

just my

P.S I dont agree with/recomment this practice

Viva_Las_Vegas · 16 July 2009

Mitsimonsta

Quote:
Originally Posted by Viva_Las_Vegas View Post
Without members posting their views and thinking outside the square this thread would be pointless. As far as fantasies I have plenty, some involve BBI, others BEPPA and a whole lot more involving a 15 hooker g@ngb@ng on a luxury yacht in the riviera.

Post of the entire thread. Absolutely sig-worthy. Thanks for the laugh VLV!

You are welcome for the laugh!!! Thing is I am actually serious. You see when I do get my $1.20 per BEPPA share I will put the 15 h00ker g@ngB@ng fantasy into play and guess what? With the 15 hookers I can do all sorts of RESTRUCTURING! LOL

I'm sure my wife will have something to say about it though ROFL!!!

Nice to see the buyers coming back to BBI.

Mitsi I must thank you once again for telling me to hang in there with my HFA!!! THANK YOU!!!!

Oh and check out this link, I put it on HC as well. A mate emailed it to me, relating to BBI

http://www.lincolnindicators.com.au/sg_current/index.html

Viva_Las_Vegas · 16 July 2009

a qoute from ninemsn finance section today

"A surprise surge in China's economic growth will boost the Australian economy as demand for local commodities rises. "
http://money.ninemsn.com.au/article.aspx?id=838219

Another positive for DBCT in my opinion.

An increase demand for out commodities will result in more shipping traffic, this traffic could head to DBCT - just in time to use the new expansion!

An astute buyer would see that buying DBCT now will more than pay for itself as a recovery grows roots and begins to gain momentum - eventually.

Anyway im off to google to search for my luxury yacht LOL

BBI - Babcock & Brown Infrastructure

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