Those were issued by analysts 6-12months ago before **** hit the financial fans and huge blob landed on BNB.
A few days ago either Citi or UBS put a new price target of $1.34 on BNB.
fwiw, i think hes trolling. So no real losses there...
EDIT: Found link. UBS New target $1.24 lol
http://business.smh.com.au/business/green-to-exit-babcock--brown-20080820-3yhs.html
Whats that old saying "If you try to pick bottoms you get smelly fingers".
...
Ok here is a tip.... Today Babcock is gone and we are left with "Brown"
What does that remind you of?.... Say no more !!!
Hi Mate, I am one of those suckers who bought BNB on EXPERTS advice from SMART INVESTMENT magazine. They rate the BNB as high return and LOW risk which it was around $16.
I got the profit "affirmed" from ex-CEO (Green), and all the ticks from other "EXPERTS" brokers before I bought....well.... still screw up, big time.
We've all made silly mistakes. Heck, i've made silly mistakes following my own advice:.
I think the thing is to check the investor magazine recommendations against the real results. Eg, watch the stocks for a few months to see if these 'gurus' were indeed right. And, anyway, i think it's a big smelly conspiracy... Magazine authors buy in and of course give it a good recommendation.
Hi Mate, I am one of those suckers who bought BNB on EXPERTS advice from SMART INVESTMENT magazine. They rate the BNB as high return and LOW risk which it was around $16.
I got the profit "affirmed" from ex-CEO (Green), and all the ticks from other "EXPERTS" brokers before I bought....well.... still screw up, big time.
You guys seem to be putting me off so you can keep all the shares for yourself. It's not going to work. I am not that stupid.
I will be buying big when it comes out of the trading halt. I will send you a postcard from my yacht in the Bahama's next year!!
I know this is crazy, but i wonder if it is worth taking 1,000 long on BNB right now? Afterall, it could almost be classed as a speculative stock... If it goes bust, you'll only lose around $2,500 (i don't encourage losing money, but you get my drift).
*Disclaimer: i do not intend taking the above-mentioned position, my post is purely meant as conjucture
I actually feel sorry for all the mum and dad investors who got sucked into this stock.
Why spend $2500 now to get 1000 shares when it may get you 2000 tomorrow?
And another stock bites the dust, only question left is what stock is next... when the bears get a hold, run. Hopefully what happened to BNB is an example to everyone here (whether they held it or not) as to the importance of having to cut your losses early and avoid this kind of fiasco.
To think this is the 2nd largest investment bank in Australia and this can happen in 2008, disgraceful. :bad:
A number of brokers have $36 targets on BNB, I personally will be waiting for BNB to break old highs then sell. Still a lot of room to move.
This stock has recovered very well from correction.
No matter where you look, which broker you reference or which report you read - BNB is an absolute bargain.
Even last night when I received my Comsec report, they are suggesting that BNB is an extremely rare chance not to be missed. The target 12 month target now stands at $35 with an expected 12 month SP earnings forecast exceeding 30%
In my opinion, and fall now is an opportunity to grab some more stock. If necessary, I'll be selling other non performing stocks to follow BNB down. It's a pity that the dividend return is not so good
BNB is tied to the bad taste of sub prime and is put into the same box as others in the financial tagged stocks and suffers accordingly. Funny thing is, BNB is relatively un-exposed to sub prime lending and probably shouldn't be punished as badly as it has been.
The BEI satellite is being seen as a peripheral failure and got punished. Coinmach seemed like a pretty good investment to me - but got punished again today, I guess share holders don't like seeing money being spent which is pretty odd when you hold shares in a company where this is their core business.
The market responded a little better with the Melbourne Children's Hospital deal.
I didn't check, but was told by a trader friend of mine that Macquarrie is being treated similarly.
IMO BNB is a buy, buy, buy - there is no need to take a loss on this baby.
Here you go:
Opportunity to profit from fear
Australian investment banks have underperformed the market since the onset of the subprime turmoil. Sentiment has been dragged down by record losses in US and European banks. This is an extraordinary buying opportunity for some stocks in this sector.
Investment banks around the world have been hit by a crisis of confidence. US banks have so far written off over US$50B worth of mortgage-related losses in 3Q, and the market is expecting further write-downs over the coming quarters, up to a possible tune of US$200B if not more. The
trouble is no one, including the banks themselves, can quantify the full extent of their losses with any certainty, as the market for these investments has all but dried up.
With so much uncertainty hanging over the market, investors appear to have lumped all investment banks into the same boat, and we believe this is an opportunity to profit from fear. Most Australian investment banks, particularly Allco Finance (AFG) and Macquarie Group (MQG), have been
oversold even though they have little or no direct exposure investments that are primarily responsible for the massive write-downs in Europe and the US.
If anything, most in the sector have issued relatively positive outlooks, although these were laced with caution. The reason why AFG, MQG and Babcock & Brown (BNB) are relatively insulated from the sub-prime mess is because they mostly deal with physical assets. For instance, a large part of
BNB and MQG’s business is based on buying and “repackaging” infrastructure assets, while AFG is predominantly into leasing aircrafts and ships.
This is not to say their businesses are without controversies. BNB and MQG have received criticisms over underperforming satellite funds. This has prompted BNB to propose buying over Babcock & Brown Environmental Investments (BEI). The offer is valued at $0.508 per BEI share, but this is
unlikely to please all, since some paid $1.75 or more at its IPO.
The perception of the potential lack of acquisition opportunities has also weighed on the investment banks. However, we would not be surprised to see a pick up in acquisition activity, as there are still plenty of good infrastructure assets globally that are there for the taking.
Since all three investment banks rely heavily on overseas credit markets to fund activities, investors have been worried that the credit turmoil would impact their bottom lines. Although the cost of debt has risen worldwide, the banks do not seem to have much trouble raising funds. Last week, MQG
successfully closed a loan syndication healthily oversubscribed.
Meanwhile, MQG faces other challenges. A large portion of its revenues comes from share marketrelated activities, such as brokerage and M&A advisory and underwriting. In revealing its record $1B 1H08 profit, MQG said that its profit was boosted by unsustainably strong equity markets.
While we have factored this into our model, we note that MQG is well placed to profit from the booming Asian economies and there is likely to be continued strong demand for its M&A advisory services. BHP Billiton’s bid for Rio Tinto could spark more consolidation in the industry, while the Utilities sector is another that could experience a pick up in merger activity in the months ahead.
Never rely too much on what brokers say, too many times the so called 'experts' get it wrong or say this and that just to get their name out there. Sometimes they will own the stock giving them even more reason to back a particular share.I think it is just the market. There is nothing wrong with this stock, in fact most brokers have targets of between $15 and $20.
I am going to speak to my bank to get a loan to buy more of these.
No, I did not have shorts. If I did, I assure you that posting stuff on this forum would hardly change anything, not like it is full of high flying wheelers and dealers.Do you seriously think that what anyone on this forum does changes the price of a share?I don't want to sound like some of the other know-it-alls on here saying 'I told you so' (wonder if they had shorts?)
Cheers
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?