BNB - Babcock & Brown

[adobee]

i cant believe i went to bed having seen the announcement on the news an agreement had been reached and Obama saying he had pushed the critical parts and then bang i am worken up to "no deal"..

considering how much bnb got smashed this morning and the fact that there are still buyers now down 9-15% i am optimistic..

i am holding.. why i am not sure.. but hoping something good will come out of it.. at this stage to me it doesnt look like its all over yet.. compared to the american banks which have just been knocked out in a night bnb seems to have some resilliance..

 

[abc]

BNB share price went down again today. where is the price going to move tomorrow?
I bought some more Today . I am trapped deeply in BNB now.

 

[posh]

Our darling has made it into the top 5 most popular buys YESTERDAY (2nd Oct) according to Commsec Most Popular Stocks, with a turnover volume of 11,993,936.

 

[abc]

Our darling has made it into the top 5 most popular buys YESTERDAY (2nd Oct) according to Commsec Most Popular Stocks, with a turnover volume of 11,993,936.

Does that mean the price will go up? what is the probability of the firm going into liquidation?

 

[oldblue]

Does that mean the price will go up? what is the probability of the firm going into liquidation?

All it means is that there were a lot of holders selling and a lot of buyers ( or a few big ones? ) prepared to buy.
Note that the SP is still in a downtrend. Anything else would be a guess on my part.

 

[Sarahbne]

Our darling has made it into the top 5 most popular buys YESTERDAY (2nd Oct) according to Commsec Most Popular Stocks, with a turnover volume of 11,993,936.

It may have been in the most popular buys, however there were still more sellers than buyers. When most investors are holding off buying until there is a definitive verdict on the bailout package, it doens't take a large volume of buys to make it in commsec's top 5

 

[sammy84]

Hi all

Could anyone explain to me the price movement of BNB in the last week? It seems as though the stock has been pretty resilient by staying around the $1 mark, when considering some of the large drops the market has taken in general. Could this mean that more investors are becoming optimistic about the firms prospect of survival?

 

[jetblack]

Yes, BNB was resilent to the market today. I guess in times like these you could assume a number of things.

Could it be accumulation because it is under valued or possiblly a take over target.??
Or
Could it be a carefully orchestrated move to relieve large holdings from the company without spooking the share price?

In the end you make the decision if you perceive it to be good value in light of the current economic conditions or an old debt ridden dog that has had its day in the sun.

I have no idea, I only wrote this because I felt like it.

I have no postion in this stock

 

[sammy84]

Thanks Jet Black, good to get another opinion on what is happening here. The price rebounded strongly on take over whispers only a few weeks ago, and considering the current movements in the price I am starting to believe that obviously some still believe this might happen. Or maybe this is what I am hoping

 

[cridstar]

Definitely just a hope, no rebound in sight on this junk stock unfortunately. Got out at $2.50.

 

[sammy84]

One of the largest gainers on the share market in the last 2 days and not a word. Doesn't look like ending either, there was alot if support even as the asx was losing ground in the later stages of the day.

 

[Logique]

BNB is one of the most intriguing stocks on the market. It trades big volumes and has been bouncing back up off recent lows. The share price is so far off it's recent highs it's not funny. That rumour of a 2.50 buyout is obviously still in peoples minds. Watching BNB very closely.

 

[hardcoremike]

I've come across Babcock and Browns hybrid notes. The code is : BNBG and is currently trading for $20~. From what I gather the interest rate is roughly around $8 per annum with a face value of $100 and there is a reset day of nov 15 2010.


not sure if i'm understanding the concept of hybrids correctly, at the moment it will pay $8 per annum and until 2010 comes in which it will exchange $100 worth of BNB shares for each note .

is that correct?

Cheers

 

[Mr_T]

I'm considering starting a web page devoted to the Great Phil Green. Basically, it will consist of taking quotes of his when he was CEO of BNB and comparing them with reality. Letting viewers judge the integrity and competence of this man.

Any thoughts? Would it also be useful to cite some studies showing personality differences between siblings? I raise this point in light of the fact that Phil's brother, Max Green was a embezzler (I mention his story in previous points of mine).

 

[lcl999]

I've come across Babcock and Browns hybrid notes. The code is : BNBG and is currently trading for $20~. From what I gather the interest rate is roughly around $8 per annum with a face value of $100 and there is a reset day of nov 15 2010.


not sure if i'm understanding the concept of hybrids correctly, at the moment it will pay $8 per annum and until 2010 comes in which it will exchange $100 worth of BNB shares for each note .

is that correct?

Cheers

Yep, $20 buys you $116 over the next two years. Provided BNB doesn't find some way to reneg. Buy, and you may end up like the holders of AHUGA.
Take care.

 

[forfunsake]

With the BNBG, I understand that if there is a takeover bid that these must be paid out. That would mean that you wont have to wait until Nov 2010 to benefit the $100 return.

 

[lcl999]

Re BNBG I haven't read the prospectus (not sure where to find it) but "reset date" usually means the date at which the interest rate is reset. Usually according to some formula such as inter-bank plus x percent. It may, or may not, be convertible at the holders option on that date. Perhaps just the issuers option.

 

[YELNATS]

Re BNBG I haven't read the prospectus (not sure where to find it) but "reset date" usually means the date at which the interest rate is reset. Usually according to some formula such as inter-bank plus x percent. It may, or may not, be convertible at the holders option on that date. Perhaps just the issuers option.

Try this link:

http://www.babcockbrown.com/bnb-investor-information/bbsn-subordinated-notes.aspx

According to the prospectus,

Quote

Reset Date
The first Reset Date is 15 November 2010.
Reset of terms On each Reset Date:
Babcock & Brown may change certain terms of BBSN (BNBG) including:
• the next Reset Date, provided that each Reset Date will be no less than 12 months after the immediately preceding Reset Date and will also be an Interest Payment Date;
• the Exchange Discount;
• the Market Rate (including from a floating rate to a fixed rate);
• the Margin; and
• the Interest Payment Dates

Unquote

Note as per BNB's last announcement
Quote
The interest rate for subsequent periods until the first reset date (15
November 2010) will be based on the Australian six month bank bill swap
rate plus a margin of 2.20% per annum.
Unquote

 

[YELNATS]

Further, as per BNB's 27/09/06 ASX release:

Quote

Under the BBSN terms of issue, investors have the right to request an
exchange of BBSN into ordinary shares in Babcock & Brown in a number of
circumstances, including at reset dates and at maturity. On receipt of a request to exchange, Babcock & Brown may choose whether to exchange, repay or resell the relevant BBSN.
Babcock & Brown’s decision on whether to exchange, repay or resell the
relevant BBSN will depend on a range of factors including Babcock & Brown’s
equity and debt position at the time, the opportunities for expansion of our
business and our assessment of the optimal financing sources available to
Babcock & Brown at that time. In the event of exchange, Babcock & Brown
ordinary shares will be issued to investors at a discount of 2.5% to the average market price on the terms set out in this Prospectus.

Unquote

 

[abc]

will the company pay the interest to BNBG holders next month? I just bought some BNBG.

any ideas?
thanks