a few things.
1. everyone do yourself a favour and listen to the pod cast of the presentation by Phil Green, its on the BNB website and then make your own mind up.
2. in relation to the directors and managers having margin loans on the stock, again listen to the pod cast and Phil Green says that out of $1b worth of stock held by management there is at most $30m in margin loans by directors and key staff.
3. they get most of the income from management fees and deals, ie they find the assets and then sell them into their listed trusts or wholesale managed funds.
3. no more and 5% in income came from any one project, ie income stream is very diversified.
4. large amounts of undrawn credit facilities.
5. its on a forward PE of around 7x, if thatsnot cheap i dont know what is.
6. defered share purchases for staff to be brought on market rather than issing more script, ie it amounts to an on market buy back.
if all of this info do you really think the hedge funds want to try and keep short selling it?
the competitors for BNB and MQG keep falling over, over the next few years you are going to see BNB and MQG absouletly dominate the infrastructure market. When that starts to happen BNB wont trade on a PE of 7x but probably 20x. When that happens it will be a $40 stock, just like what happened to MQG in 2002-2003.
BNB
babcock & brown limited
