BNB babcock & brown limited

any positivity, page-64

  1. 11,680 Posts.
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    I don't believe BNB are anywhere near defaulting on any loans and they wont go broke. They have many assets they could sell if they needed the cash. But I dont think they will have to. Their credit rating remains good.

    Furthermore BBP has 5 new power stations starting up within 6 mths which will increase BBP's power output by over 50%. At that time the costs associated with the construction will end and from then on BBP will be a nice cash cow for BNB like the other investment vehicles. They would be crazy to sell assets when they need so little and very shortly will earn so much.

    I like the BNB's assets. ie gas fired power stations, wind turbines, gas retail, rail transport, etc. They are all selected to appreciate, take maximum advantage of the fuel crisis and provide secure long term incomes. That a lot different to investing in property.

    I am holding and intend buying up BBP, BBI, BBW. I dont reckon they will fall. A bounce is on the cards. In fact - looking at Friday's candlesticks BBI, BBW and BBP have already bounced. But if they fall I'll be buying more.

    If you have held this long then don't dump. No one is saying they will go broke. Not even the media. Most analysts have a $6.50-$7.00 target.

    The other reason not to dump. BNB are talking to the banks. It is likely they will come back with the all OK which will help the sp a lot.
 
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