bbw selldown way overdone

The news today out of BBW is very positive not just because it shows that the company see an investment in themselves as the most efficient use of free cash but it sends a clear message that BBW are not tied to the coat tails of BNB quite the opposite really.

The sell off in the last week or so has been dramatically overdone and has been exacerbated by E trade cutting LVR on BBW to zero. In many respects this is throwing the baby out with the bathwater and is a slap in the face to BBW shareholders.

BBW has solid foundation of appreciating assets; they are in the process of realising some of these gains whilst at the same time continuing to build their pipeline. They have cash on the balance sheet and are realising <$3 million per MW.

The buyback will commence in 14 days and I can assure you that at prices under $1 the first of the 86 million shares that are to be bought will go very quickly.

BBW directors presented to various investors at a road show today and made it abundantly clear to all of them that the connections to BNB are at best minimal and there are no negative covenants which can affect the structure of or obligations of BBW. This seems to be the primary concern with cautious investors.

IMO over the next few days we will see BBW move and move quickly and it will be on the back of the recent road show and the clear understanding that BBW is in a robust financial position with great appreciating assets. When the buyback commences I expect to see $1.20 very quickly if it is not already there.

Today was a difficult day to release this news as the market was focusing elsewhere but think about it the company are going to buy back shares and im sure they would like to do it at the current all time lows. For this reason it makes sense to position yourself prior to the commencement of the buyback.

For the record I bought a significant parcel of shares at less than 90c today.