BBI babcock & brown infrastructure group

today's meeting, page-53

  1. 10,127 Posts.
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    primaus72, here is my logic anyway.....

    Say I buy $12,000 in BBI today at 8c, or BEPPA at 12c....

    I get 100000 BBI or 100,000 BEPPA.

    If say in 2 years time we get back to MAY 2008 prices for both, then BBI is at $1.20 and BEPPA is at 80c.

    Lets say dividends are suspended for 1 year on BBI... so 12c dividend for BBI and 24c dividend on BEPPA.

    Doing the maths....

    BBI investment

    150,000 x $1.20 = $180,000 + $12,000 Dividend = $192,000

    BEPPA investment

    100,000 x $0.80 = $80,000 + $24,000 Dividend = $104,000

    BBI is better return, BEPPA is lower risk.
 
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