BBI have not announced anything to the market regarding downgrade of earnings to June 30. Therefore, we have to assume their 2009 accounts are in line with budgets and forecasts. Remember BBI are not paying any distributions. This saves about $250M in cash per year. I would say the assets have continued to perform to expectations and also remember we have a ripper of an asset in NGPL. Talk of BBI going into administration on other forums is just plain nonsense. That is only a very remote possibility, one not even worth contemplating. The assets are first class although some are struggling a bit in this global recession. Others are doing very well. Overall, I think BBI is in pretty good shape despite what the market is saying.
I also note Intelligent Investor had downgraded BEPPA to a hold from speculative buy. To me, that is a big positive for not only BEPPA, but BBI. That mob have no idea so I would use their recommendation as a contrary indicator.
Whilst I have been negative on the BBI price since Corus, and it has slumped from 19c to 6c, and I still see significant risks to BBI equity holders regarding dilution, at 6c even BBI are probably getting to the oversold stage.
BBI Price at posting:
6.3¢ Sentiment: None Disclosure: Held
