nothing has changed people!, page-7

From ABN Amro:
"* Investment view - While there is probably significant value in investing in the long term recapitalisation story for BBI, it still remains all about asset sales and there are no guarantees. We estimate that they need to raise about $600m to $700m from asset sales to pay down corporate debt. The unknown is how much future cashflow will it have to sell to raise this level of capital."


Back from a quick nine holes skins game. Spoke to my broker a couple of times. I've shorted 500K BBI at an average of 7.3c. Was tempted to short again at 11.5c when he rang but refrained..... I was standing over a 8ft left breaking putt to win a $500 skin.lol He also sold a tick under 600K BEPPA for me and he says he has averaged circa 17.8c.

It's still about DBCT and this flurry today is daytraders jumping over each other. Once the dust settles, the reality will set in that long term things are great. They are going to survive....BUT, short term, we are still waiting another two months for DBCT/PD Ports sale news. That means there will be dilution in November from SPARCS and there will be dilution from any capital raising. A cap raising looks a certainty from the announcement and they will probably wait until DBCT sells. BBI is essentially a call option over DBCT. I'm sticking with my short position (and currently losing about $14,000 on the short) but pocketed very nice gains from the BEPPA sales.

Yes, I missed the putt and went on to lose $1,200 for the nine holes. Expensive two hours.