bbp to wrap up talks next week, page-5

I sold out of BBP following the announcement of BBI's recapitalisation plans as I think BBP's upcoming major announcement, as flagged by the CFO in the article I cited at the time, could be something similar.

Being a non-resident and a long-term investor looking to build and hold onto a retirement portfolio, I am unable to participate in SPPs, rights offers and DRPs, so I stand to be a major loser in any recapitalisation or reconstruction which promises to massively dilute existing shareholders using BBI as an example which I sold out of at the same time as I did with BBP.

Apart from the concern about a possible BBI-style recapitalisation, my opinion of BBP has not changed all that much but after researching other companies I did find a few with greater upside than BBP without many of the risks so I decided to cut my losses and try my luck elsewhere.

I am still invested in other former and current BNB satellites and I will remain invested in them for the long-term, but the difference with them is that they have been far more proactive than the likes of BBP in reducing their debt levels, identifying core assets and selling off non-core assets and changing their name or at least announcing an upcoming change of name whilst either already having internalised their management or being on the brink of doing so and actually announcing it to the market. BBP (and BBI for that matter) are way behind in most if not all of these areas, and along with the issue of recapitalisation for BBI and a likely one to follow at BBP, should their debt be refinanced, I thought it was time to look elsewhere.

Of course I might have been wrong to sell out of BBP and only time will tell, but given that my portfolio value is worth four times what it would have been had I remained fully invested in just BBP and BBI back in March then I think my decisions have been fully vindicated and my new BBP-less portfolio still has plenty of upside remaining.

Had I have had the money I would have remained exposed to BBP but given my personal financial situation I couldn't hold and deal with the ongoing uncertainty any longer and I decided to make a fresh start elsewhere, hopeful that my next investment will prove to be more successful than my investment in BBP was over its 18 month lifespan.