surplus operating cash flow 299 million

Market cap of $800m...they deliver NPAT (after writedowns of $151m).... and surplus operating cashflow of $299.6 m.....and thats for 6 months. Yet virtually not one mention on any newswires or press today, of the bottom line result today. (Wished I owned a broken business model like BNB's.)

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I know you will say PE's mean nothing because of possible funding overhang or assets devaluations.

Well they have assets of $13.3b and loans of $10.8.....nett assets of $2.63b. Can't look at these figures on a stand alone basis because of recurring incomes from funds under management....$200m today mostly kicks to the bottom line as profit......

Sure we are in the middle of a credit crunch, so gearing must be reduced. Right now BNB have acceptable gearing (to the banks...and this super cash flow....all loans in place until 2011 - mostly all hedged)

But there must be something wrong elsehere......otherwise shares would not be sold off, or the press would not be critical.

So as it happens, half a hour after resutls are resulted.......an incredible announcement like this......BUT surprise surprise no mention of it in the news.
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FCC Buys Babcock Wind Park Assets in Spain for $1.2 Billion

By Charles Penty and Angela Macdonald-Smith

Aug. 21 (Bloomberg) -- Fomento de Construcciones y Contratas SA, Spain's third-biggest builder, agreed to pay 780 million euros ($1.2 billion) in cash and debt for Babcock & Brown Wind Partners' wind energy assets in the country.

FCC will pay 190 million euros and assume 590 million euros in debt to acquire Babcock Wind assets including 14 wind parks with capacity of 421 megawatts, the Barcelona-based company said in a filing to regulators.

The purchase marks the first investment in energy by FCC as it embarks on a 4 billion-euro drive announced in May to diversify its business as Spain's building market slumps. The sale of the assets will yield a profit of about A$266 million ($232 million) for Babcock Wind, the Sydney-based company said in a statement to Australian regulators.

Babcock Wind said in February it may sell assets in Europe to benefit from increased valuations from projects that is not reflected in its own market value.

The price for the Spanish assets ``produces a large gain on sale for BBW and, importantly, is materially higher on a per megawatt basis than the current market implied value of BBW's total portfolio,'' Miles George, chief executive officer of Babcock Wind, said in the statement.

ASIDE: BBW reduced their enterprise value today by half...as a result of the sale of 17% of their operational portfolio. Yet their shares today were off 14%

Wind power station sale today infers a shareprice about 20% of value based on the Europe sale.
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NOTE: THE LAST COMMENT.....here it is again:

"is materially higher on a per megawatt basis than the current market implied value of BBW's total portfolio,''

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Babcock & Brown has more than 20 years experience in the wind energy sector and is one of the top five wind energy developers and operators globally. Babcock & Brown currently has in excess of 3000 MW of wind energy under development around the world primarily in the US and Europe. Babcock & Brown Wind Partners (ASX: BBW) a specialized investment fund focused on the wind energy generation sector currently has a portfolio of interests in 35 wind farms on three continents that has a total installed capacity of approximately 1700MW.
Babcock & Brown was founded in San Francisco

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If you have read all this....and you still then the value of their port, energy, rail, road assets etc are going to dimish - then go and buy something else, but I think an opportunity will be missed at about 10.15am tomorrow.

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One last quick one.....satelities were set up, such that BNB was not one giant conglomerate. Maybe General Electric is a company where diverse business models are managed within the one maybe sometimes cumbersome structure.....different to BNB.

Satelities were spun off( not sold for a huge one off stake).....such that specilised management teams could optimize returns...not only for the parent, but for all stakeholders.

Anywat like the model or not....I think this is way, way oversold.