good company or spec play

I do not believe this is now a good company only a spec play. Unless they can get their act together.
It may be good for short trades but be careful in my books.

Charging up B&B Power

"The fee gravy train that was chugging along at Babcock & Brown can be found on display in the latest accounts for Babcock & Brown Power (BBP) with total fees paid to related parties of $105.8 million in 2008.

To put those fees in perspective, they amount to a little more than the $102 million current market capitalisation of BBP.

The Babcock fee take, which has been ably dissected by Credit Suisse utilities analyst Sandra McCullagh, starts with a base fee of $14.4 million and a manager expense amount of $6.7 million. The base fee has been waived for fiscal 2009.

The remaining $83.4 million in fees were for advice provided by Babcock & Brown in relation to a number of transactions that occurred during the financial year.

McCullagh's analysis of these fees is useful because it makes clear that many of the fees were for transactions that have subsequently had to be unwound to reduce debt.

BBP paid a $5.2 million fee to buyout the minorities in the Uranquity power station. The cost of that 30 per cent stake in Uranquinty was $25 million, which makes the fee equal to 20 per cent of the transaction's value.

Babcock also picked up a $17.9 million fee for the development, facilitation and origination of Uranquinty. It was sold for $700 million to Origin in July bringing net proceeds to BBP of $159 million.

BBP paid a $29.4 million fee for the purchase of an additional 33 per cent stake in AlintaAGL. The AlintaAGL holding was purchased for $534 million but was later written down by $410 million".

Good luck in trading it I had 2 goes for 1 win and 1 loss after the sp dropped substantially.