Where's everyone getting the SELL Huntley advice from? As far as I know it's still advised as HOLD...
ASPECT HUNTLEY SUMMARY Business Impact: While our feeling is the company will survive by the skin of its teeth, there can be no guarantees BNB will avoid liquidation. The margin for error is small and despite the fall in the share price this investment remains very high-risk. Given we think the company will scrape through, the main problem we have with the stock is the impossibility of accurately valuing an entity which is going to shrink when we don’t know how much. The value probably lies somewhere between $5 and $10 per share but this is only a tentative guess. As a complex and intricate black box BNB has been impossible to analyse accurately in the credit crisis, and this isn’t about to change. We don’t know how to value a company whose earnings and assets just six months from now are so uncertain, so we are going to continue with no published valuation until there is more certainty. We can’t construct recommendation price ranges without a valuation to anchor the range. The omission of the dividend reflects the liquidity and capital pressures. There will be no further dividends until after sufficient progress on corporate debt reduction. A new Chairman and CEO have launched a radical Board overhaul and change of culture and strategy.
Forecast Impact: --
Recommendation Impact: Our instinct is to hold on for a rally which would accompany deleveraging and derisking, but any investors who can’t tolerate the risk of losing what remains of their investment should sell.
BNB Price at posting:
77.5¢ Sentiment: Hold Disclosure: Held
