"Not the least of B&B's problems is what to do with BBI. The fund has great assets but is massively overgeared. It's look through debt is about $11.7 billion: $7 billion on its balance sheet and $4.7 billion off balance sheet, but it now has a market capitalisation of only $112 million, with the price of its securities down from a high of $1.95 last year to only 4.7c...."
Now forgive me as I do not know this Mr Frith, but
1. What off balance sheet debt is he talking about? Is he referring to non-recourse debt at the asset level? I have no idea what he is on about?
2. Look at the first line in his statement: "Not the least of B&B's problems is what to do with BBI".
Forgive me again Mr Frith, but when did BNB have any say in how BBI is run? They might own 10% of the stock, but they have no Board representation, no inter company loans with BBI and therefore no recourse to any of BBI's assets.
You have to wonder about these journalists.
BBI Price at posting:
3.4¢ Sentiment: LT Buy Disclosure: Held
