ubs research on bbp, page-31

"melua,
Just answer me this. Where is the value in the current environment of buying assets at book that have a return on invested capital of around 4-5% with very little scope to increase margins given regulations? Remember the cost of capital for a BBB credit would be at least 12% at the moment. Numbers don't add up, no buyer will pay anywhere near book for BBP's assets in aggregate."

You need to understand the following before we even get into other fundamentals.

If you are going to include capex you need to exclude the D&A of EBITDA. I am forecasting this to be about $160m in FY09.

The bottom line is that the cashflow is fine.