The management of BBP has been acting for some time now as if it already has the blessing of the banks. When you think about it, it is the only thing that makes sense as they seem to have rejected Arcapita's takeover offer out of hand and also made the decision some time ago to only sell their development portfolio whilst holding onto their operating power stations without making any effort to put them on the market. There seems to have been a complete lack of urgency that surely would not have been the case if the ship was known to be sinking without the support of the banks and key stakeholders and key shareholders in the company.
The bottom line is that management is acting very confidently about the future prospects of the business, far more confidently than they should be under the circumstances, unless of course they know something that we don't, and that could be an undertaking from the banks to keep the company a going concern until market conditions improve and given the significant increase in earnings expected for BBP beyond FY2010, beyond such time as the company is either taken over or is in a position to right itself and continue operating in its own right, something that seems unthinkable to me and no doubt many others, but something that management seem to be considering as a real possibility.
Only time will tell, but irrespective of a takeover offer or a go-it-alone policy or a bit of both eg. BBP retaining its assets in WA and selling off everything else, I'd rather wait for the announcement or announcements next week before writing off my investment completely in this company after which time I will either regret not selling out when I had the chance or I will be content to continue holding stock in the company until the share price reaches a value I would be happy selling at, a price well in excess of the current 10c.
BBP Price at posting:
10.0¢ Sentiment: ST Buy Disclosure: Held
