Just had a quick chat with one of the analysts I know. He knows I hold a stack of BEPPAs and he said I should consider selling them at 14c. I said I wasn't interested.
His comment was basically BEPPA will be worthless if BBI do go into administration (unlikely he agreed) because of the length of time it take to announce closure. He thought at least a decade. The expenses of a long liquidation would eat/erode any value still left.
Therefore, if BEPPAs are essentially worthless in administration, the only real premium is the circa 5c owed in interest. Therefore, 11c should be tops for BEPPA right now and if BBI weaken further because of SPARCS, BEPPA should go down with them.
Any thoughts jonkey, dargie, kiril or others? This guy is one smart cookie and I respect his views.
He was basically saying don't expect protection by BEPPA in administration. Therefore, the premium to BBI should only ever be the unpaid interest.
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