market cap and nav, page-85

Cheers, thaks for your views.

"I think you rest your scenario on BBI hitting 12-15c (so, 2- 2.5X current price).. and thus 2 BBI being worth 24-30c. Is this accurate?"

my scenario regarding converting at a ratio that doesnt result in dilution ie 1.78x, is not determined by share price, it only involves NAV.

The share price is only relevant as far as today BBI=6c, Beppa=13c. 1.78xBBI =10.7c. would you convert at todays prices? NO.

But its forseeable that with all the issues unfolding near term that the share prices will align in a manor that makes sense to convert. It could even be that BBI falls further, ie BBI=5c, but if BEPPA also fell to say 8c, a BEPPA holder could get 9c of BBI for an 8c BEPPA.

Who knows what the respective share prices will do, but it doesnt take much for BBI to rise slightly more than BEPPA (or fall slightly less).

And onething is certain. if beppa converted tomorow @2xBBI or less, BBI would instantly rise. the fear of dilution is holding it back.

nobody wants to pay 20c per BBI today, knowing that NAV is 56c but could easily be diluted to 15c tomorow if they chose to convert at a generous ratio.

remove the risk of dilution, have 5bil shares on issue all with NAV of 56c(no further dilution possible) and watch the share price run.

If the market says your BEPPA is worth 13c, then that is what its worth. Face value isnt relevant. Accepting anything above 13c is a profit.

If i announced i would by ALL Beppa tomorrow for 20c apiece, wouldnt you be tempted to buy then now for 13c and then sell them to me for 20c?


cheers

PS. I'd love to hold to 2012 and get $1 too, but i'm willing to compromise if i see value in BBI at time of conversion.