BBIG will be issued 10% shares at 18cents. That is what mgmt thinks shares value after debt restructure conservatively. I am sure lots of investors like GPG will be willing to invest around 18 cent level. BBIG debt reduction itself adds 50cents to equity. As per QA session in AGM today, they think business will improve 2011 onwards after legacy contracts run out.
Remember this is utility share , defensive in nature & they trade at premium. It's only question of time once they reduce debt to more reasonable level, either by equity raising or asset sale, it's going to trade close to NA.
I wouldn't be surprised if it trades 50-60 range in next year. I am not too worried about what it trades when trading opens. I am not selling anyway under 50 cents.
BBP Price at posting:
7.6¢ Sentiment: LT Buy Disclosure: Held
