analyst recommendations...

Almost all brokers revised DOWN their target SP following BBP's financials released on Friday which may explain some of the selling today. Target SP ranges from $0.10 to $0.98 with a median in the high 20's.

Key areas of concern that analysts thought should be addressed are:
- avoid debt default including refinancing or repaying the short term BNB facilities. BNB facility is unlikely to be extended however given recent comments;
- further equity injection may be required;
- appointment of outside personnel to the board is required to help restore investor confidence;
- criticisms of BNB's management agreement which saw them take $100m out of this poorly performing stock;
- concerns over the impact of carbon trading on earnings (some of the debt has covenents relating to CTS);
- several target prices assume further asset sales at 25% discount to market price;
- analysts want to see gearing down to below 60% (currently still 70%)

Kwinana is expected to be the next asset sold followed by Oakley if BBP does go down that path.

Not discussed in the reports, but my discussions with various people in the finance industry, but not directly involved, indicate there are lots of potential suitors willing either to pump in money or acquire assets.