Ann: Result of Noteholder Vote - Capital Restruct, page-8

re: Ann: Result of Noteholder Vote - Capital ... Re: shareprice

A combination of things:
1. end of fin-year tax loss selling
2. market glut of noteholder conversions have come on market with no matching demand to catch it (except the cap-holder who picked up another 6 mil shares today). I don't expect a lot of fund managers have BEC on their radar.
3. a lot of uninformed people who frankly don't give a damn about where the business is headed and want out now that there's a more liquid market to sell into other than the virtually petrified former BECG market (wish I could have allocated more to this co., at 25c for the notes! but alas).

Depending on the mercy of the cap-holder waiting at the bottom for the scraps to trickle down as we approach July, I wouldn't be surprised at further falls here and there if there is no competition in the next few days on the demand side. I suspect however that there will be no improvement in the share-price before prelim August, unless some corporate activity takes place.

Re: the business

I still have a hunch there is a fairly good reason BOSI and ACR have acquiesced to taking a PERMANENT (i.e. not a forcibly-liquidated) stake in BEC - the business is worth A LOT more alive than dead, and now they're committed to keeping it that way. Since they have major stakes now, they have all the voting power needed to steer the company towards a hopefully salvagable conclusion - sale to Oman? Stockland? BOSI do after all want their bankable cash back, and ACR would like to pay their own creditors eventually (not in BEC stock!)

Worth a couple of months wait methinks. Residential property's problem isn't lack of demand. It's undersupply and overpricing. I toured the Divercity Waterloo development and the first stage of construction has already been sold out. Nice design for digs. A steady stream of income over the next 3 years.

There's a reason they relinquished $80m for 2.56c a share, not 1c...

IMHO DYOR