Your ok if you have elected for a ANZ diversified portfolio though, the LVR is still 50%. Apparently they did this because of Lehman Bros, not anything to do with BBW.
I remember watching CNX getting hit hard when it was being sold off with ANZ margin calls, it went down to 17c, I sold out at 75c. Sometimes it has nothing to do with fundamentals. This is a good opportunity to the canny investor!
There is still good news to come with BBW. The remainder of the European Asset sale results is due to be announced soon, I believe we will see a real uplift in SP then.
Firstly and most importantly, they are making a profit!
BBW asset price is increasing not decreasing.
Yield is 9-10% (minimum)
If BNB go down, this will only help BBW
They have a development pipeline that will return excellent profits even if they cannot fund/keep assets post construction due to current debt restraints.
They have dramatically reduced their debt to acceptable levels
They are in line to benefit from carbon trading.
Energy prices are on the increase, yet their input costs remain stable.
Interest rates are on the way down.
They will also benefit from exchange rate change
If they sold all their assets, paid off all their debt, IMO, I estimate the final capital return to shareholders would be $3.00-4.00
These are just short term issues, don’t throw out the baby with the bathwater.....
BBW
babcock & brown wind partners group
