BNB babcock & brown limited

bnbsucker, page-9

  1. 4,029 Posts.
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    Another way of looking at it- you only lose if you sell your shares.
    Huh? Well the business is pretty much the same as it was a few weeks ago. You still own the same proportion of it and its income distributions etc. ,no matter what crazy gyrations there are in the share price.
    Better to hold and ride it out now than bail, because once the stop losses cut out and the panic selling stops, some bargain hunting will begin. I am one who is just going to wait till it finds a bottom then go in. I want them back after selling at 13.75 on a bad chart. When it kicks up the shorts will start running for the exits and they will not be able to get through the door all at once. Then it will spike up.
    Some interesting news. Transurban (TCL) said today has used a new vehicle called tax-exempt Private Activity Bonds (PABs) to finance the new Capital (Washington) Beltway investment. The interest rate is 4.97%. Sound good? It gets better. The issue was three times oversubscribed.
    They got subordinated debt from a government facility at 4.71% for 40 years. US $589 million worth. (TIFIA loan)
    Babcock may be able to tap into these low rate sources as well at some point to reduce exposure to banks and their silly market-capitalisation poison pills. After all the loans are not secured against stock, surely, but assets?
    Why this market capitalisation crap? its just hedge fund bait. Banks shoot themselves in the foot, surely.
 
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