broker research, page-4

I was talking to a mate this morning who owns 200,000 he bought at 32c in September. He commented that "everyone is bailing out of BBI, it must be going broke". I thought about that statement for a minute and then looked at the volumes traded over the last week. Even though some 120M shares have been traded in the last two days this week, it is still a very small percentage of the total number of shares in BBI of approximately 2.4 billion. A lot of those 120M would have been "churned". A buyer picked up say 500,000 at 7c and flicked them out at 8.8c etc etc. That means the same person has accounted for 1 million of the turnover and effectively owns no stock. So the thought that "EVERYONE is bailing out" is actually not correct at all. The majority are holding firm.
This stock will be traded heavily now it is below 10c. The traders/gamblers love these stocks.

kiril stated that the danger in holding BBI is with what we don't know. This is true because on what we do know, BBI looks completely and utterly undervalued compared to the actual value of the assets..... 6.7c vrs $1.20+.
94% UNDERVALUED. That's a very hefty discount for the "unknowns" don't you think?
I would like to know how people make investments decisions on "things we don't know". I understand people being wary in this environment and staying on the sidelines but I take the view that it is exactly this sort of "fear based, panic driven" market that is creating opportunities we may never see again in our lifetime.
If I am wrong on BBI and it goes broke, so be it. Life goes on. Money isn't everything but having plenty of it does give you choices in life. It's nice having a choice in how you spend your time. We only live once. BBI has the potential to deliver a life of choices for those brave enough to have a go. A very good mate of mine bought 700K of these at average 7c. He has done his homework after I told him to have a look at BBI. He's prepared to sit on these until 2010 and beyond and see what happens. I think that's a great strategy.