BJT babcock & brown japan property trust

fat prophets report re bjt, page-11

  1. 2,499 Posts.
    Yeah Japanese people probably experience quakes on a daily or weekly basis but I think you might be underestimating the problem a bit. The government study was talking about a MAJOR quake, closer in scale to the 1923 Tokyo quake which wiped out a third of the city, and hundreds of thousands of buildings, than to the regular mini quakes.

    A professor at Cambridge put it something like, historically, a major quake hits Tokyo every 50 years - the last one to hit it was in 1923, so it's been building and building and is now overdue.

    Oh yeah, forget about the 50 years timeframe I quoted earlier, the study has another finding: 70% chance of a major quake sometime in the next 30 years.

    http://www.channelnewsasia.com/stories/afp_asiapacific/view/122207/1/.html

    A major quake could very possibly wipe out the entire value of BJT shares, remember they have borrowed heavily to purchase the buildings and are 100% uninsured against quakes.

    Well that's just my opinion, I personally prefer to play it safe, but I can see if you don't mind living with a bit of risk and then BJT should be fine for you. Best of luck BJT holders.

 
watchlist Created with Sketch. Add BJT (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.