Shares of Babcock and Brown Limited (ASX:BNB) were up 13%...

Shares of Babcock and Brown Limited (ASX:BNB) were up 13% yesterday. Shares of Babcock and Brown Power (ASX:BBP) were up nearly 16%. The Power group announced it had secured $2.7 billion in financing and arranged to sell $360 million in assets.

--It's never good when you have to sell the furniture to pay the electric bills. But then, BBP was down 46% last week when it looked like tight credit markets might prevent it from raising money in the debt market at all. The model-using debt to fund asset purchases-still faces some big challenges. We think it still sucks, generally speaking.

--As a trader though, noticing all the bad news with BNB and BBP might have been your cue for a quick-turn around trade. It's not the sort of thing you'd risk retirement money on. But with so much bad news in the market, we expect to see more of these turn-around trades. They key is figuring out when it can't get any worse in a stock. That's tricky.