Great example of robber barons. This thing listed for a billion less than four years ago. In that time, management blew almost the whole lot.
The amazing thing is that amongst all this destruction, BNB collected $9.5m in management fees in the past six months. The board has now hired a CEO for $900,000 a year. To do what, I don't know as this thing is essentially a cash box on wind down mode.
When the market is at its peak these people are buying. Now the market has tanked, they decide to do a capital return! Isn't their mandate to buy low sell high?
Not only that, these robber barons have gambled some cash on derivatives as well which now requires booking $40m as a liability. There is around net $280m cash left. $100m will be returned in a capital reduction. Possibly $30m will go to break the management agreement. $15m for even more 'management' fees. Management keeps the rest of the cash in the company so that their exhorbitant salaries continue to get paid. I think 60 cents a share is all shareholder are going to get from this dog.
BCM Price at posting:
62.7¢ Sentiment: Sell Disclosure: Not Held
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