It appears the new management is no better than the old management. We must have had 4 downgrades in 6-8 months. Not convinced that the cause of lower earnings can all be on weather and recession, maybe some poor maintainence management etc as well. Paying Rolph $2m per year is a joke given the continual downgrades.
I also believe that the current board must take us for fools. The obvious question is why would Origin take a contract that is out of the money by $125m and pay BBP $1!!!! I hardly think Origin is that charitable! There has to be more to this and it deserves explanation, but they are and have been, treating us like mushrooms.
Having said this all is not lost. I suspect that albeit more onerous they will manage to renegotiate bank facilities, and it should be noted that this is no BNB. BNB had no business but for ripping fees out of satelites, this is a real business albeit not travelling well presently.
The key to survival is not what they have told us but rather what they have not told us and that is 2010 and beyond earnings (not that we would place much reliance on this given their past guidance performance, which will not be missed by the banks!).
I suspect that we will have an anxious wait for the bank response but we will get thru having paid our pound of flesh. Thus i expect the stock to relist week after next and trend down until such time as a sale of all or part happens.
Good luck to all of us, we need it!
BBP Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
