BBP 0.00% 9.5¢ babcock & brown power

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  1. 47 Posts.
    Yes they shouldn’t have problem with demand, we are a major customers of BBP/Alinta and during the summer periods we have to find alternative source of energy as they are not able to meet demand. Such business is always in demand as the cost of building a power plant is substantial and non-existence.

    Their asset is great and I won’t expect them to have any trouble to have any major variance on their earnings guidance as their business is very stable.

    The problem is that they paid too much for Alinta and they cannot afford to pay their interest to banks but don’t you think they have bee punished enough with a 98%+ drop in their share price, atm they are close of being priced as in liquidation status, the moment we find out they will survive or taken over I doubt we will see anything close to 12 cents again. Given their type of business it should be quite stable in 09 and with falling interest rate BBP will be looking quite attractive.
 
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