towie wrote When BEPPAS trade at 30 cents I would expect BBIs to be trading also at around 25 cents.
Hi towie, I am not so sure about that. There really should not be such a strong correlation between the BBI price and the BEPPA price once the market is convinced that BBI will survive. The company could indeed be in a much stronger financial position post asset sales yet it MAY come at the expense of equity holders rather than debt holders. In such a scenario, BBI could indeed trade at say 15c yet BEPPA may trade at 40c. I have always maintained BEPPA will gap BBI significantly once the company is safe and in my opinion that is even more relevant now.
BBI Price at posting:
6.3¢ Sentiment: None Disclosure: Held