my bbi valuation / dbct sale flows, page-6

favro, to truly get an NTA estimate for BBI, you are going to have to factor in something for dilution. Using shares on issue as 2.5B is just not realistic.

The market is factoring in total dilution. At the very worst it does look obvious we will have a second lot of SPARCS dilution in November and possibly some more SPARCS dilution next year.

May I suggest at the bottom of the spreadsheet you run a range of scenarios for shares on issue, such as:

1. Total conversion of BEPPA (incl accrued interest) and all SPARCS (as your worst case starting position).
2. Conversion of BEPPA and the Nov 2009 SPARCS on conversion request (ie $25M)
3. Conversion of BEPPA only.
4. Partial conversion of BEPPA and part payment of cash.
5. No conversion of BEPPA (as your best case)

Then extrapolate the options above across a spread of share prices used for conversion, eg 7.5c, 10c, 12.5c, 15c etc up as far as you want to go to work out how many shares you would have on issue under each scenario and each share price.

Then give each scenario above a % likelihood of occurring and you will have yourself a whole range of figures to choose from and from which to launch a discussion on the string about it.

See how you go.