nothing has changed people!, page-26

I can't say I'm overwhelmed by todays price action... in fact, it is encouraging to think that maybe...just maybe....some semblence of order is returning to the market.

Fundamentally, BBI's business is predominantly underwritten by regulated assets. I have seen some of the documents typical of these type of assets and they have the most amazing un-breakable, cleverly crafted 'hell or highwater' clauses I have ever read. In itself, in an environment of extremely volatile alternate return sources, recognition by the market of this sanctity of returns must be priceless...surely.

The residaul variables were (and to an extent still are) I thought limited to European operations, establishing / confirming clear access to cash flows associated with NGPL and the extent to which wankers (er sorry...bankers) have gouged.

The NGPL outcome I thought was good. The European operations are at least in a neat box and I suspect postioned to enjoy some recovery consequential of improving economic conditions throughout Europe. No stunning surpises in the remaining assets. Yippeee!!

The bankers certainly did their but their tenure I think is finite...

Of course there is still some jostling with respect to financiers, including the hybrids but none I don't think is threatening. Brutally, if BEPPA holders want their $ now or this side of 2012, sue BBI...if I were managing BBI that's about how I'd play it... bankers are way ahead of the hybrids!!! On this basis, I don't see too many unpleasant things ahead.

What was most potent today was (a) information (b) thorough quality information (c) a sense that BBI management is in control and thinking ahead and proacvtively managing the situation. Very encouraging indeed.

All of the above is why the market reacted as it did today. (Hopefully) we will see much more of the same ahead...

DYOR