Totally agree Jake..but also remember this, todays price properly reflects the losses coming in 08/09 (which will be horrendous).
BBC were known to be very aggressive in getting their properties revalued upwards in 07/08...in fact revaluations of $71.8m (reflected as income) were far greater than the NPAT of $41m.
My tip is that the properties will be devalued by June 30, 2009 by between 10% and 30% giving us a likely loss of between $120m and $350m.
Thankfully this is a non-cash loss but it will impact on the NTA by reducing it from the 94 cents as stated at 30/6/08 to between 40 cents and 75 cents.
Dividends? Put yourself in the shoes of a director...if you had to borrow to pay a dividend, would you in this climate?
BBC will survive but it will be put into the oxygen tent for the next two years unless LLC really decide to aggressively grow it...but to do so they would want more than 40% of ownership and control.
BBC Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
