(These are propositions be read like Martin Luther’s 95 Thesis)I...

(These are propositions be read like Martin Luther’s 95 Thesis)

I consider that the BAM deal is a “done” deal.

In my opinion the BBI stock is a dead stock. At 4.2 cents, it has slightly less upside that a deposit in a savings account, and a good deal more downside. Holders should get used to this and move on.

I am not particularly concerned about the ineptitude of the current BBI directors and executive management. (The heavily discounted prices at which I acquired my BEPPA holding valued the stock in well under my assessment of BBI management competence.) I do not expect that they survive the restructure by any great length of time. Brookfield do not strike me as the sort of people who suffer fools.

I am not concerned about increases in the CEO’s pay and directors fees. With respect to my previous observation, they may not be enjoyed for long. That aside, these amounts of money are trivial in the overall scheme. I am more puzzled that the CEO of a ASX100 firm was being paid $350,000 (or whatever it was). I have always thought that “If you pay peanuts, you get monkeys”.

I am not particularly concerned about Brookfield as a future business partner. They will certainly play hard at the start to get the best possible deal for themselves. If I was a Brookfield stock holder, I would expect nothing less. Once the new structure is running, it is more likely that they will behave like good business owners than thieves. Their business model depends strongly on using partnerships to diversify risk. I haven’t heard about other partners walking away with burned fingers. Quite the contrary…

If contributors to HC are concerned about insider trading with respect to recent price movements in BBI and BEPPA (and I share their concern) they should stop complaining and start acting. Get behind Melua and file a complaint with ASIC!


Disclaimer: As always, understand that these are the thoughts of a BEPPA holder. We should all do some research of our own and take responsibility for our own decisions.


Afterthought: With respect to my earlier comment about the sadness of posting on HC on Saturday evenings, I shall now take my own advice, and go out for dinner!

Cheers all!