takeover value, page-4

going by the the powerco transaction they got 10x EBIT.

given BBI showed EBIT of $260m they should have an equity value of around $2.6b or close to $1 per share, not $0.06.

i think this is going to be one of those stocks you buy 100k of for a punt and just wait for the markets to turn. why would you put $5k or so into a spec like FMS when you know that BBI has real assets and is making money from its assets?

the thing i have learnt, sorry i should say reinforced in me is that analysts are crap as well as fund managers and brokers. they dont identify the value that is clearly available with BBI. how many people have brought a property and at certain stages it hasnt provided any income only for its value to double over a 5 yr period? this is what will happen with BBI, however over the next few years as long as they can service and rollover their debt then we could be looking at $1+ again.

imagain if someone wanted to buy the coal terminal they have in QLD, it would go for 15x EBIT and at the moment the market is valuing it at virtially nothing.