trading halt, page-49

Pete,

I won't post all the articles I have been reading, however as an example KKR are raising between $5-10 billion in an infrastructure fund, Black Rock raised $3 million and Macquarie apparently trying to raise $18 billion for 2 funds (European and American funds)(These can be sourced from google news). Along with PViews post, it may be concluded that infrastructure is a sought after asset class at present. Remember KKR was a leveraged buyout firm and is now going for funded infrastructure.

The trick with BBI, is that it has massive debt. It needs to meet current committments to allow it to survive to a point where credit markets return. Believe it will and you will make money if it happens.

I don't know about everyone here, but I do not have the $ to sign up to one of these private equity deals. At 6.8cents a share I believe that I have a good risk/reward opportunity to get into this asset class at a very good price.

If BBI survives there will be no need to fire sale assets. Therefore, with the external demand, the assets should retain their value.

Infrastructure is a defensive asset and really should not move in line with the markets. However you must consider, at BBI's current price it hasn't got much room to move, as 6.8 cents really still is pricing in failure. We who hold long term obviously believe the market is wrong and time will tell.

One reason I see the move to infrastructure is that through CAPM pricing models, it returns are inflation protected and naturally interest hedged to a large degree. I see with all this world wide money printing that inflation may return with a bang and an upward spike in interest rates in the longer term. All my views and as always I could be wrong.

Cheers