A few hours ago, the FIN published an opinion of Ben Gilbert, UBS analyst. In Gilbert's opinion the current stock price "does not reflect reality." He goes on to say that, adjusting for divestment of Dakine, higher interest costs, and dilution from the issue of options and redeemable preference shares, BBG is currently trading on an FY15 pe of 115.
It seems as if the market has not fully appreciated just how much existing shareholders have been diluted under the current proposal.
Assuming UBS is in the ball park with regard to FY15, and given the obvious risks that still surround BBG, a PE of 115 looks like a massive over valuation. If the market starts to see things the way Gilbert does, BBG's share price could easily halve in the short term.
BBG Price at posting:
45.7¢ Sentiment: ST Sell Disclosure: Held
