Asset sales remain the key. All that changed to day was the company announced that they had been in talks with the major SPARCS holders and have written new terms which are to be voted on. You would assume it's a done deal. The threat of imminent dilution has gone for now. I said that the market was factoring in a very heavy dilution at 3c, therefore today's rise was a reaction to the good news that dilution is perhaps at least 12 months further away. In fact, dilution from SPARCS is but a distant memory as I am confident we will see at least two major asset sales inside that time frame. There will be enough cash to pay out the corporate debt and get the banks off our back and there should also be plenty to pay out SPARCS in cash (we have to confirm if this is allowed). Today's decision bought us all time. In this market, time is a very valuable asset to own. I'm confident that was the last chance to buy BBI below 3.5c. We got a gift in November and those who missed out then got a huge chance this week. The traders will no doubt take their profits and move on. For long term holders, the journey has take another step. Those who are brave enough to hold for the next three years will be richly rewarded. Personally I am not in BBI for peanuts. I said last year this was an opportunity of a lifetime. I still think it is. When will another GFC come along in our time that will allow us to buy quality infrastructure assets at 4c in the dollar?
BBI Price at posting:
4.4¢ Sentiment: LT Buy Disclosure: Held
