BNB babcock & brown limited

The sp never got to mid 5's like I was hoping. The debt review...

  1. 156 Posts.
    The sp never got to mid 5's like I was hoping. The debt review announcement came a day later than I had guessed and share price bounced nicely, but not into the 8's (yet). Now that the debt review has come and gone the price is traveleing in low 7's without much downside risk.
    My view on the next six months:
    On the positive side, I see some asset sales giving the price a boost on the occasion. In the abscence of any major negative news, I expect the stock to keep travelling upwards to around 15-16 dollars. The reason is that this stock is still massively undervalued on a price to earning ratio - I think s pe ratio around 7-8 is achievable in the current market. As such, there will be a re-evaluating of the sp over the next month, imo.
    On the negative, I'm a bit wary of a profit warning around December. In December, I will be looking closely at the deals pipeling for 09/10. In my opinion, this is the key bit of information for the sp in December.
    DYOR - but I think this is a buy, selling on highs brought by asset sales within the next 6 months. I want to be all out by December with the view to get back in on expected weakness in sp due to potential profit warnings. However, if profits are maintained and pipeline looks solid, I would expect the sp to reach low to mid 20's, but my view is this is less likely. I can't see too much downside at the moment??? Any thoughts?
 
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