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Babcock & Brown SFF
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Farmer
Master |
30-Jun-2008 16:37
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Today is the last day to buy in with dividends of 5.2cts, it seems that many are still interested in getting the $$ on 5th Sep. Let's see come 1st Jul onwards, this counter will crash or not?
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terencefok
Master |
17-Jun-2008 08:15
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SGX-ST Release 17 June 2008
BABCOCK & BROWN GLOBAL INVESTMENTS LIMITED –
CONFIRMATION OF CORPORATE DEBT FACILITY In light of the recent announcement by Babcock & Brown Limited (ASX: BNB) concerning a potential review event under its corporate debt facility ("the announcement"), Babcock & Brown Global Investments Limited ("BBGI" or the "Company") would like to confirm that the announcement has no impact on the Company’s corporate debt facility.
The Company is expecting to complete its refinancing on 20 June and will make an announcement upon completion.
Importantly:
By order of the Board of Directors
Name: Sylvia Wiggins
Designation: Director
Date: 17 June 2008
ENDS
Further Information: Edwin Hsu
Babcock & Brown (Singapore) Pte Ltd
edwin.hsu@babcockbrown.com
+65 6309 4684 |
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jackjames
Elite |
16-Jun-2008 09:22
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yes, the dividend is super high , yield about 9%.. but I am very sure, right after the Ex-date, this stock will start to crash, until no where... let's just wait until July 1st... it is going to happen, don't play play... if you can run, better run fast...
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terencefok
Master |
16-Jun-2008 09:12
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Anyone shorting this stock should play with caution. Should they sell of their power assets, shortists might be caught naked. Hehe | ||||
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terencefok
Master |
16-Jun-2008 09:10
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Babcock to Receive Offers for European Wind Assets This Week By Stuart Kelly June 16 (Bloomberg) -- Babcock & Brown Ltd., Australia's second-biggest securities firm, said it will receive offers for its European wind power assets this week ahead of their expected sale in the third quarter of this year. The Sydney-based company will also appoint independent chairmen to four of its listed funds, including Babcock & Brown Power, it said in a statement today. Chief Executive Officer Phil Green is under increasing pressure to sell European wind farms to restore investors' confidence in his business model and stave off a possible review of A$2.8 billion ($2.3 billion) of loans, triggered by last week's collapse in its stock and listed funds. Babcock's shares rose 4 percent to A$5.46 as at 10:06 a.m. in Sydney. The company is meeting with its bankers after last week's 53 percent slump sliced its market value to A$1.75 billion amid concern the company's strategy of buying assets and bundling them into funds may falter. News from Bloomberg: Should Babcock's market value remain below A$2.5 billion at the end of a four-month review period, banks would have the right to force the company to pay back debt early or sell assets. During the review period, Babcock must also get permission from creditors to pay out dividends. The sale of the wind power assets, including the Enersis business in Portugal, could bring as much as A$2.5 billion, according to Kieren Chidgey, an analyst at Merrill Lynch & Co. A successful sale could trigger a rebound in Babcock's shares, which trade at less than three times earnings after falling 80 percent this year, said ABN Amro Holdings NV analyst John Heagerty in a June 12 note. Failure may increase the risk of banks demanding early repayment on A$2.8 billion of debt. Babcock, founded in 1977, buys infrastructure assets which it bundles into private and listed funds and manages for a fee. |
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terencefok
Master |
16-Jun-2008 09:04
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Hmm...I shall buy more, yield is getting higher for me. A pity for those who sell now. They will be at the mercy of those who buy now if they want to get this high yield play later. Cheers | ||||
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shplayer
Elite |
14-Jun-2008 12:00
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When parent gets whacked, the whole family gets affected.......so I woild still advocate caution......wait for the dust to settle before making a decision.
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178investors
Veteran |
14-Jun-2008 00:04
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The shares that got whacked is the parent B&BLtd (BBL) sitting at top of the corporate hierachy. BBL owns about 14.3% of B&BGlobInvtLtd (BBGIL). One of the structured finance funds held in BBGIL is the sgx-listed BBSF. So there could be other B&B structured fiinace assets (like infrastructure and power) held under BBGIL but under separate funds from BBSF. BBGIM is the investment manager for BBGIL. I think as long as the parent BBL can sail thru the crisis with some help from their bankers, things should settle down gradually. |
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terencefok
Master |
13-Jun-2008 16:24
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Babcock and Brown Power is under infrastructure, one of the five business groups of the B&B Group. BBSF is not exposed to infrastructure assets. | ||||
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terencefok
Master |
13-Jun-2008 16:11
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NAV has been reduced from 0.90 in FY 07 to 0.75 in Q1 08, due to certain assets being marked-to-market. Still, the stock is trading below its NAV. Got some buy support at 0.63. Went through its balance sheet, still quite cash rich. | ||||
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178investors
Veteran |
13-Jun-2008 15:29
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terence, thank u for clarifying. | ||||
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terencefok
Master |
13-Jun-2008 14:25
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I think there is some confusion here. Let me try to clarify things up. Based on the 2007 AGM presentation slides:
In other words, if there is a problem with BNB, BNB may need to sell their 10% stake in BBSF to raise capital (in part or full). The crisis appears to be at Babcock and Brown Power, after a pipeline explosion. BBSF does not own Babcock and Brown Power. And neither does BBSF owns BNB, so BBSF is not exposed to the crisis at Babcock and Brown Power. Hope this helps. |
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178investors
Veteran |
13-Jun-2008 14:07
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Babcock & Brown Shares "Crisis of Confidence"
June 13 Babcock & Brown Ltd. plunged to a record low in Sydney amid a ``crisis of confidence'' among investors after the company's market value fell below a level allowing lenders to review A$2.8 billion ($2.6 billion) of debt. Babcock tumbled as much as 32 percent, and the company's market value has more than halved this week. UBS analyst Jonathan Mott cut his stock rating on the manager of infrastructure assets such as ports and railways to ``neutral'' from ``buy,'' citing a ``crisis of confidence'' among investors. Citigroup Inc. and Merrill Lynch & Co. also cut ratings on Babcock, after its market value fell below the A$2.5 billion level that may give creditors the right to demand early repayment of loans. The company, which said the rout was caused by short- selling of its stock and that business was running as usual, today signed a $7 billion deal to buy Angel Trains in the U.K. ``The market is sending a very clear message to Babcock that it no longer has confidence the company can keep on bucking the effects of high debt levels,'' said Geoff Wilson, who helps manage $385 million at Wilson Asset Management in Sydney. ``The banks may try to keep it alive, but it looks like investors have had enough.'' Wilson said he sold his 100,000 Babcock shares in March for an average A$16 apiece. The stock traded at A$5.45 at 12:23 p.m. in Sydney. Below IPO Price Babcock fell as low as A$4.70 on the Australian stock exchange today, dipping below its October 2004 initial public offer price of A$5.00 for the first time. The company has lost A$9.9 billion of market value since reaching a record A$34.78 on June 19, 2007. Chief Executive Officer Phil Green was wasn't immediately available to comment, said Babcock spokeswoman Erica Borgelt. She declined to comment on today's stock drop. Babcock, which buys infrastructure assets it then bundles into private and listed funds and manages for a fee, said on May 30 it expects full-year group profit to increase at least 17 percent to A$750 million, repeating a February forecast. Merrill's downgrade reflects ``a loss of confidence in management and increased risks following the triggering of a corporate debt facility review event,'' Kieren Chidgey said in a note today. ``This is a further blow to management's already fragile credibility.'' Writedown Woes The company's market value would have to remain below A$2.5 billion for at least four months before banks can demand early repayment of debt, Babcock said yesterday. Merrill's Chidgey cast doubt on whether the company will be able to negotiate favorable terms with its creditors. ``With 25 banks part of the corporate debt facility, chances of lenient terms being agreed by all appear low and an accelerated asset sell down could materially impact value,'' he wrote. Babcock's publicly traded funds also fell today, sparking concerns the parent company may have to write down the value of its holdings. Babcock & Brown Infrastructure, one of 13 listed funds, slid as much as 27 percent, while Babcock Wind Partners dropped as much as 13 percent. Babcock & Brown Power fell 25 percent amid investor concern about the effect of disruptions to supplies following a pipeline explosion 10 days ago. The stock has slumped 75 percent this year as it works with its bankers to refinance A$2.7 billion of project finance debt. John Heagerty, an analyst at ABN Amro in Sydney, estimated the declines may force Babcock to write down the value of its shareholdings by as much as A$290 million. ``We believe that a certain level of writedowns is now almost inevitable,'' Heagerty said in a note dated yesterday. |
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178investors
Veteran |
13-Jun-2008 13:50
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Is BBSF related to Babcock and Brown in Australia? Does BB in Australia owned substantially part of BBSF? Read that in the last 2 days, share price of BB Australia has fallen more than 50%. Any impact on BBSF? |
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terencefok
Master |
13-Jun-2008 13:50
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Hi teeth, thanks for the news. Guys, do trade with caution. | ||||
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terencefok
Master |
13-Jun-2008 13:39
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Guess the price drop a little due to the effect of inflation, which in turn lead to higher interest rates. Bonds and fixed income instruments that pay lower than the central bank (eg. Fed, MAS, ECB, Bank of London etc...)interest rates would fall so that the yield would be closer to that of central banks. Anyway, the yield offered here is more than sufficient to defend you against rising inflation (where on earth can you find such high yield of above 15%, even junk bonds do not offer that high interest). The additional plus point is that its at a discount to NAV, around $0.90. So there is still the potential for capital gains, assume it only climbs back to be on par to NAV. The cons: this type of asset class is still new to the Singapore market so migh need time for investors to get used to it, but I believe they will soon understand it. Strategy here: buy it now with low capital base to enjoy high yield not only now, but into the future as well. Markets are still volatile, so pace your buying. Once you acquire at low price, your capital base is low, so hence the high yield. Vested here, looking to buy more in the near future. |
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shplayer
Elite |
13-Jun-2008 10:41
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Bit risky now......wait till the air has cleared.
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IreneL
Senior |
13-Jun-2008 10:06
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Hi Terence How so? I was looking at the price dropping further before considering buying. | ||||
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terencefok
Master |
13-Jun-2008 09:44
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The more this drops, the better my yield. Vested. | ||||
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terencefok
Master |
09-Jun-2008 20:01
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Very good close. 5 day moving average start to turn up. Vested. | ||||
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