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There's a change in mgmt in recent mths and currently under Strategic Review by Standard Chartered Bank as requested from its mgmt. High gearing company and model base on leverage/borrowing, most probably will not survive in the current credit conditions. FA wise, its NAV is ~ 70cts on 2Q report thus, glossly under value. Won't be surprise if there's cash call for survival. I've already cut loss on this one.Prepare to hold v. long and the value become almost worthless if market conditions worsen - just my view & I hope i'm wrong.
Anyone has updates on this counter? Looks like it's nearing below 10 cents at the rate it's going.
Babcock Extends Three-fold Surge on Shorting Ban, Takeover Talk
By Shani Raja
Sept. 26 (Bloomberg) -- Babcock & Brown Ltd., a manager of infrastructure assets, rose for the sixth day in Sydney trading, boosted by a ban on short selling and takeover speculation.
The Sydney-based company's shares rose 50 cents, or 21 percent, to A$2.87, the highest since Aug. 19, at 10:20 a.m. local time on the Australian stock exchange. The company, whose shares have risen 264 percent this week, yesterday denied speculation of a takeover offer by a European company.
Australian regulators banned short selling, with some exceptions, from Sept. 22. Babcock has blamed short sellers for sending its stock down 89 percent this year.
By Shani Raja
Sept. 26 (Bloomberg) -- Babcock & Brown Ltd., a manager of infrastructure assets, rose for the sixth day in Sydney trading, boosted by a ban on short selling and takeover speculation.
The Sydney-based company's shares rose 50 cents, or 21 percent, to A$2.87, the highest since Aug. 19, at 10:20 a.m. local time on the Australian stock exchange. The company, whose shares have risen 264 percent this week, yesterday denied speculation of a takeover offer by a European company.
Australian regulators banned short selling, with some exceptions, from Sept. 22. Babcock has blamed short sellers for sending its stock down 89 percent this year.
Well here's another new about its parent:
Babcock & Brown Shares Gains for a Fifth Day; Denies Takeover Speculation Babcock & Brown Ltd., the worst performer on the MSCI Asia-Pacific Index this year, denied speculation of a takeover offer by a European company that pushed its stock higher for a fifth day in Sydney trading.
I am keeping this counter until it recovers to its IPO price or go bankrupt!
Here's the latest news:Babcock & Brown Gains for Fifth Day on Shorting Ban (Update1)
September 24, 2008 22:34 EDT -- Babcock & Brown Ltd., the region's worst-performing stock this year, climbed for a fifth day in Sydney trading after Australia banned short selling and Goldman Sachs Group Inc. won the backing of billionaire Warren Buffett.
Hohoho! Babcock's parent jump another 50% in Australia trading this morning on optimism Investment bank will be able to raise capital from investors. Have the tide finally turn for this one?
Got move lah....at least half a cent is better than none.
When AU fall SG follow, when AU go up, SG not moving.
Hoho! No reply so far. But it's parent BNB:AU surge again today for ~30%. Is the tide really turn? Can't wait anymore....hehehe!
Has the sky been clear for this one? It's parent's share price has been pushing north recently in AU, time to have a second look? Anybody have its latest Gearing to share?
I am still holding my lots bought at IPO price...paper loss jialat...think I am the only one who bought so high...awaiting my 3 cent dividend now.
I find that TA on low price, low volume counters like this one are not very accurate.
Take a look from TA side from The Edge.
http://investsgx.blogspot.com/2008/08/babcock-brown-structured-finance-fund.html
TA wise, trend down without know target
FA wise, business hard to be valued
I would assume most of the investor who like yield is going to hate risk pretty much.
Avoid.
note that debt is 5x shareholders value, EPS has turned from positive to negative, cashflow decreased 25% and NAV decreased from 79 to 70c from just half a year ago.
=> forward pricing of continued loss, NAV next H (feb09) can be expected to be abt 62.3c.
If it's FA you're talking about, the question of value also has to take into account forward valuations and forward prognosis of the company and sector. Do you expect the sector to do well next year, the year after?
My main concern tho is on technicals: selling by funds even btwn 30c-27.5c. on the plus side, MFI is near zero already.
left_bug ( Date: 22-Aug-2008 09:26) Posted:
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Just hold. Average down if you can stomach the risk. My principle in investments is like this: "Don't show me your income statement. Show me your net worth (equity) and operating cashflow."
jackjames ( Date: 22-Aug-2008 11:12) Posted:
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this company, i dont know la...
if golden agriculture, cosco, yanzhijiang, i think u can wait for rebound , hee.. no bias, but it is true.
whether u sell now or hold. U has actually incurred the loss..
take e $ & buy something that else.
what you should do?
u know when it gives out dividend, the news clearly stated they have problems, incurring losses... that's the first impression, u should not vest this counter... that is the same "idea" i apply to chinaoiltech, nonsense results... better avoid..
for this company, i didn't read through their FA.. but in the news, i know they are not in a good situation, unless there are more latest news that i am not aware.. no points to average counters that are bad..
cut loss? i think it is too late to cut loss.. that will incurr huge losses, right? just hold it for any technical rebound ba.. perhaps their next few quarter will be better.. , u bet.
Then what should we do? Liquidate it and suffer heavy loss? Or buy more to average down and hope it will rise? To me, with 0.3 cents dividend guidance and NAV 0.7, the stock is undervalue. Unless they are hiding something from us or I miss something. I am no expert in reading financial statements so if someone saw something bad, do enlighten me.