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becareful, many people rush into the pool because of fat dividends while it was 60 cents.. now only 27.5 cents... totally not worth it...
i rather go for blue chip like SPH..
terencefok ( Date: 22-Aug-2008 08:01) Posted:
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pls do continue to update us :)
Finally a management overhaul, new Chairman and CEO at Babcock in Australia. New management is going to start clearing the mess by reducing debt by 20 to 30 % in the medium term. Their business model was a copycat one from Macquarie and now even Macquarie finds it no longer viable, so they also start selling assets.
The Singapore unit here looks ok to me. As long as operating cashflows remain good and the company has cash, we will still get our dividends.
Volumes are declining as price falls, today a bullish signal was indicated based on candlestick charts.
Whether prices stabilize or not will largely depend on the outcome of the parent's board meeting tomorrow and market's confident on the new Chairman/CEO(if any) who're taking over the post one of them tip to be its CFO. To me, 0.29-0.30 price is deeply undervalue....will consider a buy once more light is shed on its restructuring.
0.29 did not hold. Next buying price to average it down is 0.19 and that will bring my average buying price at 0.55.
I agree with terencefok's view esp. on sentiment concern...also on long term view. As mentioned earlier, BBGI is affected of what has been happening to its AU listed parent B&B Ltd right now, read on....Babcock Requests Trading Halt, May Make Management Announcement
By Stuart Kelly and Jason Scott
Aug. 19 (Bloomberg) -- Babcock & Brown Ltd., the worst- performing stock on the MSCI Asia-Pacific Index, requested its shares be suspended in Sydney, and said it may make an announcement on management on Aug. 21.
Babcock fell the most in two months at the close on concerns that credit market turmoil may cut proceeds from asset sales to reduce debt. Executive Chairman Jim Babcock and Chief Executive Officer Phil Green may step down early, the Australian Financial Review reported today.
``The company is aware of ongoing media speculation relating to management and board changes,'' Babcock said in a statement after the market closed. ``While no decision has been made, a subcommittee of the company's board is meeting'' on Aug. 21, ``to consider and make a decision on board changes as part of our response to corporate governance issues.''
The Sydney-based manager of infrastructure assets has dropped 87 percent this year amid a slump in investor confidence that has wiped A$7.9 billion ($6.8 billion) off its market value. Babcock tumbled 24 percent to A$3.45 today. The stock has lost almost half its value since Aug. 11, when the company said first- half profit dropped as much as 40 percent.
Babcock & Brown Power, one of 12 listed funds managed by Babcock, yesterday said it sold a power plant at a loss to cut debt and bolster its balance sheet.
``There's too much bad news surrounding this company,'' said Matthew Kidman, who helps manage the equivalent of $350 million at Wilson Asset Management in Sydney. ``This will probably continue for some time, after which equity holders will be wondering what's left.''
Profit Decline
Babcock, 63, who founded the company in 1977, has brought forward plans to step down as the board considers recruiting independent directors, and Green, 53, is considering his role amid a possible transition of power, the Review reported, without saying where it got the information.
Babcock is expected to announce its first profit decline since listing in 2004 on Aug. 21, after cutting the value of property and hedge funds. The company's debt of A$11.4 billion is almost five times shareholders' funds, Bloomberg data show.
The global credit seizure that has saddled financial institutions with more than $500 billion in losses and asset writedowns has brought into question the company's strategy of borrowing to buy utilities and bundling them into funds.
Taking Charges
Babcock Power, Australia's biggest publicly traded generator, yesterday said it will take a non-cash charge of A$410 million in its 2008 earnings to write down the value of the Alinta retail unit, set at A$1.6 billion in November, in addition to a A$42 million loss on the sale of the generator in Tasmania state. It has cut net debt by more than A$770 million in the last six weeks by selling plants.
The sale of the Tamar plant for A$100 million after spending A$223 million on its construction ``is an awful outcome,'' said Paul Johnston, a utilities analyst at Commonwealth Securities Ltd. in Melbourne.
Fallout from the global credit squeeze snared Australian companies including Babcock, Allco Finance Group Ltd. and ABC Learning Centres Ltd. this year as borrowing costs increased. The Australian companies relied on cheap credit in past years to finance expansion overseas and at home.
Babcock this month said net income at Babcock & Brown International fell between 25 percent and 40 percent in the six months ended June 30, from A$250 million a year earlier.
Declining Value
Babcock, listed in Australia, owns 87 percent of Babcock & Brown International. U.S. stakeholders that took up shares before the company's initial public offering in 2004 account for the remaining 13 percent.
The shares tumbled a record 53 percent in the week ended June 13, pushing Babcock's market value to a level that gave its bankers the right to demand early repayment of A$2.8 billion in loans. The company in June agreed to a higher interest rate to fend off the review.
Allco, a Sydney-based manager of ships and aircraft, has lost 93 percent of its market value this year amid margin calls on directors' stock, and as bankers forced it to sell assets to repay debt. The company in May forecast a full-year loss of A$1.5 billion, the biggest by an Australian company since insurer AMP Ltd.'s A$5.5 billion in 2003.
Babcock will report first-half earnings on Aug. 21, while Allco will post on Aug. 29.
hit the 0.29 cents mark.
Bad sign. Holders are turning sellers.
I thought support at 0.33. Guess I need to average down again in near future. Market keep falling.
F.Y.I., management team own part fo the company too, they are not selling. One day you might unknowingly sell to them and they will laugh at your foolishness. Investment is about long-term view, in which I strongly believe in, and also what fund houses such as Aberdeen are doing. No wonder they are proud to advertise their long-term approach in the trains.
guess it is due to the lack of understanding of how this type of investment works. To me, it is like other REITS, they buy assets and lease them out. Most of the income received is distributed. If this one can fall like that, I wonder if the same would happen to other REITS such as CapitalMall when the property market corrects and their assets have to be marked to market? Something to ponder about when you go to sleep tonight. Think about what those guys have been doing recently by selling, I guess I may have to create "sentimental analysis" as technicals don't seem to work when market is driven by sentiment. Vested.
Current dividend guidance works out to 20% annualised yield based on today's close at 0.30, do note that it is AT LEAST 3 cents. NAV now is 0.70, not much lower from Q1, current NAV already reflects investments that are marked to market. Looking to buy more soon.
0.295 , eye popping.... i see no support point...
B&B Ltd, parent of BBGI traded in AU was punished last week when it reported a 40% less 1st half profit due to share and real
estate prices tumbled, eroding the value of investments. However, it rebounded >10% from its record low price of A$3.91 this morning, this will have a bearing to BBGI's performance in SGX.
It's touching all time low of 33.5cts right now. Those who doubts its NAV of 70cts....how about 50% discount? Will this be the end of the tunnel???
as expected.... but didn't know it touches this level so soon..
jackjames ( Date: 08-Jul-2008 14:43) Posted:
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I thought at 57c, being able to pay a 5.2c interim dividend was already quite impossible. Expected a drop then. Maybe it can still perform wonders by keeping its dividend current price to maintain super yield.
No, this company is basically just a shell with some junk bonds, you might as well just buy the junk bonds directly if you are looking for yield. I definitely won't trust the NAV of 70c, unless its marked to market.
tajixu ( Date: 15-Aug-2008 11:01) Posted:
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(-10.8%)
Gosh, so low. Good thing I hold out. Now queue to buy to average down. Don't know if this is a good.
B&B has reached its new low after announcing its 1H2008 results.
Is this counter worth look at?
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| Open: | 0.410 | No. of Shares: | 387.630m | PE: | 2.3 | ||||||||
| High: | 0.410 | Mkt Cap: | S$387.630m | EPS: | S$0.177 | ||||||||
| Low: | 0.365 | 26-Wk High: | 0.775 | Div: | S$0.107 | ||||||||
| Last Close: | 0.415 | 26-Wk Low: | 0.415 | Yield: | 25.8 | ||||||||
| Remarks: | -- | Avg. Vol: | 750,718 | NAV: | S$0.75 | ||||||||