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BBW - Babcock & Brown Wind Partners Group

Discussion in 'Stocks 0-H' started by stockmaster, Aug 7, 2006.

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  1. stockmaster

    stockmaster

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    Price has slumped on friday after the announcement of profit downgrade. Surprisingly the price went the other way this morning against the momentum it has from friday.

    Secondly JP Morgon stayed with the rate though there was a profit downward which is unusual esp for JP.

    Any thoughts on this company? Any price prediction.


    cheers :2twocents
     
  2. Porper

    Porper Ralph Nelson Elliott

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    Good rise in price but the volume was 6 times lower than Friday which gives a clue to what is happening in my book.

    I am looking at a potential short position with this stock.See what happens over the next day or two.
     
  3. Ko Ko

    Ko Ko

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    Im holding this stock too. I think on Thursday there was an overselling of this stock which had this dramatic drop in share price. On that thursday I was observing the buyers purchasing 100,000 dollars plus of this share.

    I think this share has good benefits in the up coming months from futhur acquisitons of other wind farms :)
     
  4. chops_a_must

    chops_a_must Printing My Own Money

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    I've been watching this one for a while, and after it looking as though not even a gale could move the share price, it's looking good. Slowly moving up on relatively large volumes for this stock. Announcement of 12.5cps dividend today. Pretty damn good given the share price.

    It's a long term hold for me. I'm looking forward to seeing what this does over the next few years.
     
  5. chops_a_must

    chops_a_must Printing My Own Money

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    Gapped up on large volume today. Could very well have gotten out of the downtrend it has been in.
     
  6. billhill

    billhill

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    Decent move in this share the last two days. Anyone know why. The only thing i could think of was the victorian report suggesting coal power will be affected by water shortages. Either way i'm not complaining.
     
  7. chops_a_must

    chops_a_must Printing My Own Money

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    Decided to pyramid in to this stock the other day, as I knew a dividend was imminent and the formation looked good. And keeping with my strategy talked about elsewhere, I think these eco-stocks will be nice to hold towards the coming election. And a number of them are looking very good now, so the time is right for me. CNM is another one right now in my eyes as well.

    Also, announcement out about divis... and a good DRP as well:

    But either way you draw it, it looks good for a potential break. Target for this run at 2.20, but it is a bit of a turdle. Very stable though.
     

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  8. roland

    roland

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    BBW have finalised the Cedar Creek windfarm purchase, and today announced Merrill Lynch now hold nearly 6% of the stock. I am using BBW and BBP to start growing my dividend returns. Aegis consensus have BBW, BBP and BBI all on strong buys. I have normally relied on ZFX for dividends but recent SP falls and Zinc weakness has me looking for a better dividend stock. Anyone have thoughts (conflicting or otherwise) on the Babcock satellites?
     
  9. agro

    agro

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    Financial Results come out end of Feb...should spark market sentiment.
    Anyone buying at the bottom now?

    I am looking to accumulate but not certain.
     
  10. JTLP

    JTLP

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    My only problem with stocks like this (BBW, BBI etc) is the fact that although the dividend is quite high, the Debt to Equity ratio's are pretty extreme.

    ROE pointed this out on BBI

    BBW has like 170% debt to equity ratio
    BBI has 202% debt to equity ratio.

    I only did basic accounting but these numbers seem pretty extreme. Does it seem that BNB are using a huge leverage to keep these afloat?
     
  11. roland

    roland

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    I would be buying at the bottom, if it were not for the fact that I've also reached the bottom of my financial resources. :mad:
     
  12. roland

    roland

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    From my understanding, the BNB peripheral principal is to be continuosly negative geared - they run on debt which has better tax benefits than running on cash (correct me if I am wrong, I could be talking through my hat) :)

    The assets collected are all generally targeted prior to the peripheral taking seed. Once the entire investment is utilised the assets should be cash positive in terms of income versus debt liability servicing. Once this happens, then they look for further funding to start the cycle again.

    The businesses chosen for BBP and BBW (not so into BBI to comment) are high demand power infrastructure in markets of certain growth, so I feel that these 2 in particular are quite sound businesses.

    I suppose the biggest threat would be that they are financing dividend returns from debt which is the first thing that is going to suffer if the income balance is not met.

    I am also led to believe (again, correct me if I am wrong) that the loans secured for the asset purchases are at a fixed interest rate for the period of the project.
     
  13. agro

    agro

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    I expect a bounce from BBW - going by the chart and previous history, prices are trading at August 07 levels

    today shows a strong iap

    with financial results end of feb and future concern for greenhouse this one is a keeper imo?

    also not to mention uhat utitlities often are a safe haven in times of a bear market..

    thoughts
     
  14. roland

    roland

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    There are many that are expecting some good things from BBW/BBP - all broker guidances I have seen show a strong buy.

    AEGIS have a 12 month target of $2.02 as at 29 Nov 2008 with the following comments:

    Investment Opinion
    We view BBW as a balanced investment, with solid income and growth prospects. We like the stock's strong development prospects; however, these come with inherent risks in constructing to specification, cost and schedule. BBW's management fees are high, yet comparable to those of its listed broader utilities peer group. BBW’s association with BNB should ensure a long-term pipeline of future deals.

    BBW's outlook is for strong cash flow generation derived from its assets and development projects, which should deliver solid distribution growth over the medium term. BBW's growing portfolio of operational wind farms and the potential acquisition of the two new wind farm assets will provide scale and diversification benefits, reducing the impact of operational variances. We have a positive short-term investment view.


    Earnings Outlook
    Management's guidance for its distribution growth target was for at least 3.5% over medium term. We continue to expect strong EBITDA growth over the medium term and for distributions to be covered by the company's maintainable cash flows. Integrating the recently acquired wind farms sees our depreciation and net interest costs rise but we believe BBW will be able to sustain its healthy distributions. BBW reconfirmed its distribution guidance for and FY08 of 14.5cps.


    Not to mention that at the current SP ($1.35), dividend works out to be 9.9% before tax

    I'm holding - my plans for BBW are definately long term, it now makes up part of my future regular income.
     
  15. Danielson

    Danielson

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    Hello, this may be a very silly question but does anyone know how BBW's dividend payments per share are substantially higher than the earnings per share. Does this mean that the dividend is being funded mostly from debt? Are they trying to make the share look more attractive? I'm stumped..
     
  16. roland

    roland

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    Nice high profile bit of news for BBW:

    BBW PREFERRED TENDERER FOR SYDNEY WATER DESALINATION PLANT

    Babcock & Brown Wind Partners (ASX: BBW) advises that it has been selected as the preferred tenderer to meet the renewable energy requirements of Sydney Water’s desalination plant.

    BBW proposes to provide output from the Capital wind farm to deliver these requirements. The Capital wind farm is located near Bungendore in New South Wales, Australia, and is currently under construction. The wind farm is expected to be operational by mid-2009 and is expected to have an installed capacity of 132.3MW, and an expected long term mean energy production of over 400GWh per annum.

    Negotiations between Sydney Water and BBW are currently proceeding, with contracts expected to be signed shortly.
     
  17. roland

    roland

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    Yahoo! - made it to ex div day with all parcels in profit. Unlike the absolute mess I made with BBP :banghead:

    If the SP holds tomorrow, I'll use that as a chance to reduce my exposure.

    The expectations from Aegis and Comsec are still very positive with both BBW and BBI - but anything with the Babcock name has been temporarily tainted, warranted or not.
     
  18. goldmandane

    goldmandane

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    Why it down sop much today, i dont see this news as bad??......

    just filling space here with charachters so disregard this line
     
  19. roland

    roland

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    Well, I am not sure what prompted the SP drop to $1.54 on Wednesday, but I picked up some anyway.

    I came across this from the Comsec website - since I don't buy newspapers ..


    sort of doesn't make a lot of sense - but doesn't sound overly negative.


    The Comsec earnings forecast suffered a corresponding drop from said website - as per the little bar graph.
     

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  20. roland

    roland

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    Well, I'm pretty happy with the after market news with BBW securing the power for the Sydney Desal Plant - it was always on the cards, but now it's official:

     
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