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BBW - Babcock & Brown Wind Partners Group

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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
 

Porper

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stockmaster said:
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

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.
 
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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 :)
 

chops_a_must

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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.
 

chops_a_must

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

chops_a_must

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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:

20 June 2007
ESTIMATED DISTRIBUTION FOR THE HALF YEAR ENDING 30 JUNE 2007
Babcock & Brown Wind Partners (ASX: BBW) announces an estimated distribution for the half year ending 30 June 2007 of 6.25 cents per stapled security.
This distribution will be the final distribution for the year ending 30 June 2007. This means that the total distributions for the year ending 30 June 2007 are expected to be 12.5 cents per stapled security, in line with previous distribution guidance.
The final distribution is expected to be fully tax deferred. The tax components of the interim and final distributions for the year ending 30 June 2007 will be provided to security holders in the annual Taxation Statement Guide to be provided to security holders together with payment of the final distribution in September 2007.
Timetable
Key dates relating to the final distribution are as follows:

BBW will trade cum-distribution until close of business on Friday, 22 June 2007, and will be quoted ex-distribution from Monday, 25 June 2007.

The Record Date for entitlement to the final distribution will be Friday, 29 June 2007.

The actual final distribution will be confirmed following the announcement of BBW’s full year financial results on or about 27 August 2007.

The payment of the final distribution is expected to occur on or about 14 September 2007.
Distribution Reinvestment Plan
BBW’s Distribution Reinvestment Plan (“DRP”) will be in operation for the 30 June 2007 final distribution.
Stapled securities issued under the DRP will be issued at a discount of 2.5% to the weighted average price for BBW stapled securities sold on the ASX over the 10 trading days ending on the trading day which is 3 trading days before the date that the securities are to be allotted under the DRP.
The stapled securities issued under the DRP are expected to be issued on or about 14 September 2007. Copies of the terms and conditions of the DRP can be obtained from BBW’s website at www.bbwindpartners.com
Notices in relation to participation in the DRP must be lodged with BBW’s security registry, Link Market Services, by 5pm (Sydney time) on the Record Date of 29 June 2007. If security holders have previously notified the registry regarding their election to participate in the DRP and do not wish to change their instructions previously specified, no further notice to the registry is required.
ENDS
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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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?
 
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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.
 
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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?
 
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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.
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:
 
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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?
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.
 
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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
 
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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
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.
 
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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..
 
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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.
 
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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.
 
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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
 
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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 ..

Date: 2/7/2008
Author: Danny John
Source: The Sydney Morning Herald --- Page: 27
Babcock & Brown Wind Partners (BBW) has acquired another four wind farms in Germany. BBW, the wind power fund of Australian investment bank and fund manager Babcock & Brown, has made the purchases as it prepares to sell its European energy business. The German wind farms were purchased as part of a long-standing deal with one of its wind farm developers. BBW noted the deal allows it to buythe new farms at a lower than normal price. BBW is selling the European assets to try to support its market capitalisation, which is currently below the book value of its assets. Its deals with German wind farm developers Gamesa Energiaand Plambeck Neue Energien will allow it to quickly restore a large portion ofits European operations

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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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:

ASX Release
28 July 2008
BBW SIGNS SUPPLY AGREEMENT FOR SYDNEY WATER DESALINATION PLANT

Babcock & Brown Wind Partners (ASX: BBW) advises that it has entered into a renewable energy supply agreement with Sydney Water, with output from the Capital wind farm contracted to deliver the renewable energy requirements of Sydney Water’s desalination plant.

The renewable energy supply agreement has a term of 20 years and includes a CPI escalation clause.

The Capital wind farm is the first large, utility scale wind farm to be located in New South Wales. The wind farm is expected to be operational by mid-2009 and have an installed capacity of 132.3MW with long term mean energy production of over 400GWh per annum.

Miles George, Chief Executive Officer said “The supply agreement represents an attractive contract for BBW and we are very pleased to be supplying the renewable energy requirements of Sydney Water’s desalination plant. As Australia’s leading wind farm owner and operator, BBW remains well positioned to participate in the expected strong growth in renewable energy generation in Australia which is underpinned by the Federal Governments 20% by 2020 national renewable energy target.”
 
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