but not a rich man as i didn't buy a sh1tload...i was hoping people here would advise me one way or the other but as they didn't i erred to the side of caution
but not a rich man as i didn't buy a sh1tload...i was hoping people here would advise me one way or the other but as they didn't i erred to the side of caution
I'm out at $2.30 and still buying BEPPA at 7.4c. This MCG model is very similar to BBI. A trashed infrastructure stock with high debt. This transaction proves that quality infrastructure will attract buyers even in a GFC.
I'm out at $2.30 and still buying BEPPA at 7.4c. This MCG model is very similar to BBI. A trashed infrastructure stock with high debt. This transaction proves that quality infrastructure will attract buyers even in a GFC.
Bit surprised it hasn't gone near $2.50 as well. I'd only been holding the stock for about 3 days so I was happy to leave the 20 odd cents on the table but am a bit surprised by the amount of selling at under $2.30.
I noticed in the Scheme Implementation Arrangement document (I didn't read all 153 pages) there is a condition called Target Material Adverse Change (p.21) which basically says that, between now and 2nd court date (early June I think), the EBITDA of the target should not fall to the trigger levels.
3 months to Mar 09: below $160m
6 months to Sept 09: below $350m
12 months to Sept 10: below $700m
The 1H09 (Dec 08) EBITDA was $326m, so the $160m and $350m figures above are pretty tight. Perhaps this is why people are leaving 10% on the table?
Any comments from followers of this stock? What are the probablilities of a fall in EBITDA since Dec 08?
All other conditions seem reasonably straight forward - FIRB, court approvals (Bermuda?) and anti-trust approvals (shouldn't matter as buyer is a pension fund).
I am only new to this forum. I have a small packet of MCG shares which I bought at $5.02, back in Jan 08. Fortunately didnt buy many at all. 97 to be exact. So whatever choice I make I loose, luckily not too much. Bought these more for the long term thinking I was diversifying my portfolio....silly me. As you can tell I know nothing about shares.