BBI 0.00% $3.98 babcock & brown infrastructure group

current liability funding question

  1. 17,154 Posts.
    lightbulb Created with Sketch. 32
    Had a little look into this to see why it was so 'low'.

    Summary:

    Est cash or net CA: Deficit of ~$450m between CA and CL.
    Est Tangible realizable asset gearing: 115%
    Est recent NTA/sh: -0.23c
    Est recent PE: -1.4
    Est forward PE: unknown.
    Est recent div/sh: 0.10c
    Est debt/equity ratio: unknown
    Est average price of 6c for 16.2% of issue traded in last 8 days.
    Est average price of 9.3c for 25.1% of issue traded in last 20 days.

    >>

    It is a bit hard to track what is going on here with asset sales but at last look around $9b assets, and just over $10b liabilities.
    Of prime concern to me is the estimated $450m gap in current assets/liabilities which represents a solvency risk unless assets can be quickly sold at much more than their debt value. Second to that is the gearing which seems quite high, even for infrastructure.

    At a market cap of ~67m, asset sales appear to be the only thing that can rescue them.

    Can anybody demonstrate how recent or future confirmed asset sales can enable the business to meet liabilities over the next year?

    It appears that the market does not believe it can survive.

    >>

    NB - Please DYOR, my research can be dated and inaccurate and I have frequently been proven far more incompetent than I believed myself to be.
    My gearing ratio is unconventional.
 
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