BNB babcock & brown limited

long article worth a read, page-2

  1. 24 Posts.
    "For its part, Babcock however shelled out $1 billion last year at the top of the market for US real estate then casually booked a $100 million revaluation to profit even though property prices were dropping in the US and Europe.

    More interesting is Note 30 on interest bearing liabilities, buried deep in the bowels of the accounts. Current liabilities - usually more visible in the balance sheet - stand at $2.9 billion. That would suggest $2.9 billion in debt needs to be rolled this year.

    On top of that, operating cashflow was $507 million in the red (up from just negative $76 million), total liabilities stood at $13.1 billion while the finance bill was a hefty $662 million. On those numbers things are starting to look positively Allconian - although the structures are simpler with less cross-collateralisation."

    Thats pretty important to note, I wonder why no one else has made an issue of the quality of the earnings? Or the hidden debt in BNB?

    If this is actually correct, the SP could take a big hit the next few days, even spill over to MQG (by associationg given the markets fear these days).

    I'm wondering how accurate it may be.....
 
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