BBI 0.00% $3.98 babcock & brown infrastructure group

today's australian article

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    As good as Michael Stevens article was at clarifying the differentiation in BBI/BBW from BNB you still have to wonder who the Business Editor at The Asutralian is.

    In the very same newspaper on the very same day we have some ill-informed fool named Scott Murdoch collecting a wage for writing rubbish. Murdoch's article on the death throes of Babcock & Brown, the investment bank contains the following gem:

    "It is amazing to think that Babcock is being forced to sell parts, if not all, of Dalrymple Bay coal terminal at the potential end of a resources cycle. If it cannot make money out of an asset like Dalrymple Bay, then the outlook is indeed grim".

    And people bag anaylists for not being worth their salary? This fool has done so little homework he might just as well write that ANZ - not WBC - bought RAMS, or NAB - not CBA - bought Bank West.

    It is useless journalism. ANd above him sits an Editor who (supposedly) would have edited both articles.

    That aside, Matthew Stevens article - by contrast w- as the first one in the press in some time that made clear the separation that exists from BNB. The following statements - in the popular media - were salient:

    "GIVEN THERE IS NO CROSS COLLATORALISATION WITH BNB, THERE IS A QUITE REASONABLE CASE WHICH SAYS THE SOUNDEST OF THE SATTELITES CAN SUSTAIN COMMERCIAL LIFE AFTER THE COLLAPSE OF THE BABCOCK DEATH STAR."

    and

    "(drawing a line through the Powerco sale) THERE IS NO PARTICULAR REASON NOT TO USE THAT SORT OF METRIC AS MOST OF BBI's ASSETS ARE MONOPOLIES WITH EBITDA-TO-INTEREST COVER RANGING FROM 2.3 AND 2.5 TIMES. THOSE RATIOS WOULD HAVE TO HALVE FOR BBI TO BE IN BREACH OF COVENANTS AND THAT IS UNLIKELY"

    While BBI has its dedicated fan club here on Hot Copper, and these facts are common knowledge to most of us, the fact they have appeared in the mainstream media for the 1st time in quite awhile should not be underestimated.

    Coop


 
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