Hank's Trading account

[10 bagger]

As I have been gone for quite a while let me bring all up to my thoughts on BBWPF.pk,, BBW.AX..
The chart below indicates the rapid fall in the value of the Australian Dollar in comparison to US Funds.. While not an excuse for the fall of BBWPF,, it was the main contributor to the drop in share prices.. The fall in Australian Dollar values was further than an I have ever seen in all my investing years in a developed country..

http://ichart.finance.yahoo.com/3m?audusd=x

The value of the shares of BBWPF will always come into question because of the manager of this trust and it's ability to raise capitol needed to complete projects that remain on the drawing board.. But I believe that now is not the time to make sales and any shares that can be purchased below $0.90 Australian should be bought on a scale.. The Australian Dollar will not dissapear and although BBWPF has a lot of unfinished projects it is still the 3'rd largest wind farm operator in the US..


Posted by: 10 bagger Date: Friday, August 22, 2008 4:12:41 AM
In reply to: A deleted message Post # of 107749

BBWPF,, BBW.ax... updated

The article and e-mail below has been posted on my trading board for quite a while..

The sale price of BBWPF assets is far less than the prices talked about 6 Mo's ago.. It appears the danger is that in order to clean up it's own mess B & B must sell assets of some of it's funds that it partners with.. It's fiduciary resp. have seemed to go out the window.. The Infrastructure Fund seems to be the problem because of B & B's inability to continue it's buildout of powerplants and other high capitol intensive plans.. As it's loans are mostly non recourse the willingness of banks to continue advancing funds has come to an halt.. BBWPF has several other projects in the works and not only need funding to complete but need tax credits and funds from the communities and countries where they are being built.. If these projects go dormant I don't know what obligation the communities or gov.. have in thier continued completion thru another company.. If these credits do not pass the value of the projects would be gresatly reduced..The Spanish projects just sold were to get the Lia. off B & B books and was a distressed sale.. My first indications were for a sale that was worth 2 to 2.5 Billion above debt and it appears that in a distress sale the figure was less than 1/2 bil.. How many more projects (producing or still in buildout) does B & B sell of BBWPF to get thier Lia. down so they can continue to build out the infrastructure fund is the real question and that is why I can't figure out what BBWPF is worth.. B & B not only manages BBWPF but participates in it's projects as it does with all it's funds and BBWPF is the fund with the most readily saleable assets at present.. hank

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Tight money has doomed another overleveraged banking relationship.. the baby in this case is being thrown out with the bathwater.. I sold my 150,000 Plus shares at $1.11 because I don't have a crystal ball and as it traded as low as 0.74 USD on conversion of funds in the next few days I felt better about the sale.. Also at that time B & B had requested that it's stock be halted without any other explanation and all were calling for a management change which occured.. B & B stock opened and was again cut in half trading below $2.00 Australian,, 12% 0f it's yearly high.. If the position had been smaller or if I had not been on a boat and had kept abrest of the situation daily I might of acted sooner but the sale would still been made,, that I am sure of.. Knowing what I know today and at this price level with the S & P disclosure my gut would tell me to scale out the position.. The value of windfarms is baised upon thier scaricity and the few players that have the massive funds to build them.. This also limits thier resale value if not completed and are not able to sell on cash flow.. The bid that B & B hit was probably the only one it had and if it has to do this again,, without the benefit of 6 mos to negotiate the next sale will still be lower in my opinion.. This markdown in the value of BBWPF happened over a 4 day period so preservation of capitol became the most important thing and without any information avil other than theasked for halt in B & B stock I did what I had to.. Hopefully those that I led into BBWPF had exited earlier at a profit...

The S&P rating which is avalable on the B & B website indicates that at present B & B is funded but also shows why a fire sale of BBWPF assets were necessary.. BBWPF could be B & B's piggy bank... hank
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Posted on my trading board...

This came in recently.. This E-Mail below came in recently In responce to this article..

E.ON says looking at Babcock windfarms - magazine
Fri Apr 18, 2008 12:17pm EDT

FRANKFURT, April 18 (Reuters) - E.ON AG (EONG.DE: Quote, Profile, Research), the world's largest utility, is looking at windfarms worth as much as 4 billion euros ($6.3 billion) which Australian investment company Babcock & Brown (BNB.AX: Quote, Profile, Research) is seeking to sell, Capital magazine said on its Website, citing an E.ON manager.

"We are looking at it," said Frank Mastiaux, head of E.ON's renewables unit, referring to Babcock & Brown's possible sale of its European windfarms, the magazine reported.

An E.ON spokesman declined to comment.

Babcock & Brown said at the end of February it would consider selling its European windfarm assets and appointed Deutsche Bank (DBKGn.DE: Quote, Profile, Research) and JPMorgan Chase (JPM.N: Quote, Profile, Research) to run the sale.

Capital magazine said the windfarms are worth 3 to 4 billion euros, but did not say how it arrived at that valuation. (Reporting by Peter Dinkloh; Editing by David Holmes)



Dear Hank,

Received your telephone message - I was on another call at the time.

I'm in the office this afternoon - not sure if you prefer to chat over the phone.

In terms of your question with respect to the proceeds from the potential sale of the European portfolio. We have stated that the proceeds would be used to reduce debt supporting the assets divested, fund future accretive investments in new and existing markets and make a return to securityholders where appropriate.

The European portfolio represents approximately 830MW. The Enersis portfolio (257MW representing BBW's equity interest) in Portugal is jointly owned by BBW and Babcock & Brown. Accordingly, the sale is a joint process with Babcock & Brown and the proceeds from the Enersis portfolio would represent our 50% ownership.

Hope that answers your question.

Kind regards,

Rosalie Duff
Investor Relations

Level 23 The Chifley Tower · 2 Chifley Square · Sydney NSW
T [phone] · F [phone] · D [phone]
www.bbwindpartners.com

Annual Report...
http://www.bbwindpartners.com/media/302290/bbw_annual_report_07_web.pdf





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