Business Spectator

I keep forgetting to post this, but here's a good free business media resource. Business Spectator.

Babcock and Brown - profit warning fallout

Yikes. The CEO and Chairman to go, as part of a wider review after B&B's share price took a beating following the profit warning a few days ago.

Macquarie Airports - buyback

Buybacks as a means of capital structure management: Macquaire Airports announce a buyback in conjunction with asset sales. Note that MAP's 'preferred (earnings) measure is "proportionate earnings before interest, tax, depreciation and amortisation".

Can the ASX stay a monopoly?

It's long been argued that there's no compelling reason (or even good reason) for ASX to remain a monopoly provider. Here's another; an ROE of 70% for it's latest results. Have a look at Adele Ferguson's story.

Babcock and Brown's profit warning

B&B shocks the market with a profit downgrade, only a few months after affirming previous guidance. B&B are unable to provide a precise estimate of the likely write down ("between 25 and 40% below (the previous guidance)" - and they're still in discussions with their auditors as to the extent of the write down..

One fund manager said it was "just terrible" that Babcock was producing such a wide range of possible numbers so close to the August 24 date when it had to report for the six months to June 30.

"Why now? Where have they been that they give us a range of between 25 and 40 per cent below the previous corresponding period?" he said.

"It's a month and 11 days past the book's close date for the half year number. It's pathetic."

Obvious questions will be asked about compliance with disclosure obligations.

Any impact on restrictions based around debt agreements?

Deutsche Bank said: "While non-cash impairment provisions are disappointing, we note they are excluded from calculations pertaining to the group's three times interest coverage covenant, suggesting (yesterday's) announcement is unlikely to compromise BNB's position with its bankers."