Friday, November 9, 2007

Babcock and Brown Power (BBP.AX) div yield of 9% (not bad for just turning up)


If you want a bit of safety I like Babcock and Brown Power (BBP.AX). Has a div yield of 9% (not bad for just turning up).
Very much exposed to peak electricity prices.

  • People use more electricity through Plasma TV's and A/C (these things use heaps of elec)
  • Going to be more black outs in Sydney this summer
  • Going to be hotter, more A/C used
  • These guys can charge whatever price they want cause their electricity isn't contracted. When there is a black out they can just choose what price they charge
  • There hasn't been any money spent on electricity generation in Aus in 25years, yet the population has bee growing circa 3% and we are all using more electricity


Get on board at low $3!!

-Wizz Kid

No comments: