EBB has been punished much more than its peers in the last 12...

EBB has been punished much more than its peers in the last 12 months which is totally unjustified considering its performance and size of FUM.

Now with the diversified financial sector starts to stabilize, EBB has good reasons to do a bit catch up.


04 April, 2008 (16:00:00 AEST)

EVEREST BABCOCK & BROWN ALTERNATIVE INV GROUP PRICE 33.7% ABOVE VOLUME WEIGHTED PRICE April 04, 2008 16:00:00 AEST

Everest Babcock & Brown Alternative Inv Group (EBB) closed unchanged at 65.0c, ending a three-day streak of rises. The price is at a premium of 33.7% to the 1-month volume weighted average price of 48.61c. Compared with the All Ordinaries Index which rose 17.9 points (or 0.3%) on the day, this represented a relative price change of -0.3%.

PRICE VOLUME DYNAMICS
Volatility: The stock traded between a two-day low of 59.50c and fifteen-day high of 67.50c. This suggests a trading opportunity between peaks and troughs.
Moving Average Price (MAP): The price to 200-day MAP ratio is 0.34, a bearish indicator. In the past 200 days this ratio has been under 0.34 twenty times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of 81.03c is lower than the 200-day MAP of $1.94, a bearish indicator. The 200-day MAP has decreased to $1.94. A decrease is another bearish indicator. In the last three months the number of falls outnumbered rises 40:17 or 2.35:1.
Relativities: Since open its percentile rank in the Australian market was 33. In the Australian market of 2,091 stocks, the stock has a 6-month relative strength of 4 indicating it is trailing 96.0% of the market.
Volume and Turnover Period: There were 150,265 shares worth $92,561 traded. The volume was 0.5 times average trading of 301,260 shares. The turnover rate in the 12 months to date was 30.01% (or a turnover period of 3 years 3 months). This average length of ownership of the stock at 3.1 times the average holding period of 1 year 33 days for stocks in the S&P/ASX 200 Index suggests a larger number of core investors, making a long-term investment safer.
% Disc to Hi and % Prem to Lo: The last price is at a discount of 83.3% to the 12-month high of $3.90 and a premium of 62.5% to the 12-month low of 40.0c.


PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 3 sectors.
The stock was unchanged at 65.0c while the Industrials Sector (rank 343;668 out of 1068) which was up 2.8 points or 0.1% to 4,962.4
and S&P/ASX 200 Financial-x-Property Trusts Index (rank 63;114 out of 171) which was down 59.3 points or 1.0% to 5,792.4

RELATIVE VALUATION INDICATORS [RVI]
Everest Babcock & Brown Alternative Inv Group vs All Ordinaries Index [All Ordinaries Index Average in Brackets]
Better than Sector Average: Year-on-year growth in EPS of 97.1% [31.1%]; rank 75 out of 436 All Ordinaries Index stocks; P/E of 9.4 [11.2]; rank 106 out of 472; Yield of 4.6% [3.6%]; rank 190 out of 417 All Ordinaries Index stocks with dividends.
Worse than Sector Average: Return on Equity of 3.9% [24.7%]; rank 892 out of 2023 All Ordinaries Index stocks; Return on Assets of 3.5% [9.9%]; rank 741 out of 2072.

SHAREHOLDER RETURNS
Trailing One Week: The stock rose three times (60% of the time), was unchanged once (20% of the time) and fell once (20% of the time). The volume was 3.4 times average trading of 1,506,300 shares. The value of $1,000 invested a week ago is $1,226 [vs $1,049 for the All Ordinaries Index], for a capital gain of $226.
Trailing One Month: The stock fell twelve times (57% of the time), rose seven times (33% of the time) and was unchanged twice (10% of the time). The volume was 1.8 times average trading of 6,627,720 shares. The value of $1,000 invested a month ago is $867 [vs $1,036 for the All Ordinaries Index], for a capital loss of $133.
Trailing One Year: The value of $1,000 invested one year ago is $182 [vs $966 for the All Ordinaries Index], including a capital loss of $821 and dividend reinvested of $2. The total return to shareholders for 1 year is -81.8%.

FINANCIALS
Half Yearly Report released on August 21, 2007; year-on-year comparisons with previous corresponding period:
In the half year to June 30, 2007 total revenue was up 125,300.0% to $238,260; net profit growth 428.7% to $82,110; eps was up 26.9% to 3.30c.

Annual Report for the year ended December 31, 2006 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: total revenue up 93,313.6% to $A20.6m ($US16.2m); net profit growth 344.1% to $A9.4m ($US7.4m); EPS growth 97.1% to $A0.1 (5.4c); trailing 12 months dividend up 80.0% to $A0.1 (5.0c); percentage of shares held by top 20 shareholders up 29.9% to 90.99.
Unfavourable Changes: total liabilities to operating cash flow up 3,405.6% to 2.2: this compares favourably with Joseph Piotroski benchmark of 4; total liabilities to total assets up 6,839.9% to 0.1; current ratio down 88.3% to 1.9; NTA per share down 97.3% to $A0.0 (1.4c); total number of shares outstanding up 274.4% to 224,664,708.
Major Common Size Ratios: intangibles to total assets at 89.0%; total current assets to total assets up from 2.2% to 9.6%; cash to total assets up from 2.1% to 2.4%; fixed assets to total assets at 0.5%; profit before tax to revenues down from 9,622.7% to 65.8%; profit after tax to revenues down from 9,622.7% to 45.7%; amortisation to revenues of 5.3%; depreciation to revenues of 0.4%; tax expenses to revenues of -20.0%.

FUNDAMENTALS
Earnings: The earnings yield of 10.6% is 1.8 times the 10-year bond yield of 6.0%.
P/E: The trailing twelve months P/E is 9.4 times, giving it a percentile rank of 77.5 by P/E. It therefore represents better value than 77.5% of other Australian stocks with earnings (rank 106 out of 472).
EPS growth: The implied future growth rate of earnings per share required to justify the current Price Earnings Multiple of 9.4 on trailing twelve months is 2.2%, based on a formula devised by Benjamin Graham. This is lower than the year-on-year growth rate in eps of 97.1%, suggesting the stock may be undervalued.
P/S: The price/sales ratio is 7.1.
Price to NTA: The price to net tangible asset backing per share is 36.8.
Dividend Yield: The company paid a dividend of 3.0c in the last 12 months. The dividend yield of 4.6% on a 91.3% payout ratio compares favourably with the Total Australian Market average of 3.5% and has a percentile rank of 54.4 in the Total Australian Market. This means that when ranked by dividend yield it represents better value than 54.4% of other Australian stocks with dividends (rank 190 out of 417).
Investment Return: The nominal investment return, defined by the sum of 4.6% yield and 97.1% earnings growth, is 101.8%. After allowing for inflation of 3.0% the real investment return is 98.8%. The nominal investment return divided by the average P/E is a multiple of 10.8, which compares favourably with the benchmark of 2.

ISSUED CAPITAL
Based on 251,442,316 issued shares the market capitalisation is $163 million.

ACTIVITIES
Everest Babcock & Brown Limited owns 100% of Everest Capital Limited, one of Australia's leading investment managers of absolute return funds.

BUSINESS NEWS ROUND UP
The last 5 snippets from News Bites were:
March 14: EB&B Alternative Investment February NTA
Everest Babcock & Brown Alternative Investment Trust monthly net tangible asset backing as at February 29, 2008 was $3.93 per unit.

January 22: Everest Babcock & Brown expects 20% earnings rise to $30m
Everest Babcock and Brown Ltd expects a 20 percent increase in full year earnings to around $30 million, based on unaudited accounts to December 31, 2007, compared to $24.9 million previously. Everest attributed its result to a 49 percent increase in assets under management driven by its May 2007 EBI capital raising, the launch of new fund initiatives, and the performance of existing funds.

January 15: EB&B Alternative Investment appoints head of corporate development
Everest Babcock & Brown Alternative Investment Group appointed Gary Kalmin as head of corporate development and strategy on January 15, 2008. Mr.Kalmin was director and head of origination for Challenger Financial Services Group.

December 19: Harsit Holdings buys 2.6m Everest Babcock shares

December 07: Everest Babcock & Brown director buys 87k shares
Everest Babcock & Brown Ltd director Jeremy Reid indirectly bought 87,249 shares worth $140,983 on-market between December 4 and 5 and holds 44,984,215 shares.

Currency Conversion: Australian Dollar AUD 1 = US$ 0.9127 [or US$1=AUD 1.1]; Against the US$ the AUD increased 34.08 basis points (or 0.3%) for the day; weakened 0.5% for the week; declined 1.8% for the month; surged 19.4% for the year.


Source: www.BuySellTips.com