silly thought, page-7

I have seen about three different arguments for CNP target price that all come out around 2.80 ish


technically there is the assume they will return to close to their longer term trend line from say may last year to dec. This was downward sloping as the market had already factored in weakness in that sector - so where it would be now is around 3.50 so take a dollar off due to recent circumstances - brings it to $2.50

PE ratio argument: earnings of around 40c a share so drop it to 30c a share and times by 10 to be conservative - makes it $3.00

Net Asset (after accounting for total debt) value per share: 3.8bn divided by 850m shares comes to $4.40 tangible assets from an article I read a while back comes to $2.20. But lets assume a 1.00 a share hit in net assets to give us $3.40 so lets say somewhere between $2.20 and $3.40 - lets say $2.80 to be conservative.


so as a ball park at least $2.00 - and even possibly $3.00 but above that is getting overly optimistic

But that all assumes the market is being somewhat rational and the market considers all their risks to be under control ......