valuation dates and book values, page-83

Wow I didnt think this thread would get this kind of response.

Wow I didnt think this thread would get this kind of response.

Buffet, I am not sure if it is me you were referring to when you said, “I hold CNP because I have studied the original documents on CNP not because some idiot on HC tells me they have great assets/book values”. If it was I should point out that no where did I mention their assets. I merely posted the information I did to give the people on the forum some things to look for if they wanted to try and hypothesize about asset sales and the associated effect on the company.

I agree with you totally that the most important focus point at the moment should be the company’s ability to continue to repay the interest on their funding.

I would also say that the market is strongly focused on the outcome of the ‘pending’ asset sales and there will more than likely be a strong share movement if the market perceives the outcome to be positive. If they sell down assets at 30-40% discounts to book value then I am sure people will take that as a negative sign (as it would be).

With Swaps information above on the revaluation policy of the company I would suggest that some of the US properties would have had valuations decline during the last round of valuations (dec 07) and possibly the last two rounds of valuations. This is of benefit to know and would allow people to take more of a position on whether they believe the upcoming sale/s to be struck at a significant discount to the book value (or previous value as determined by the valuation) or not. My feeling is, that if as Swap says the majority of the leases are fixed and do not revolve around turnover rents then there will be more demand for potential properties and there may not be a significant discounts. In the end there is still significant volume of money chasing decent assets that appear to be at a discount from the previous highs seen at the end of the last property upswing.

After writing all of that I am not sure I have provided any pertinent information. Potentially I merely offered a question to buffet.
Oh well.