Lrp, Centro did plan for a bull market and not alot of companies these days plan for a bear market; by reducing costs and other associated debt.
The market today focuses primarily on gearing levels and e.p.s. Why is this so? because so called commentators keep telling our nation that things are getting worse and in doing so scares away potential investors that might want to invest in companies that are currently undervalued.
People are selling their holdings because market commentators continue to spin sh#@ and over exaggerate about the underlying business performance of any given company therefore, mum and dad investors start telling everyone that the times are difficult.
Some(not all) Investors and Traders on the asx over-react to companies quarterly,half yearly and yearly results.
An example of this is if company (A) forecasts a profit downgrade of $5 million and they normally earn 500-600 million after tax the shares drop by 30-60% and if they forecast a profit upgrade the shares drop anyway.So you tell me is the market analysing company results based on its performance or based on market fear??...i.e.. everyone sell we are in a bear market(lol)You should be buying and buying more if you are a long term investor.
If a business does well, the stock should eventually follow.But it seems fear is the dominant factor in todays market.I would rather profit from folly than participate in it.
If we all change our thought patterns we wouldn't be in this mess in the first place.
But overall the underlying retail property assets and performance of the business remains strong.The problem facing Centro was the short term debt obligations not the performance of the business.
CNP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
