critics, page-26

Buffet,
Your call that 'It is not hard to work out why the distribution is so low & what must now surely appear in CER's final accounts' is arguably incorrect, as this current economic environment allows all companies to 'do some laundry' and hold out on shareholders in the absence of any really bad news.

Upper management of all companies realise that this GFC gives them good reasons to cut workforce, lower benefits, string out trading terms and re-hire on much less favourable terms even though it may not be warranted. Why not cut a dividend to Shareholders at the same time? Everyone else is doing it. I believe this could be PART what has happend last week.

I believed last weeks announcement could have easily seen the SP shoot up above 14c because CER can be milked by CNP for every cent in the form of exceptionally large dividends paid from CER to CNP. That was my call and well, I thought the div would have been higher.

But what about this theory:

Separation of CNP and CER could be starting to occur at management level, as illustrated by this relatively low dividend? CER denying CNP cash (and keeping cash for itself) in the form of low dividends could well be a sign of this?

IMO Buffet you could have easily missed out on a SP rocketing up to 20c on a 2 or 3c dividend. That was my call and well, I thought the div would have been higher.

Perhaps this is the real sign of a beginning of separation between CER and CNP.

Thoughts anyone?