possible chinese investment, page-9

For a company such as CNP with negative asset and complex structure, why would the Chinese want to buy the company. They can buy individual property from CNP which is even cheaper and can also avoid unexpected issues.

The most practical way to bring CNP out of this troubles is to change the D/E swap percentage to 50% at most. Once the share price goes up, a capital raise to fix the issue once for all.

But the prerequiste for this to be happening is that US commercail property market must continue to recover.The future is not certain yet. For most of REITs including CER or CNP, I believe now what matters most is not the fundmental of the company but the macro economic condition.

I just bought back a small parcel of CNP. But the risk is still there. If the recovery is indeed a prolonged W or L shape, I will be very worried about the survial of CNP. But at the moment, in my opinion the rewards still outweights the risk.