As you point out, their gearing is fine. And their abilty to service their loans is fine.
The problem is not with Centro having done anything wrong or being a bad credit risk.
The problem is with the banking system.
I do believe between now and Feb 14th the banks will sort themselves out in some form or another.
And if I were a bank I would be pleased to loan an AAA grade credit risk company like Centro the funds. With all the dodgy loans out there, having Centro as a customer would help balance and stabilise the loan book.
Maybe they will sell off a few properties along the way, but with the vultures circling they probably would not get book value for them, so thats maybe not such a good plan right now.
But just to stir the pot I'll start a rumour
This is exactly the sort of situation Warren Buffett thrives on. When a company with a sound business has temporarily fallen out of favour.
There !
That should do it.
Reckon they'll be 5 bucks by lunchtime.
ROFL
, it is with the banking system right now.
It is effecting all sorts of situations
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held