todays problem, page-3

Steini, you are bang on.

This just needs a little time for the information to flow through to everyone. Analysts need time to assess the impact and tweak their models, journos need time to form opinions and the spooked short-term speculators need time to unwind their positions.

We have a lot of CER speculators on margin, T+x or in CFDs hoping to make a quick buck. They are getting stopped out or facing paper losses.. so they are bailing. The downward momentum gathers, people assume 'someone knows something', losses mount and so it goes on until we reach a support level, wherever that is. Then it bounces back. It's been happening for a while so nobody should be surprised.

Crossover will happen between CNP and CER share prices in the coming weeks. CER has taken some big steps (if you read the ann) to furthering independence and removing reliability on CNP. SuperLLC, which was weighing CER down, has been stabilised and the hedges (which were another issue) are being closed out. We will see 2 or 3 directors resign (as previously announced) and they will be replaced by new faces. I also think in time the CER entity will be renamed from something non-Centro.

I would hazard a guess that the vast majority of people speculating in CER in the last few weeks have only a basic understanding of the fundamentals. In the coming weeks and months, those that do understand CER will benefit greatly.

To quote the Oracle of Omaha, "In the short term the stock market is a voting machine, in the long term it's a weighing machine."