cnp capital raising possibility, page-3

Kevinchiu,
The higher the SP the greater the chance. The dilution factor will be reduced if the company can raise capital to repay the loan at a better rate than the "Swap" with the banks. No doubt this was always in the mind of GR. As the SP rises it leads to the probability of less dilution and as the probability of less dilution arises so does the SP increase. Looking at it like this you can see the reason for movement in the gap for CER and CER. However as CNP's position improves so does that of CER. Still less risk with CER in my opinion and CER has a better chance of paying early dividends. Both are great stocks to hold.