re: Ann: CER Chairman and CEO Presentations A...
After attending the meeting today I came away a lot more upbeat about the prospects of the business.
Here is why:
1) After questioning; management re-affirm that nothing is binding on any sale.
2) The announced process is to me is a value searching event and reading between the lines it may be with the intended purpose of showing the lender group what value they really have, rather than what is written as book value. This may result in some larger write-ups in property values than would be expected. Comments were that they have "very keen interest at this stage."
3) Their is a lot of work going on to untangle the two Centro's (not easy stuff)
4) Management seem to be aware that we are at the bottom of the asset cycle.
While I agree 80% is high and lenders are getting frustrated with the restructure I think CER may come out of this a better positioned business trading closer to their NTA after some possible sales.
DYOR
For this reason I see this as a buy now from a hold.
CER Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
