Don't get me wrong - I love this forum and the contents therein.........but are we instilling blind faith in something the market won't support.....
The extension is almost certainly assured - it is almost certainly just the extent of it that is the issue....
Will the SP rise dramatically as a result ? Almost certainly not...instead I believe it will rise gradually in line with the expectations that the underlying business will perform....with a gradual re-rating if you like.
I think we are all in danger - and I put myself in this category - of believing "she'll be right" because we are ahead somehow of the curve...that we somehow have some pre-ordained right to make money from CNP....
Unfortunately the market has spoken and from a DT's perspective we won't see the massive rises we all hoped for (myself included)......momentum has been sapped from the SP by the nature of the ann - it doesn't leave much space....for surprise....
Instead I believe we will see a GRADUAL re-rating of the business once it has been de-risked and the gearing levels brought down....through positive action of the sales of assets/and/or sale of equity in wholesale funds....
I am as disappointed by the ann as the rest of the forum but as they say pride comes before a fall.
I have sold 2/3 of my holding today - just instinctively - and unfortunately I think it will take a long time to get to the $1 - $1.50 levels we all hope for...
Others undoubtedly will disagree with me...but unfortunately markets don't understand blind faith...
PT
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
