Does the mkt not realise that CER only have $1.5b in debt outstanding to US financiers which are now not due to September 2008.
In the June financials, the only item that has been understated is the ADDITIONAL $5B in assets as a result of the merger in September 2007.
Go back through the financials and announcements in the second half of 2007. Approximately $10billion in assets v $1.5b in liabilities which are now not due until September.
The half yearly will add an additional $300m in equity to the company at the very least plus another $300m in the current half year.
CER were only leveraged at 60%. THis will reduce significantly once Sep 2008 comes around. Once September comes around, the leverage will have reduced enough to allow CER to refinance much better terms on its remaining debt.
Media propaganda has destoryed the value of CER. CER management have done no better to eradicate the news vaccuum which has been filled by a scare campaign conducted by the media and some analysts.
This is the greatest buy I have ever seen.
I have not stopped buying in recent days and will continue to do so for a while yet.
Any comments?
CER Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
