Good to read certain threads by the regulars who believe in what...

Good to read certain threads by the regulars who believe in what they post many thanx to> defabster,hope2008,coppertop tweetypie,apples,quixis,buffett and the old school holders e.t.c as well as some of the new fish who contribute to cer or cnp every week for the last 6 months plus... That's why this website remains the no.1 website IMO for stock chats and investor thoughts... ....Anywayz enough of that straight down to business..

But my take on things is as follows > cer is in a much better position than cnp (balance sheet related). If u go through and closely observe both balance sheets for 2008 annual report i.e. cer and cnp you probably agree.

Now the question of cnp and the R.E status.

A question was raised via the cer webcast on centro website (Centro Retail Trust Annual Results 29 August 2008) The question being what does cer look like with out cnp and question goes on asking does cnp have to exist for cer to maintain it’s lending outside Super LLC.

Answer>> Glen Ruffrano responded by saying that firstly cnp is the R.E (responsible entity) of cer and as the R.E if it does not exist(the term he doesn't like to use) it just means another R.E comes in.So cer continues with another R.E that will run the business or it can choose to run the business as a self advised trust if it so chooses.;so there’s no direct relationship with centro and cer having to go away says Glenn.

Also dated back on 29 feb 2008 which is of some relevance is the commentary on the half yearly cer results via the businessspectator.com.au website as follows>>>>The key message Rufrano appeared to be trying to convey to Centro Retail security-holders, however, was that their part of the Centro group has some form of future regardless of what happens to its US assets. If the Super LLC can be recapitalised, there could be upside for Centro Retail shareholders.

From the presentation, it would appear Centro Retail does have an independent future but remains entangled with the reeling Centro Properties within the Super LLC. In light of that, the appointment of independent directors should occur as a matter of urgency.

So just some examples above give some indication as to the safety of cer compared to cnp; but i believe both will get that longer term extension associated with super llc mess; as cnp do an excellent job in managing the assets.

If cnp can significantly reduce their debt by acceptable asset sales and acceptable meaning not fire sale prices or possible equity injection or any other solutions then in the future (being years) cnp will be put back on the map.Keep in mind this will be a slow process but if u have a longer term view then its in your best interest to be patient rather than switching thoughts everyday i.e. looking at graphs in this environment is really meaningless whats important is the intrinsic value of the business and sp will follow.You must have a plan and stick to it if u hold cnp or cer.

Remember everbody talks about debt and gearing levels in this Bear Market, same junk day in day out "Like A Broken Record on Tv on Radio in the Car E.T.C."so to summarize I must say that Cer doesn't have near the amount of debt and short term debt requirements as cnp which makes their life that tab easier compared to that of their parent cnp.Gearing levels in cer are lower ,N.T.A is higher for cer and significant discount to current share price and on a calculation of current to medium term intrinsic value,the majority being 90% of my holdings is parked in cer and 10% cnp... This doesn't mean that i don't have an interest in cnp; this only means that I've being buying cer lately and topping up for the future as i look for value in companies and not old share price highs.i.e. It went to $10 so therefore it must be worth $10...It doesn't work like that!!! But in saying this everybody has a different way of thinking and calculating value in a business.

Both companies are undervalued but i prefer cer as they are much easier to understand and undervalued significantly in my opinion and investors/fund managers/brokers/market commentators/mum and dads will eventually follow the herd when they only work out the intrinsic value later down the track, while the share price is already moving in a nice north easterly direction and this will enable the price to meet the value whether its short term , medium term or long term...

In a nutshell both will survive and get longer term extension but my money is parked into value at the moment and as i keep repeating IMO that value lies in cer.


Cheers!!! Hang In There, Keep The Faith...