Damn. Looks like the word is out on CER then. Why can't the Swiss just take their usual stance on things and remain neutral?
Month-to-date, the institutional brokers ABN, Morgan Stanley, Deutsche and (paper-thin Chinese walls) Credit Suisse have dominated the buying in CER which indicates to me a renewed interest in the stock. Some of this interest would have come about as a result of the cross-defaults on the Centro debt almost out of the way.
Guess who was silly enough to sell CER stock to the instos? Comsec clients of course. Presumably those who were spooked at the SP drop post-ann.
CER has less potential for upside that CNP but it also presents less risk. With NTA of $1.65 (vs current share price of 37.5c) we'd have to have a series of absolute disasters to wipe out all of the shareholder equity in this stock. Even in Super LLC goes belly up (which is unlikely), there is still around $1 NTA left.
There is also a belief that in order for CNP to get much-needed cash, CER will have to start paying dividends at some point soon. If CER announce a dividend in one of the next two periods, it'll fly.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
