Are you saying that the risk of a company is proportional to the...

Are you saying that the risk of a company is proportional to the market cap? So the lower the market cap, the lower the risk?

Does this hold for all companies or is it just the CER/CNP pair?

I thought I was across most of the big theories in finance but I've not heard this one before. Do you have anything to support the argument? If so, send me the Nobel Prize nomination forms when you get them and I'll put my paw print on the bottom in support.

Aside though, the market cap of CER is still 80% larger than CNP based on the current number of shares on issue (CNP 970m shares ~$101m MC, CER 2.2bn shares ~$183m MC).

If we were to take the post-hybrid dilution number of CNP shares though (note these won't be issued for some time), the CNP market cap would be significantly higher than CER.