the point is that you could choose just about any infra and prop trust and put a sell on it 2 months back and many other stocks and right now you would be right.
the major issue that affect CEU was the TCL annoucement and the BBP issues.
as for the traffic numbers, if you look at the PDS you will find the numbers are pretty accurate, the only difference was the revenue.
so the point here is that CEU will pay a fixed distribution for the next 2 yrs, plently of time for the traffic numbers to get up to the forecasts, remember CEU said the ramp up to steady state numbers would take 15 months. the road has opened 5 months early so in effect we have a bigger head start than the PDS numbers and try hards like citibank throw sells on it.
if they were so all seeing where was the $1.15 price target when it was trading at $1.80? there was non because these analysts really dont know, they make suggestions.
with market conditions the way they are now CEU could have smashed the forecasts and it doubt they would have even gone back to $1.30 in the short term.
CEU has $300m in excess cash on its balance sheet. no matter what citibank says they will pay the div for the next 2 yrs and after that and once the road is operating under proper tolls we can let them provide price targets.
in the current market targets are useless. its all about sentiment and allows us to get good stocks at stupid prices.
CEU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
