Hey octain, If cer sells their super llc interest to cnp all this means is a transfer of super llc assets from cer to cnp for an equivalent of the current 28cents n.t.a exposure... A win win for both as cnp receives another income stream to pay down debt thus keeping bankers happy and in turn reduce their lvr in the long run where as cer can just reduce their debt exposure via super llc with this transaction and also reducing their group gearing. Complicated structure but both companies can work together 2 complete this process. Another option is to sell both the groups interest to an outside player.
I'm happy with the ban on short selling because now we can only profit from an upward movement in share price.This should definitely stabilize markets in the short to medium term if this is not the case then aussie investors are back to panic mode(not good) because the market now represents a buy and hold strategy.
As our all ords have still dropped considerably.I think i might of mentioned this a few months back that if the all ords on a technical level reaches 6000 and slowly moving up and not dipping below this point we can probably then assume we are in the first stages of the next bull market.When that is i haven't a clue!!!..Short sellers will disagree but you have to realise that everyone's super is effected if the short sellers continued the way they did.With our economy being in much better shape than our peers i would say the all ords should have been around the 5500 mark with the occasional ups and down but not like the volatility we experienced over the last 6-8months.
CNP Price at posting:
8.5¢ Sentiment: LT Buy Disclosure: Held
