CER 0.00% 32.0¢ centro retail group

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  1. 18,330 Posts.
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    "Does any body have any idea why Centro Properties (CNP) is still falling before (CER and CNP) moved together in the same direction like twins, any explanation would be appreciated"

    There has never been any sound reason why CNP was worth more than CER since the GFC. I have continually made this point simply on NTA. CNP has had negative NTA whereas CER has had positive NTA. In addition the refinancing of both meant that CNP faced massive share dilution because of the debt for equity arrangement whereas CER had no such need in its refinancing terms.

    Another reason associated with NTA is the fact that CER has a larger percentage of its assets as physical real estate ownership than does CNP.

    In pointing out these facts I have been asked,on this forum, "why do I hate CNP". It is not hate, it is cold hard financial facts. The fundamentals are heavily weighted in favour of CER. Remember that CNP could fail completely without CER being in too much trouble. We may just end up with a new major shareholder.

    The simple answer probably is because CER is worth more than CNP. There is no doubt about that in my mind.
 
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