The reason we are still talking about CNP is that it might survive, by diluting shareholders' value. To me it is the only out of this mess. And you have to think it is lucky that the bank would do it in this market. Remember the banks have to have enough capital to back it not whatever they want to do.
How much distributable profits can we say for divis? 20 cents per share? - give me a better idea if you have based on past performance and the future higher interest costs and etc. If CNP pull through, it might be better to value the SP using PE instead of NTA? if diluted by 10, then 20 / 10 = 2 cps, 2 x 10 (PE) = 20 cents. Then considering the risk and opportunity cost, how much should it be?
Your idea, guys?
CNP Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
