Centro Properties Group (CNP):Still a risky propositionCNP has...

Centro Properties Group (CNP):
Still a risky proposition
CNP has successfully extended its debt facilities with all its lenders except one.
We will revisit our view on CNP's recapitalisation process once the outcome of the
dispute with this lender is released tomorrow. Our 12-month target is $0.28.
Source: Proview / Aegis Equities
Company Risk: Share Price Risk: Ethical Rating:
What to do (Investors):SELL
While CNP has obtained a temporary extension to its debt facilities, the business remains at the
mercy of its financiers. Further, the restructuring program is likely to involve the sale of significant
parts of the CNP business and/or a dilution due to a capital injection. Due to the high degree of
uncertainty around CNP's long-term prospects, we rate the stock a sell.
What to do (Trader): BUY
The price profile has improved significantly over the past month, with momentum indicators
improving from oversold levels and with the share price breaking above the moving averages. The
action since the March low appears constructive and a move toward resistance at 0.65 – 0.75 cents
looks imminent. We also note that despite the inherit risk in the stock it has outperformed the broader
market over the past month. If we were oblivious to risks involved, the technical outlook would
warrant a BUY recommendation. For those looking for an exit level, there should be a selling
opportunity at higher levels.