1. If the sub prime crisis did not happen, this would not have happened (now anyway). They simply would have rolled the debt over. 2. The operation of the business is still very strong. They will have some weakening of revenues as retailers close stores, but at the same time Centros rents are often lower than average so there is scope for increase rents. This will be seen in the annual report later in the month after the first full year of owning all of the US assets - particularly the services business. In addition there are developments still coming on line which will increase revenue last year and now this year(eg Bankstown, Armadale and others). 3. There are still people out their with lots of money who are willing to invest in good quality properties. 4. While they have maturing debt, most is long term and to my knowledge they have not defaulted - just could not pay off maturing debt in one go. A couple of good asset sale announcements will turn this thing around. But the market is still off over 30% so don't expect to see $6 again for years.
The share market is very strange - I always say investors are like sheep. One company I have been watching Metgasco went from 75c to 1.50c then back to 75c in a few weeks. Why? I can't figure it out.
Most of my portfolio is Centro. I intend on either going off or coming home with a big bang.
CNP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
