here is my thought today

Here is some of my thought about CNP today,

As I mentioned yesterday, asset sale will not help a lot. According to today¡¦ CNP price, it further confirms my idea:

I am not a financial expert, I just do a simple maths by myself, say I have 100K cash in hand, and one house worth 1 million market value with 800K home loan.

My total asset is 100k + 1million = 1.1 million and of course 800k debt. (1)

Now I have to sell my house for some reasons, if I sell it successfully in market value 1 million, then my total asset is left 100k + 200k = 300k cash in hand (2)

So which one is better? Think about when you have to pay debts, selling properties are nearly last thing to do. In the case (1), at least I can show people that I have ability to afford
the house, even actually it is the same asset value as case (2).

Regards to CNP, it might have some better situations, e.g. keep the management right of the asset, etc. But again, it will not help a lot because they have management right now also.

If I am investors, I have to consider this is the company has to sell assets to pay debts and be very careful to jump in. Reflect to the share price, that¡¦s what happens today.

In the short term, I can not see any exciting offers will come before 30 May, shorters still control it in the next 2 weeks but I hope I am wrong ļ.

FYI

Cheers

z