Hi buttonzhu, yes you are right two assets sales won't see CNP...

Hi buttonzhu, yes you are right two assets sales won't see CNP back at 50c. The hope is now they have begun selling a few individual assets that they will have a few surprises for everyone come the May deadline.

There was a lot of interest for individual assets but originally Glenn didn't want to sell them that way. Happily they have changed strategy as seen by the news today.

I say that as it opens up the field for a lot more buyers and hence better prices potentially. I agree with you I would love to see them hold onto them but selling to reduce the higher interest payments is the best way.

For example if you had 4 properties worth $4 million with a debt of say $3 million. Lets say interest was 9% and returns were 6%. Sorry it is easier this way for me Buffet could do a real analysis I can't hehehe.

It would mean interest payments were $270,000 and income was about $240,000. Which means you are losing $30,000 holding onto them. But if you sold 3 and paid off the debt you now have one property but are making $60,000.

Alternatively you could sell two and still be ahead $30,000 a year. Now that was very simplistic and CNP won't sell all their assets but by selling they reduce their debt and increase their profit margins.

They go from a position of potentially losing money to a strong profitable company again. That's why I said assets sales will be seen as a big plus. Once this happens the Co can begin growing again.

Good luck BTW I hope your new investment is doing very well. Sorry to holders also I am not suggesting CNP is losing money just makes it easier for my very simple example...LOL.