We all know a 5 month extension now is almost certain....not 100% but even the media has got in deep enough to know its 5 months minimum.
Today...I see CNP heading towards 60 cents by close...maybe a little higher.
Once confirmed though...I see NP only hitting around 75-85 as there will be a lot of manipulation trying to get CNP for less than $1.
This extension is not CNP's ticket to freedom but I seriously am thinking now CNP is very unlikely to dissappear down the track and an extension will allow asset sales / consolidation of the business to fit the leaner business model needed to survive in the credit crisis...and these guys know about the credit industry...they just had impeccably poor timing buying up (geared in doing it) US shopping centres right before the credit crisis.
Not entirely their fault...who could see it coming?
ABS did the same....many got caught out. However, of all the company's hit hard by the subprime crisis, I see CNP as the one likely to get near its old price...maybe $7 in 2 years.
Anyway....those holding and those buying today are well positioned in my opinion for a quick short term rise and those will to hold a little longer are probably going to see a multibagger providing CNP continue to sell their assets and tidy up their books.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
