Good post. However it doesn't include intangibles. See quote below from GR's KGB interrogation. GR values it 1.7b and KPMG had valued it earlier at 5.5b. Even if you consider 1.7b it increases sp value by approx. $2.00 There is quite a bit of upside as long as Centro survives. And survival chances are are 95%.
Quote from KGB Interrogation.
"GR: That’s exactly right. It’s over and above. Now, in our balance sheet we have extracted the management business from the $1.30 but we also have an intangible number. The intangible number is goodwill and it’s about $1.7 billion as of December.
RG: Is that realistic or is it worth more than that?
GR: On February 29 we had our call to the market, where we introduced the December numbers and question came out about the value of the business. In order to establish the value of the intangibles on the balance sheet from an accounting standpoint, the company has to give an indication of what it believes the value of the services business is. We did give you that indication and we announced on February 29 that the company thought it was about $3 billion. And that was down substantially. If you remember well before I got here, there was an outside valuation done of KPMG, I believe in early 2007 or late 2006 of $5.5 billion."
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
