Some odd posts going on here - I was actually quite heartened by...

Some odd posts going on here - I was actually quite heartened by the CNP media release and, while I would have liked to have heard some thing more concrete with respect to the progress of asset sales, the rest was quite tame and reassuring.

I was particularly pleased with the fact that the banks have placed no specific covenants on CNP with respect to eventual loan extensions and refinancing. What they want is a demonstration that CNP can lower it's gearing and transform itself into a more conservative and simplified company that can deal with the weaker US economy and general global weakness in the financial marktets in the short and medium term.

It's important to remember that CNP has a very constant revenue stream that has seen modest growth during 2007 and is unlikely to change in 2008. CNP's 1 billion loss is academic in nature because it's largely the result of aquisition and merger costs and revaluations of US properties in a softer market. CNP has clearly stated that they don't intend to sell any significant assets in the US so these losses simply dissappear when the US property market comes out of it's current dip.

Some people question the timing of CNP's recent aquisition spree but thinking about it from another perspective it will be very difficult in the next few years for companies to grow the way CNP has recently with credit availability as low as it is. CNP was lucky enough to have caught the last wave in my humble opinion. (The last of the Mohicans?)

So those who got onto CNP looking for 300% short term gains, well guess it din't happen did it. Those of us on the other hand who saw the opportunity to pick up a significant quantity of future blue chip stocks with lovely dividends yields are, like me, sleeping very well at night and couldn't care less about the current SP. What we're looking for are the signs regarding CNP's future... the big picture if you will.