Hi blargboy, must admit that has been the problem in the past although the SP retreat in the past has been on lesser news. Once we see some major asset sales and debt reduction CNP should be in a position to again begin the divi payments which is where the real money will be made on CNP.
Now that will take some time and quite a few more asset sales than those we are waiting for of course and will depend of course on whether asset sales are near/at book value etc. But if CNP does begin to reduce its leverage it should start attracting a lot more interest than it is now particularly as it would mean the company becomes more profitable.
In my mind if we do see some decent asset sales it should get some of the big boys looking a lot more closely at CNP. Mainly as even a divi at half the amount it used to be would make current SP a joke. So I wouldn’t assume SP would automatically retreat on news of asset sales.
I guess as I said it will come down to how much they can raise and therefore reduce debt and at what level asset sales are achieved. But if they do achieve a good result it should start making people realize the real potential that CNP has. Time will tell but for my money CNP seems to be a good bet. Good luck to holders.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
