I am a holder of CPK but it must be classed as risky. Some might say its even a sell. The debt levels are a problem because of the interest that must be paid and the slow turnover in the business. Also, CPK have tried or been forced to move to full ownership in several projects and that has been paid by more debt. The property valuations have a question mark over them in the present market, and besides they must first SELL property in the RETAIL market to realize any value (Martha Cove I mean here). If the retail market contracts, and there is no doubt it is doing that, where are they left? Even when they sell, that is a long way from a profit. They need to pay off the loans, the commissions, and the development costs. Any dividends must come out too. What is there left I ask myself? With a 6c dividend it will cost them around $10m - how do they continue to fund that? And you are talking about another 3c dividend?
CPK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
