The surprising SP movement during the past three days has drawn me to compare CER with its peers. Having invested in CNP and CER for nearly a year, I am not familiar with other property trust companies at all.
However I found other two companies have dived similarly to Centro.
VPG has come down from as high as 2.20 to 0.038 in a little over one year; MCW from 2.20 to 0.22. I knew little about them so I had a quick skip through of their recent annoncement and cannot find them in the same situation as CER, i.e. at the edge of a collapse. -- Is this right? In fact MCW will pay a divvy of 4C for this half. VPG although has cancelled the divvy but they did have a guidence of 7~~9 cps before.
It does seem that VPG has some financial difficulties but MCW has no debt due for 2009. -- as I said all these are my quick research please correct me if I am wrong.
But if these facts are right then there is no wonder CER is dumped even it is getting stablised. If a company like MCW paying 4c divvy still finish down 17% why would CER an exception, especially there is still uncertain future associated with it.And the highest SP for CER in the last two years was $2.
Of course the future of their bussinesses are something we have to consider. VPG has a lot of office and alike properties which are still on the way down? whereas Centro's business are more like grocery shopping? but MCW appears to be the same as CER?
CER Price at posting:
5.0¢ Sentiment: Hold Disclosure: Held
