Lakshmi, My views are not determined by whether or not I own a share. Simple fact is ASX announcement yesterday refered to a potential 90% dilution for CNP shareholders. If CNP had gained a straight forward extension with no dilution, I would have been waiting for a buy opportunity going forward based on their huge undervaluation relative to their assets. Given a 90% dilution to existing shareholders, I now don't see any huge undervaluation in CNP, in fact I think there will be very little upside & more likely downside once this information really sinks in & the traders sell out & move on. I have expressed my views on dilution for several months,(refer previous posts) yesterday's announcement just confirmed the fact. For several months I was the only poster on the CNP expressing concern about the impact of a potential huge dilution, which has now become reality. As a shareholder you now have to live with the situation or move on, as I did recently. Only a foolish investor would hang onto CNP thinking they will get their original investment back sometime time down the track i.e. someone who paid over 50 cents. Different story for someone who paid may be 10 cents, it may well at some stage bounce to that level again. In this current market I can buy companies selling for below cash asset backing & yet still operate cashflow positive businesses, so CNP has a difficult job appealing to value investors, when the current board is happy to see current shareholders have their curent holdings slashed to 10%, with the other 90% now going to lenders. Lenders have struck a get deal for themselves, not shareholders. Regards Buffett
CNP Price at posting:
8.6¢ Sentiment: None Disclosure: Not Held
