CNP a strong buy at these levels.The situation we have here is a...

CNP a strong buy at these levels.

The situation we have here is a lot of people without much of a clue, all getting themselves in a panic.

This is nothing like RAMS. Centro just have to reduce the gearing a bit, and the business model is sound.

Equity raising / placement is the natural solution. All that super money, sovereign wealth funds, looking for a home. Investment banks will be jostling for the right to get a capital raising off the ground.

Hell, call Warren Buffett, he's always noting the huge piles of cash to manage and no investment opportunities. Steady long-term income producers like Centro are bread and butter.

Think about it. If you get caught short in your own household finances with a very short term problem, and you find your credit card is not working. What do you do?

Do you start panic selling your possessions for cents in the dollar? Or do you hit up dad or big brother for a loan to tide you over?

The market will continue to have an issue with the complexity of the company structure. So let's not expect it to return to previous highs in a hurry. But equally, let's not expect an insolvency or a cents in the dollar selloff, either.