No-one's really posted a counter-argument to your calculations except perhaps swap shortly after his return, because your calculations are probably correct.
In fairness you have (relentlessly) hammered away at this point and it's probably not getting the acknowledgement it deserves.
But, again in fairness, don't you think that if this went ahead, albeit with enormous dilution, that the share price would essentially automatically return to a trading price of around NTA? An NTA that factors in the dilution of course. And in addition, the diluted value of the services/management business? Even if they convert at 5 cents, that is their boon, but CNP is priced for risk at present? What's fair value when that risk is removed?
I price point CNP post any D2E to be around 50-60 cents, less some factoring for a trashy economic climate. Others seem to be on or around that too from memory.
On that basis, based on my individual purchase price, this represents a reasonably return particularly in light of the fact that it's this or zero.
Appreciate your comments and feedback.
CNP Price at posting:
6.7¢ Sentiment: None Disclosure: Held
