The announcement yesterday indicated that basically we could be install for a dilution of our equity in the company.
It seems to be that whatever will be done to convert debt to equity or equity injections or whatever is to be done, will be done with people other than shareholders (the banks).
My question is why would they not go to the shareholders to do the capital raising (or whatever you would call it)?
As stupid as this sounds I know I would consider it. And if it were attractive enough I would probably take it up.
I can think of two reasons. The first being the bad sentiment that currently exists with CNP. I wonder whether current shareholders would want to didp into their pockets.
The other reason I can think of is that possibly many of the holders are day traders and it would not be there way of doing things to do this.
Is there any other reason?
A common theme seems to be that the banks are going to essentially take this company for nothing. They will enjoy all the upside and us shareholders will be just left sitting here and hope for at best to break even.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
