CNP's main problem has been insolvency. When the new transaction is announced (sale of partial assets or debt restructuring and equity investment) the scene changes. Whilst CNP has negative equity, it is also because its syndicated business which will earn cash flows of multiple millions of dollars over several years have been valued at nil. Property valuations are also conservative as they are at distressed prices. If CNPs assets are not on the market the US and Australian Reit valuation scene changes. It is not possible to build shoppping centres at the current market values anymore. Construction costs have gone through the roof.
If after the announcement the insolvency risk is gone, the SP will go back to $1 quickly, perhaps on open.
Good luck to all holders who have suffered a lot for 2.5 years. I see a new dawn on the horizon.
Brainybull
CNP Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
