tell the directors what needs to happen, page-2

"Once gearing is at an acceptable level"


It is not a foregone conclusion that asset sales will reduce gearing, they will only reduce gross debt. Assets sales reduce both the numerator and the donimator in the gearing equation, and a lot depends on how sales are executed relative to book value. An extreme scenario is that they sell everything and end up with negative net assets (certainly a distinct possibility, particularly at the CNP head stock level, where a fair bit of the so-called assets are tied up in the goodwill of the property management business, which becomes problematic when you have no properties left to manage)


"the CNP board should use any spare funds to implement a share buyback"


A ridiculous statement. By the time swallow their bitter pill, by way of a substantial loss for the 2008 FY, CNP will be left with negative retained earnings (ie accumulated losses) and zero reserves. They cannot pay dividends, therefore they cannot execute buy-backs (in fact I doubt if it complies with the Corporations' Act). They will be laughed out of town (a process which is already in it's advancd stages)



"It is very easy to allow a few key posters do all the work & research regarding CNP ... Regards Buffett"


As another poster suggested the other day, I believe you should hand your 'Buffett' username back to Hotcopper. Hotcopper should not allow people to post under the moniker of the world's most iconic investor, particularly if they are as inexperienced as you.

PS. I also considered relinquishing the 'ClarkKent moniker, but at least I leap over modestly tall buildings in my 3rd attempt.



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