the buffett report card

This is my personal summary on CNP Final Report & is not given in any way as investment advice, so please do your own research.
Positives:
1. Net cash inflow from operating activities still $106.4m. (Refer cash flow statement).
2. Directors’ reasonable grounds for debt facilities to be extended and/or refinanced.
3. The company will be able to pay its debts as and when they become payable.
4. Group’s net asset position attributable to members of $1.3billion i.e. NTA 69 cents.
5. US assets only written down by 10.1%
6. US market occupancy rate has dropped to 91.9%, even after losing several tenancies no dramatic drop in revenues, in fact sales growth for 2 major tenants Krogers/TJX
7. Australian market no sign of slight showdown of sales yet, with WA - strong, NSW - good, QLD- uneven, Vic. - metro performing well, rural weaker (petrol/drought), SA- mixed but growth.
8. Australian shop closures having minimum impact on rents i.e. Starbucks.
9. Interest expense only increased from $186.3 m to $214.6m i.e. 15.2%.
10. GR in webcast, “not pressed for discounted asset sales”.
11. Conditional sale on part of CAF for $714m US.
12. Lower interest rates & improved bank liquidity will help CNP.
13. More transparent reporting of overall model.
Negatives:
1. Advisor fees $69.9 million.
2. Certain conditions to be satisfied by 30/9/2008, which may or may not be currently met.
3. No major asset sale currently concluded.
4. Idea of Hybrid securities will probably impact on value of CNP securities through dilution.
5. Still need to keep all lenders on side regarding extensions.
Conclusion: Disappointing no major asset sale concluded & idea of hybrid securities may not be in best interests of shareholders. CNP missed early window of opportunity on major asset sales by packaging shopping centres & attempting to keep management rights. Any potential upside for CNP shareholders has been greatly reduced over the last 6 months & 30/9/2008 now becomes a key date. If 30/9/2008 conditions met situation improves significantly if sales occur prior to 31/12/2008.
Regards
Buffett
PS Holiday now over, its back to research!