> Property prices have bottomed or are a very close
My research on this was limited to a quick google news search on US commercial property prices (Australian ones are probably in a better position). We'll know more in 4-5 months when we get more half yearly figures I guess.
The 95% gearing is at current prices, so they have to rise for that gearing to fall, as Centro have stated that their positive cash flow is not enough to reduce their gearing to acceptable levels. My concern would be the need to get their gearing down via converting the hybrid equity.
Commercial property prices (not regular property prices) have definately not improved enough to revalue the company from 14c to 40c though, so it would have to be something else, whether that something else exists or not. The longer we go without seeing proof of something else, the more likely it becomes that this was purely a daytrader rally.
CNP Price at posting:
35.0¢ Sentiment: Sell Disclosure: Not Held
