Awww.. bowled Warner!Very good analysis. Thank you.What we...

Awww.. bowled Warner!

Very good analysis. Thank you.

What we really have on this forum is a lot of crosstalk between different investing styles. One group is guys with 6 month horizons or even 2 to 3 years. They're banging heads with the other group, the "5 minute chart" guys.

To monitor further downside, we should keep an eye on the margin lending situation. Hopefully no other lenders reduce their rating for CNP or pull it altogether:
http://www.infochoice.com.au/investment/marginlending/compare/lvrlookup.asp

I'm amazed people are still talking about fire sales of CNP assets. Why not an equity injection? Debt is not that easy to come by right now... but there's still plenty of equity washing around the system.

Get in touch with:
- Singapore
- Norway
- China
- The Gulf States
- Warren Buffett
- The Oz future fund
- All the major instos

Seriously, you think they can't find a lazy 3 billion for some blue chip assets at bargain prices? Just put a syndicate together to recapitalise it right into the top tier of the structure (CNP).

I would not take it as given that the USA and USA assets are cactus. There are indications that the ship is turning around slowly. US exports are increasing due to the lower exchange rate. The sheep go on repeating what they see in the rear view mirror, and not looking ahead. A more careful analysis suggests that US assets may be a good value buy right now (as part of a balanced portfolio).

As for the question -- "why is it trading at $1 if it's such a good stock". This is a citation of the efficient markets theory. Those who observe the markets on a daily basis would scoff at the idea that the market is anywhere close to efficient. If you really believe in efficient markets, suggest you switch off HotCopper and just buy the MSCI index, since you'd only be spinning your wheels doing anything else.