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CNP - Centro Properties Group

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Price for CNP was steady throughout the day. Just an hour before closing it went up by approx 7 % and then closed at 4% above yesterday closing. Same was the case with CER. Moreover there wasn't any notice or news :confused::confused:

Could insider information be a reason for sudden increase in SP ???? Hope this increase continues for few days.....:cool::cool:
 
the claim is now $700mil according to news (aap)..don't know if this is the reason for the price surge late in afternoon...the lawyers did say that the claim was not worth persuing if centro was going into administration, and they don't believe it will..
 
Hey, wasn't there a few bids on the table a few weeks back for 90c. I never saw a spike in share price for that, my guess is that it was all rumours, but still didn't seem to spec the share up. What are people's views on the looming court cases...
 
Obviously a lot of stories in media today about the court case. AFR raises one potential positive: that the additional security offered if the extension proceeds is even more compelling for the banks now.

In the midst of all this, an article in the age mentions indications/rumours of asset sales. Let's hope that is so and the prices received are near or better than book value.

http://business.theage.com.au/centro-keeps-quiet-but-centres-sale-is-close-20080527-2iq8.html
 
It appears that the assets they want to sell are nearly finalised and indications are a total of 2 BILLION worth has been sold at BV or above so if this is correct then expect a positive affect on the sp
 
I think the SP will take a positive trend shortly. THe court cases are ridiculous as it is a matter of shareholders/investors suing themselves basically. Where does that get you even if you win you lose!! The lawyers are taking advantage of emotionally vulnerable investors and I could see their happy faces in the newspaper today going to court with all their blessed documents to try to destroy Centro. What is the purpose of that? Just anger/revenge fuelled by the funding company and the lawyers who want to make money and build their business. Its simply unconscionable and I feel like suing the lawyers and the funding providers who are self servingly putting my investment at risk like this. Simply wrong thinking and where money is the issue there is plenty of that to be found and this is no exception. Where are the lawyer jokes??? Keep them coming ... this is lose/lose for the plaintiffs

ian2382000 said:
It appears that the assets they want to sell are nearly finalised and indications are a total of 2 BILLION worth has been sold at BV or above so if this is correct then expect a positive affect on the sp
Click to expand...
 
sale of Australia properties is not good for centro, cos these assets can generate more stable income for centro. but something good is that Centro wants to keep major shopping centers like the Glen, maybe means it hasn't given up yet. The media is sort of misleading again saying deadline for centro is this week. We all know the extention is to Dec. The reason to set those conditions and interim check point could be lenders' protection from default of centro's management during the extention period. The legal suits of course is big trouble to Centro, and this is one of the reasons we can buy cnp at current price level. It's very hard to forecast how much value gonna left for share holders in the worst case. The reason I buy cnp and cer is simply based on valuation, though so many other things could also affect the result and that's the risk. We always have the risk to lose something in our life, the only thing has no risk is that we gonna lose everything at the end :)
 
MU002 said:
sale of Australia properties is not good for centro, cos these assets can generate more stable income for centro. but something good is that Centro wants to keep major shopping centers like the Glen, maybe means it hasn't given up yet. The media is sort of misleading again saying deadline for centro is this week. We all know the extention is to Dec. The reason to set those conditions and interim check point could be lenders' protection from default of centro's management during the extention period. The legal suits of course is big trouble to Centro, and this is one of the reasons we can buy cnp at current price level. It's very hard to forecast how much value gonna left for share holders in the worst case. The reason I buy cnp and cer is simply based on valuation, though so many other things could also affect the result and that's the risk. We always have the risk to lose something in our life, the only thing has no risk is that we gonna lose everything at the end :)
Click to expand...

CNP will try to retain managements rights for as much of these assets as they can IMO. The media is a joke. Most of them report crap most of the time.:mad:
 
ian2382000 said:
It appears that the assets they want to sell are nearly finalised and indications are a total of 2 BILLION worth has been sold at BV or above so if this is correct then expect a positive affect on the sp
Click to expand...

Is that 2 Billion fiqure based a article you read or a personal estimation? If it is a article, would you mind posting the link, just curious to see which ones have been considered sold.

much appreciated.
 
Came from another forum from person who had contacted Jones Lang."I gave some details of where the properties are located and they are being marketed (and will sell) at or above book in most cases. As I suggested yesterday, you could easily verify this yourself if you used the right approach. Fairfax obviously took up the suggestion. You will see that some of the properties are co-owned with CER so the sale of the whole property will be an uplift on CER as well.

Jones Lang are running the operation centrally in coordination with Centro HQ in Melbourne and assistance from various state offices" extract from message. Have not read earlier message for the breakdown.
 
something else this same person said which can be confirmed "On a final note, it's also worth pointing out that a) Rents on the Centro US assets are NOT based on turnover in the individual stores (unlike Westfield) which means that rental will not decrease if store sales decrease, unless the lease is terminated b) Centro smartly built in annual rent rises to their lease agreements which will go part-way to countering any decrease in the valuation of their properties.

I recommend listening to the annual report webcast from Andrew Scott and the team on 9th August 2007 (my birthday) to get a feel for some of the strategic elements in the portfolio, most of which have been overshadowed by the current woes. Whilst an awful lot has changed, a lot still remains the same." which shows that there could be good value in the US assets and not to write them off as some have
 
2 more days for CNP share holders to know where we stand? there may be few things happening in the next couple of days:

- ann. about the 30/5 terms/conditions for the extension to Dec/2008.
- ann. regarding the assets for sales or any discussion about it
- more articles regarding the lawsuits ...

CNP is on hot spot atm...

IMHO - DYOR.
 
Management Rights

It will be interesting to see how the 50/50 CNP/CER split works in sales transactions. All along Centro has stated that it would prefer to retain 50% or majority value within the tenants so that they would be able to retain management rights and profit from them. So if they have managed to hold a majority share within their sales will the proceeds be equally split between CER and CNP? With an outright buy, there is no such problem.

Boom and Bust Time

The reported sales all seem to be Australia based, Australia is still in the middle to end of the mining boom (avoiding recession) and as such will retain their estimated book value. This however presents the US problem - recession. Currently with 68% of their assets in the US - this will obviously increase with sales in OZ, leaving them very open to the effects of US recession. US housing prices are down 14% nationwide in 1 quarter! This is why Centro's price will be effected by the DOW in the coming months, the index is a measure/ indicator of US wealth and any movements will have an impact on CNP/ CER SP.

Another Month another hurdle.

Court proceedings, as if Centro haven't got enough problems all of their previous and some current major institutional investors are backing the court proceedings. Not isolating short term debt from long term debt on their books will be the key litigation point. The only good point about the court case is that it will be dragged on and on as long as Centro retains solvency, giving Centro time and unfortunately lawyers money. This will keep the SP down for time to come.
 
propergeez said:
Management Rights



Boom and Bust Time

The reported sales all seem to be Australia based, Australia is still in the middle to end of the mining boom (avoiding recession) and as such will retain their estimated book value. This however presents the US problem - recession. Currently with 68% of their assets in the US - this will obviously increase with sales in OZ, leaving them very open to the effects of US recession. US housing prices are down 14% nationwide in 1 quarter! This is why Centro's price will be effected by the DOW in the coming months, the index is a measure/ indicator of US wealth and any movements will have an impact on CNP/ CER SP.

I didn't think it was 14% in one quarter. I thought it was a comparison of housing prices for first quarter 2008 compared to first quarter 2007. So its a 12 month change rather than a one quarter change.
Click to expand...
 
tulasi74 said:
propergeez said:
I didn't think it was 14% in one quarter. I thought it was a comparison of housing prices for first quarter 2008 compared to first quarter 2007. So its a 12 month change rather than a one quarter change.
Click to expand...

Heres an excerpt from Yahoo finance:

http://biz.yahoo.com/ap/080527/economy.html?.v=5

"U.S. home prices dropped at the sharpest rate in two decades during the first quarter, the Standard & Poor's/Case-Shiller national index showed Tuesday, a somber indication that the housing slump continues to deepen.

Prices tumbled more than 14 percent during the quarter and are at levels not seen since the third quarter of 2004. While the index is still up 60 percent from 2000, millions of homeowners who bought in the past four years with little or no money down now owe more than their homes are worth."

I suppose it could be QOQ, but it does say during Q instead of during Y. If it is QOQ it was written VERY badly. Will have a dig.
Click to expand...
 
centro already has an offer on the caf(centro america fund),and will be decided upon by 7june..bv 1bil..
 
gensis1 said:
centro already has an offer on the caf(centro america fund),and will be decided upon by 7june..bv 1bil..
Click to expand...

Does that mean they are selling their 50% at $1B, or their institutional investors are also selling which means they will get $500M. First way is above book value, second is way below!
 

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