CNP - Centro Properties Group

[wilko66]

Hi Gensis,

Given the range of potential scenarios Centro currently sits in wrt CAF, the wording "A course of action will be decided over the next 30 days" gives plenty of wriggle room wrt disclosure aspects but I agree it's lax. I sent an email to Centro early last week on just that point and got a somewhat canned response. The following excerpt is the para they used to answer that specific question. It is unaltered from how I received it.

"We continue to work with various interested parties to determine the best outcome in the interests of investors. The recent financing extensions give us flexibility and time to do this. We will provide a further update as events warrant."

 

[wilko66]

I think users need to register with business spectator to view this. It's worth a read.

http://www.businessspectator.com.au/bs.nsf/Article/Centros-road-to-recovery-FN58J?OpenDocument

 

[gensis1]

I think users need to register with business spectator to view this. It's worth a read.

http://www.businessspectator.com.au/bs.nsf/Article/Centros-road-to-recovery-FN58J?OpenDocument

This article is full of "ifs"...lets not forget that apparently the offers coleman has made, is over the last four months...which tells me he wants to purchase mcs syndicates for a song or buy them back for a fraction of what he sold them for..

 

[gensis1]

Hi Gensis,

Given the range of potential scenarios Centro currently sits in wrt CAF, the wording "A course of action will be decided over the next 30 days" gives plenty of wriggle room wrt disclosure aspects but I agree it's lax. I sent an email to Centro early last week on just that point and got a somewhat canned response. The following excerpt is the para they used to answer that specific question. It is unaltered from how I received it.

"We continue to work with various interested parties to determine the best outcome in the interests of investors. The recent financing extensions give us flexibility and time to do this. We will provide a further update as events warrant."

Can someone explain why centro had the '30 days' 'course of action'deadline at all, on the may 8 ann.
was it to satisfy the banks?
was it to satisfy shareholders?
was it an offer on CAF that had a 30 day limit?

 

[wilko66]

This article is full of "ifs"...lets not forget that apparently the offers coleman has made, is over the last four months...which tells me he wants to purchase mcs syndicates for a song or buy them back for a fraction of what he sold them for..

Agree that could be the case but it could equally be interpreted more positively; however low the initial bids....and if there were several then it's fair to assume they were incremental...Centro has not jumped to take them up implying that confidence in the rescue plan/strategy from the banks, board and management remains solid.

The story still bubbles...

http://www.theaustralian.news.com.au/story/0,,23875025-25658,00.html?from=public_rss

 

[gensis1]

I guess centro's sp. has some saving grace today,comparing the news of asset sale at allco and its sp. rise from this morning at 28c to a high of 57.5c on ann.(allco had been given two 30day extensions)
It seems with the extra time centro has been given,the company now,isn't in any real hurry in selling assets,and they might be trying to negoiate an even better position on the sale program.(hence the email from centro.. wilko66..posted).I just hope they again, don't leave it to the last minute...

 

[$$Punt$$]

I guess centro's sp. has some saving grace today,comparing the news of asset sale at allco and its sp. rise from this morning at 28c to a high of 57.5c on ann.(allco had been given two 30day extensions)
It seems with the extra time centro has been given,the company now,isn't in any real hurry in selling assets,and they might be trying to negoiate an even better position on the sale program.(hence the email from centro.. wilko66..posted).I just hope they again, don't leave it to the last minute...

I hope when CNP make the announcement, it would be around 1pm trading time like Allco did today about the sale and NOT after trading closed or weekend. This will trigger massive price jump as punters like myself will jump in followed by other big players soon after announcement, no time to think. Lets hope the big announcement is sooner than later. Lets also hope CNP will update the market at least once a month or better still every fortnight (wishful thinking) to keep the momentum going.

 

[wilko66]

Not much said in the following article from The Aus but doesn't really give much indication there'll be any announcement soon.

http://www.theaustralian.news.com.au/story/0,,23885710-25658,00.html?from=public_rss

 

[gensis1]

What has happened to all those so called bids/offers on centro's assets, the press was speculating about weeks and months ago..they've all failed to materialise...is it because; those bids/offers were at fire sale prices?..or..they've mostly been withdrawn,because centro aren't under any pressure at the moment to sell..or..centro has one big offer(for the group) on the table and are using that as leverage for other individual bids on assets to restructure..who knows? meanwhile sp. keeps diving on no updates...

 

[Quixis]

What has happened to all those so called bids/offers on centro's assets, the press was speculating about weeks and months ago..

Except for the one journo who we all know has a clue, that's RG, all the other "journalists" are as valuable or worthwhile to exist as t1ts on a bull.

 

[gensis1]

CNP announce zip, $0.00,zero dividens to 30 june ...yet CER get $0.014/share to 30june...how fair is that....CER rose to 41.5c on ann. lets hope value is preserved on CNP when and if they restructure...

 

[nioka]

CNP announce zip, $0.00,zero dividens to 30 june ...yet CER get $0.014/share to 30june...how fair is that....CER rose to 41.5c on ann. lets hope value is preserved on CNP when and if they restructure...

Under CER's constitution all profit must be distributed. Remember that the banks are major holders as is CNP. Most of that dividend will end up with the banks one way or another and is one of the reasons both CER and CNP are still operating. It is because CNP and CER are still operating profitably that they have been able to refinance. CNP's dividend for me will be when the SP reaches my target price of 60c and the bigger the dividend that CER can pay then the sooner it will get there. I'm happy with "zip" dividend. I just want to see some debt repayments.

 

[gensis1]

Under CER's constitution all profit must be distributed. Remember that the banks are major holders as is CNP. Most of that dividend will end up with the banks one way or another and is one of the reasons both CER and CNP are still operating. It is because CNP and CER are still operating profitably that they have been able to refinance. CNP's dividend for me will be when the SP reaches my target price of 60c and the bigger the dividend that CER can pay then the sooner it will get there. I'm happy with "zip" dividend. I just want to see some debt repayments.

Ok..CNP must also distribute all profit,according to their constitution,but CNP have taken the majority blow of the extra fees/charges/costs of refinancing/restructuring..and at the end of the day this has impacted the sp. (CNP fall on ann.)(CER rise on ann.)If CNP had announced a dividend i'm sure the sp. would have been closer to your target price than where they're at now...How can we be sure that the restructure on sale of assets won't favour CER over CNP..?

 

[$$Punt$$]

Fuming mad.....watch CNP SP go south while CER go up with latest announcement. Thought for a sec that SP will skyrocket when CNP stock suspended for announcement but instead more negative news. 2moro news headlines will see more negatives so expect SP to dive and thannks to brilliant journa.

 

[sonicwind]

Relax $$punt$$, the small CER dividend is nothing to get excited or mad about, the big picture will only change with asset sales.

Look at this from a different perspective: the chance of SP moving up tomorrow is 50% where as the chance of Centro's survival is greater than 50%, we bought CNP because of the latter.

So hold on to your investment and try to enjoy the long journey.

 

[$$Punt$$]

Thanks for your positive outlook. Actually looking at buying more CNP at this bargain price. How much worst can it get? I think its worth the gamble....high risk = high returns

 

[nioka]

Thanks for your positive outlook. Actually looking at buying more CNP at this bargain price. How much worst can it get? I think its worth the gamble....high risk = high returns

This week there probably will be a lot of sellers of CNP who will lock in tax losses before the end of the financial year. Unless those holders are all ready showing a loss!!!! and don't need any more deductions. You have to sell to realise the loss. It could get worse before it gets better.

 

[rub92me]

Thanks for your positive outlook. Actually looking at buying more CNP at this bargain price. How much worst can it get? I think its worth the gamble....high risk = high returns

No disrespect intended $$Punt$$, but the above assumption that 'high risk = high returns' is exactly why so many people get burnt in the stock market.
In my book High risk = the very real possibility and high probability that you will lose all your money, a small chance that you'll lose half of your money, a tiny chance that you won't lose anything and a miniscule chance that you'll make money.

 

[vida]

Low risk can = high returns but it may take a bit longer. The secret to good investing with high profitability is careful selection and patience, not high risk. Occasionally we can be excused for dabbling in a high risk number for the excitement and possibility of making high returns in short time, but only when we can afford a loss just in case. I have learnt this the hard harsh way

 

[$$Punt$$]

Low risk can = high returns but it may take a bit longer. The secret to good investing with high profitability is careful selection and patience, not high risk. Occasionally we can be excused for dabbling in a high risk number for the excitement and possibility of making high returns in short time, but only when we can afford a loss just in case. I have learnt this the hard harsh way

Accumulating another 100,000 CNP shares today hoping the saying is right, Buy Low and Sell High. Taking a big gamble guys! No venture No Gains, No guts No glory....sound familiar?