CNP - Centro Properties Group

[jaeyon]

If the SP rose to or even above .90 cents over the next days, would that encourage the bidders to increase their offer? Does the current SP have a bearing on the valuation made by the bidders who at present would be trying to get a super bargain seeing an opportunity with the pressure CNP is under.

I am not quite sure how it all works with valuing the company and how the low SP may weigh on that valuation. Since it has improved today does that increase the attractiveness of CNP to the bidders whereby they may increase their offer(s)?

I am not terribly well educated in finance, equities and business. Probably I should not be dabbling at all with my level of knowledge but live do & learn.

i think potential buyers of cnp (i.e. mqg if true) would have kept a keen eye on cnps share price today, however i think one of the above mentioned articles notes that when valuing a company such as cnp, it is hard to do so without taking into account the debt that it is carrying.

there is optimism yet as all centro's 8 lenders agreed to extend the deadline, and as mentioned if a company is generating positive cashflows there is still hope (whether or not it recovers to its previous share price before the credit crisis is another matter which only time will tell)

 

[Ruprect]

I dont hold here but was watching closely this afternoon - anyone care to comment on the move from 50c to 65c then back to 48-50c all within the space of 4 mins and on massive volume?

Ive not seen a major stock move so quickly with such massive volume too.

Im not into conspiracy theories, but i wouldnt mind an explanation from someone!

 

[oldblue]

You don't need to believe in any conspiracy theories to "follow" CNP's SP gyrations. A read of the last 2-3 pages of this thread shows the wide variations in assessments of CNP value and prospects/outcomes.
The end result ( at present ) is that no-one knows the full story and this causes rampant speculation. All very much to be expected in the circumstances.

 

[metric]

i notice the red 'TRADING HALT' announcement on the comsec cnp page is gone. i suppose that means cnp is to open today with the market. it will be very interesting to see at what price cnp opens at, and how it fares today.

 

[moneymajix]

Re: CNP - TH, bids ...

The 90c valuation figure has showed up again in The Age today.
(AFR mentioned 90c also the other day).


http://business.theage.com.au/rescue-bids-halt-trading-in-centro-shares/20080403-23iu.html


Rescue bids halt trading in Centro shares

Natalie Craig and Eli Greenblat

April 4, 2008

CENTRO Properties Group has said it remained without a binding deal to save it, despite speculation one was about to be reached.

The embattled shopping centre owner and manager and its satellite, Centro Retail Group, were forced to call a trading halt in their shares yesterday when a report said as many as six groups had lodged their rescue bids for the property business.

The bids took a variety of forms, from recapitalisation to a purchase of some or all of the shopping centre assets, but they all valued Centro Properties' stock at a maximum of 90¢ each.

 

[nioka]

The indicative price for CNP shows a drop of 7.5c on opening at this stage. I showed even 10 mins ago????????

 

[jaeyon]

The indicative price for CNP shows a drop of 7.5c on opening at this stage. I showed even 10 mins ago????????

yep opened at 44.5c today, down from 50.5c at time of the halt yesterday.

wonder if this article will induce the same SP movements as yesterday

 

[metric]

yep opened at 44.5c today, down from 50.5c at time of the halt yesterday.

wonder if this article will induce the same SP movements as yesterday

i didnt think it would happen. but its shooting up now. 50c when i started writing this post. it 53c now. on the way up again...wow!

 

[moneymajix]

Yep, more thrills.

50+ million in volume in just over half an hour.

Volatile.

It was green and hit high of 53.5c.

Low 40c.



Who is doing all this buying?

 

[sting]

76 + million and back to 44.5.... this is all over the place but one thing that I have noticed tho that the price drops have been initiated by small amounts on the sell side which causes a flow on effect to be followed by larger buy orders.

Its as if xyz holder puts on the market small parcels of shares at reduced prices waits for the flow on effect and then buys up big at reduced prices.

The above is a theory only and is purely my opinion with no proof to substantiate it but would like to see if others agree with me. If I am correct someone out there is trying to buy up big at cheap prices quickly before they have to declare.

SEMPER UBI SUB UBI

 

[vida]

It appears the profit taking and buying has eased up and stabilised the SP for today. The rumours have not been confirmed nor absolutely denied so the SP has stopped soaring but is not diving either which is a good base to give the investors time to decide where they stand.

It is looking good for those who bought in recently regardless of the uncertainty and there is time for CNP to negotiate a good deal and make a strong forward going announcement on which the sp may rocket. There is only so much a rumour can do and if nothing confirmed then its effects will dissipate pretty quickly I would think.

I have read that we should buy on fact and sell on rumour to make money in the market. It was a great time to sell yesterday for recent investors but also it appears a good time to buy for many who snapped up lots of stock as the SP rose. There is obviously confidence that there is a lot more upside.

 

[oldblue]

It really "all Depends ", vida.

The old adage was " Buy the rumour, Sell the fact ". This may have been temporarily suspended by market conditions but in my experience, its generally pretty sound philosophy. If philosophy is the right word.

 

[prawn_86]

Just to let you know guys,

Any further posts with just price or volume commentary or low content posts which do not add any detail or analysis will be removed.

People can easily check the price themselves...

thanks

Prawn

 

[nioka]

The sales for the day have passed the 100,000,000 mark. That is a fair percentage of the companies shares. There will be a percentage of day trading but the ownership of the company has dramatically changed hands in the last day or two. It will be interesting to see if any majority shareholder notices come out in the next few days. Is someone building a long term holding? Is there any insider influence? Who knows what?
I note that CNP is not one of the companies listed on the Opes thread as being one sold on account of ANZ. I had expected that would have been one.

 

[YELNATS]

Re: CNP - TH, bids ...

The 90c valuation figure has showed up again in The Age today.
(AFR mentioned 90c also the other day).


http://business.theage.com.au/rescue-bids-halt-trading-in-centro-shares/20080403-23iu.html


Rescue bids halt trading in Centro shares

Natalie Craig and Eli Greenblat

April 4, 2008

Just noting that The Age article indicated a valuation of 90 cents "maximum", ie value could be under 90 cents.

Quote
The bids took a variety of forms, from recapitalisation to a purchase of some or all of the shopping centre assets, but they all valued Centro Properties' stock at a maximum of 90 ¢ each
Unquote

(my bold & underline)

 

[MRC & Co]

Who is doing all this buying?

Probably those who were worried they may miss out on some easy profits!

Closed near the low on high volume, technically a bad sign. Wouldnt like to be holding this one over the weekend, if your only in it for some quick profits!

 

[sting]

Surely the extordinary high trade numbers cant be from mum&dad investors or day traders it has to be either insto's getting out or getting in. Lets hope its the latter. IMO they had a go yesterday and buying pressure put it through the roof day it loks like carefully strategic buy/sell/buy combinations has enabled the price to be kept low but turnover is equal to yesterday's buy up.

Could one of the suspected bidders interested in bailing out/buying out be able to gain enough shares to seriously influence the boards descision I suspect it would require a far greater buy up than what we have seen so far if I am right we should see the same scenario as yesterday and today over the coming days


SEMPER UBI SUB UBI

 

[vida]

Source: News Bites
Orbis Global Equity Fund bought 26,435,953 Centro Retail Group securities worth $8,684,157 on April 1, increasing from 117,405,616 securities (5.14%) to 143,841,569 securities (8.29%).
STOCK DASHBOARD: April 03, 2008

that is a vote of confidence ...

 

[Rocket man]

I agree Vida .. thats a big vote of confidence especially for such a volatile share as CNP

The way I see it .. you take a punt at 35-40c and chances of making 50% + are probable IMO.... high risk of course.. not for the nervous nellies

 

[vida]

Yep and some people would have made 300% profit if they bought at .23c in past several days and sold at .65 last thursday. Those that were quick and stuck to their PCs for the right hours on the right days could have done this.

I am a nervous nellie at times too Rocket Man but not all the time, I have moments where my confidence is shaken but mostly I am quite steady and trust things will work out in the long term. Unfortuanately I have long term sights at times when short term gains should be taken. I am trying to readjust my thinking along these lines as great short term opportunities sometimes prove more profitable than any long term investment

The thing is to have the mindset to take the opportunity when one sees it. I saw the CNP sp rise to above .70c a while ago and I coudl have sold at a nice profit and then again to .65 last thursday and I just watched it. I would have been very happy today if I had sold out but am still in and holding, keeping the risk alive but it may work out. In meantime I am trying to change my strategy of longterm as it doesn't suit all stocks in my porfolio, only some.

Best wishes

I agree Vida .. thats a big vote of confidence especially for such a volatile share as CNP

The way I see it .. you take a punt at 35-40c and chances of making 50% + are probable IMO.... high risk of course.. not for the nervous nellies