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CNP - Centro Properties Group

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From what I have read is the banks are unsecure creditors, if they pull the plug they stand to lose everything. What makes it great is that in this case the banks are on the same level as shareholders, not like ANZ and opes.
 
theres an ann out at cnp. commonwealth bank has relinquished some voting rights. about .68% or something. doesnt seem worth an ann. im not real good at reading that stuff though...
 
Hi Guys and Gals,

What do you make of the CBA shareholding reduction in CNP announced yesterday?

Does anyone know why CER opened higher than CNP, relatively speaking?

Thanks, L
 
So its crunch time one full day trading left before the announcement. I think that the Commonwealth sell off was minimal and the announcement was made including up to the 17th of April. If you look at the volume made over the last week, its been pretty low comparing to the 100m volume per day seen in March. Volume has been around 12m to 25m per day. If Commonwealth were selling off their other 80M I believe the volumes would be higher. As for CER and CNP, CER already has agreements in place for extension to September, CNP doesn't. However trading on these stocks seem to be partnered, CNP comes up with good news CER also goes up and vice versa. CER is less volatile though with an all time high and low of $2 to .31 whereas CNP is $10 to .23. Good Luck
 
centro must announce a deal to the market as soon as it has been finalised. so there could be an ann at anytime before or including the 30th april.
 
there are 4 put options on the cnp course of sales for today, for a total of 120k.

is a put option simmilar to shorting? ie; believing the stock will fall in price?
 
metric said:
there are 4 put options on the cnp course of sales for today, for a total of 120k.

is a put option simmilar to shorting? ie; believing the stock will fall in price?
Click to expand...
a put option is an option to sell a stock at maturity for a predetermined price (the exercise price).

so to answer your question i believe so.
 
jaeyon said:
a put option is an option to sell a stock at maturity for a predetermined price (the exercise price).

so to answer your question i believe so.
Click to expand...

The big difference is, of course, that the put option is only an option to sell (which may or may not be exercised) whereas a short sale is a definite transaction.

 
So looks like could be some good news coming up as definitely going the opposite to the general market.
 
I have just joined the forum but I have been following Centro since it crashed last December. There was an earlier post that asked what has changed since the stock was trading at $10.00. I had a quick look at their last financial report for 6 months ending 30 December 2007 when they reported a 1.1 billion loss. The scary thing was that asset write downs only totalled 1.05 billion which means Centro potentially made a loss of 50 million for the 6 months. They state that net tangible assets per share is $1.35 (total assets (less intangibles) - liabilities divided by number of shares on issue) but if their asset values go down then there is no net tangible assets for share holders. However, the net tangible asset is after they already wrote down 1billion so hopefully there will not be much more writedowns required. There has been reports on AFR that stating that Centro may have paid 70% too much for the New Plan Realty acquisition which really questions what the true value of their assets are. If the cost of their debt exceeds their revenues they are not a profitable entity either. Thankfully its not in the best interest of banks to pull the rug from under Centro so hopefully the extension will be granted. The other thing to watch out for is cost of litigation. It wont take much for Centro to go from a profitable entity to an insolvent one. Sorry to post such a negative post but this is the reality facing Centro shareholders.
 
I believe these losses were mainly paper losses as i haven't heard of any asset sales or any collapse of Centro owned entities? Otherwise how could Centro have reported 19c dividend per share, not paid out only because of the current credit crisis not because of the company's future profit outlook. So I would disagree with the statement "it wont take much for centro to go from profitable to insolvent"

Has anyone examined the financial report in detail? please correct me if I am wrong.
 
I would agree with you on that. It is mostly non-cash write-downs as per A-IFRS, and may include some negative Mark-to-Market for some derivatives.
On a operating cash flow basis, the business is still sound with good servicing capacity for interest. It is just relatively highly geared which would have been allowed before the credit crunch.

As long as the banks agree to refinance, which mostly likely will be in this case, the company will remain solvent. I have no doubt about that. When the US economy recovers, and the US property prices reverse their current down trend, they will not record less non-cash writedowns. It is good for them tax wise, as long as they are not forced to sell such properties in the short term.

I am pretty optimistic about that.

At this stage, it is a matter of what margin they pay for the refinancing, and what they can reasonably do with regard to sale of some retail properties.

Apparently, under the current environment, equity firms or other institutions are not encouraged to buy the whole or a large chunk of the business due to funding constraints, especially in this market where the bench mark interest rate is high and there is not much AUD liquidity. Even Wesfarmers will have to fund in the US bond market at US Treasury +425bps, which is not economical compared to equity raising.

I have a gut feel that the new CEO is pretty experienced and decisive, and a very wise man! He will work out the best solution for the shareholders, and the situations allows him to do so given the banks' tied interest and the fundamentally sound nature of the business.

Good luck to everyone that holds CNP. Good time is coming soon!

Cheers, L
 
Ugh done to death the last few months, lets see what happens re potential extension Mon\Tues, banks cant afford to lose, to walk away now is total writedown suicide in an already smashed SP.

That said I'm cashed n ready, holding significant cnp for an upside and seperately a big bag of coin in case they do make that monumental mistake so I can take advantage of the carnage they will receive if close shop. I don't honestly believe it will happen.

We're going to Sept 30 IMO, DYOR though, volatile big time!
 
This morning at 7:05am there were a total of 200,000 (5 trades) options excersised at 1.2/share. Not sure whether it was put option or call option.

Does anyone have any idea?

Thanks,
L
 
Just checked all the cnp options there are only two at exercise price of 1.2/share, CNPB7 and CNPB8, one is call option and the other is put option both expiring May 29, 2008.

Hopefully it is the call option that has been exercised. But it is more likely to be the put option exercised.

Cheers, L
 
Will there be a trading halt request before the forthcoming announcement re the extension? What are the ASX rules for a trading halt/major announcement?

Thanks, L
 
Lavender689 said:
Will there be a trading halt request before the forthcoming announcement re the extension? What are the ASX rules for a trading halt/major announcement?

Thanks, L
Click to expand...

yes there should be a trading halt. trading halts are called for all announcements which may be market sensitive.
 
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