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CNP - Centro Properties Group

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skyQuake said:
Rumours of possible cap raising, everyone wants to be on the register. Also, breakoouttttttttttttttttttt
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Looking at the June 30 balance sheet I don't want to be on the register.

The number at the bottom has got brackets around it.
 
US news reports in the last couple of days have been saying that commercial property (esp. retail shopping centres) still haven't hit their bottom, (possibly) unlike residential. As so much of CNP is in the US, the current price just makes no sense that I can see.
 

Reaymeister could of made a lot of money if he stopped gambling and held for a few months.. Let me do the math, 100.000 x .50 = 50.000. Wow 40000 in a three months..
 
does anyone know what the changing of the board of directors would have on the share price? Such as the announcement made today.

Can someone please enlighten me as i am quite new to share trading
 
CNP has seen some very heavy volume recently. Speculators seem to loving this stock atm. I wonder if there is another breakout on the horizon.
 
investor.123 said:
does anyone know what the changing of the board of directors would have on the share price? Such as the announcement made today.

Can someone please enlighten me as i am quite new to share trading
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I wouldn't expect any particular board change to have much influence on CNP's SP.

The company's problems are longterm and deep seated and will only respond to time, an improving economy and improving property prices. The immediate danger has been averted at the cost of converting debt to equity to the point where the financiers now own about 90% and the "old" shareholders only 10%. Speculation may drive the SP from time to time but I reckon they're probably pretty fully priced at current levels.

Just IMO.
 
oldblue said:
the financiers now own about 90% and the "old" shareholders only 10%. .
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Not exactly right. There is time for CNP to avoid the dilution if the companies debts can be refinanced.The debt for equity arrangement does have an "out". If the debts cant be paid then the dilution will occur. The recent spike in the SP suggests that the dilution may be avoided. Anyone interested should read the full details or the finance arrangements made with the banks when administration was avoided last year.
 
That's also right as far as it goes.

But the holders of the hybrid securities have a right to retain them if CNP are able to refinance and seek to redeem them. This right seems to me to override CNP's rights in the matter.
For practical purposes, I'm working on the assumption that the hybrids will become stapled securities in due course. If there's speculation to the contrary from time to time, so much the better!

 
If that's the case, the higher the share price goes and the better property recovers, the more likely banks turn the bond into equity.
Will banks be so generous to show mercy on old share holders?
If you are the banker, what will you do?

And if you look at the way the volume burst out today, very weird. There is no positive news, how come suddenly all the people are buying and then retreat.
 
Gone a bit quiet on this forum? Have a question, property values in america stabilized a bit in last quater announcement. Ive noticed CNP price has jumped slightly in the last couple of weeks and was wondering if this had anything to do with it. Unfortunately I bought these shares earlier this year at the wrong time (29c) I'm in it for more medium to long term as I hope Centro may recover from GFC and property prices will start to pick up. Any thoughts would be appreciated. Thanks.
 
I wouldnt worry too much i got in at 1.40, going to be a long long term thing for me. apparently they think by the end of this year things will start looking a little better for the company.. but who knows whats going to happen now. Usa's not out of the deep end yet.
 
IIRC Centro did a deal with its lenders in late 2008 that gave most of any potential upside to them.

I have not followed it recently though.
 
drsmith said:
IIRC Centro did a deal with its lenders in late 2008 that gave most of any potential upside to them.

I have not followed it recently though.
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That's right.

From memory, the dilution resulted in something like 90% of the equity ending up with the lenders when they exercise their rights, as they surely will.

I don't see any great upside in CNP, for this reason.
 
oldblue said:
That's right.

From memory, the dilution resulted in something like 90% of the equity ending up with the lenders when they exercise their rights, as they surely will.

I don't see any great upside in CNP, for this reason.
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Note; Not exactly right. The refinancing arrangement is a complicated one. As I see it the debt for equity arrangement means that debt not repaid or refinanced by a certain date into the future would/could be converted into equity. So the dilution factor is not a certain one and could possibly be avoided in part if not in total.

Anyone interested should do more research on this matter as some statements made on forums such as these may be misleading.
 
From today's Business Spectator

"The market has been patiently awaiting a progress report from Centro Properties Group on its planned restructure and there is talk that the beleaguered shopping centre owner could be close to deal to rehabilitate its debt position. The Australian reports that Centro is on the hunt for a partner to manage and jointly own a $1 billion property portfolio. Industry sources have told the paper that Centros banking advisers Moelis & Co and JPMorgan were expected to release a full information memorandum shortly. Centro was one of the high-profile casualties of the global financial crisis, nearly crushed by its $3.9 billion debt burden and while it has since been able to steady the ship, the future of the property group is widely seen to hinge on its planned restructure. Centros new CEO Robert Tsenin, who has kept a low profile since taking the top job in January, is expected to provide an update in August. But the AFR suggests that some of its lenders may not be quite as hopeful that a restructure will provide a remedy. The paper said that the recent move by one of Centros main lenders, Royal Bank of Scotland, to sell its $US550 million parcel of unsecured debt at half price was a sign that lenders were losing patience. RBS sold its debt parcel for $236.5 million last week and the AFR reports that Centros remaining lenders JP Morgan, ANZ, CBA , NAB, BNP Paribas and Sumitomo WestLB have appointed their own investment bank to advise on where things stand with Centro."
 
Its got a fairly large depth on the buy side..

i'd love to average down on this but am still a bit scared and will put money elsewhere untill more hope about this stock is out.
 
Westfield have been rubbing their hands in anticipation of this. Centro shopping centres are a mess, simply visit one and look at how poorly maintained and managed they are compared to Westfield centres.
 
Information out Yesterday including a "Response to an ASX Price Query"

in Super summary, DYOR

Centro - CNP Financing and Restructure Update July 2010

They provided a nice US financing update (in US$)
CNP has completed financing arrangements for approximately $2.7 billion of the $3.2
billion of debt within Super LLC
CNP has secured a one-year extension from 31 December 2010 to 31 December 2011
for $2.3 billion of debt within Super LLC

they are looking to Restructure
As previously announced, an assessment of restructure alternatives for the Group
commenced in early 2010 with the objective of identifying the means by which the
enterprise value of the Group could be maximised, including recapitalisation options, and
to consider and analyse execution risks


Sorry the important bit, Currently -7% today
(i got in yesterday after a trigger and before the announcement)
 
CNP - Centro

What's happening with Centro? The price has been stable for a little while now. What are peoples views of where it will be sitting in 1, 2 and 3 years time?

At 16.5 is now a good time to get in?

Who believes it wont recover and why? Who think's it's a good investment at this price?
 
Re: CNP - Centro

Corina86 said:
What's happening with Centro? The price has been stable for a little while now. What are peoples views of where it will be sitting in 1, 2 and 3 years time?
Click to expand...

I think that's one of the hardest questions you could ask. It depends on our economy, the US economy, US retail in particular, plus interest rates for their huge debt and any possible restructuring. Roll the dice on this one.

It seems from my reading of the situation that CER is in a much better situation. (Hence I hold CER and not CNP.)
 
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