CNP 0.00% 4.0¢ cnpr group

lay off the sauce and the cubans, page-27

  1. 1,190 Posts.
    Thanks for your kind words all.

    I'm just trawling through the broker reports and should have something up pre-open this morning. Won't be long.

    It is true that all of the banks seem to have made provisions against CNP default at various points this calendar year - from ANZ early in the piece to CBA more recently. To say they have written the debt off is not quite accurate; they have made a provision against potential losses. If the losses occur, they will be booked against the provision. If the losses do not occur, the provision will be written back against P&L in due course. Given the weakness in the banking sector over the next year, any bank CEO will want to a) try and avoid losses where possible b) love to write back a few hundred million to P&L to make the numbers look more rosy.

    So, it seems like everything is hanging on the lead up to the 15th December. It doesn't feel to me like the CNP directors want to pull the pin just yet but the pressure of corp. law and personal liabilities will undoubtedly be weighing on their minds. I do know that we have a first-class, well connected management team looking after the company - none of whom have bailed on us thus far. We are also being advised by some of the best.

    It is easy for any Joe-Blow commentator to say CNP is going to fail just by pointing to the recent demise of others and the current world financial environment would make it seem feasible. Remember though, NOBODY, who has a financial stake in a business at this stage (shareholders, employees, customers, lenders, advisors, etc) will benefit from a collapse, in fact quite the opposite. The beneficiaries of a collapse are the media, lawyers, administrators and asset bargain hunters and fortunately they aren't running the gig.

    The show isn't over until the fat lady sings... I reckon she's tired from recent performances and is taking a well deserved break. We'll find out soon enough.
 
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