asic charges, page-4

G'day B.

Terry McCrann had quite a good article on this in the Melbourne Sun today, and probably in other syndicated newspapers.

The main thrust of the asic charge is the way the directors dealt with short term debt.

Had it not been for the global financial crisis, the magnitude of which nobody saw in advance, they would have rolled the debt over, as they and eveyone else had done with short term debt in the past.

Basically McCrann said while what the did was wrong in the way they classified some of the debt, they did not say the debt did not exist or try to hide it.

The action by the directors was not designed to defraud shareholders,benefit them personally, or to deliberately deceive.


Asic, as usual....well..... is just being asic !

The charge has no material effect on the ongoing operations of either CNP or CER, and I agree with Raeban that the hearing and outcome of the asic charges could weaken any class actions in the pipeline.

Any further pullback in the prices of CNP or CER will imo provide a great buying opportunity for both stocks.