5.03 cent is the maximum this share can get. See announcement on 5 October 2011.
Unless you have a fair idea of how the various parties will vote, it is very high risk as you are flipping a coin. Heads, its 5.03 cents. tail, its nil. Nothing in between.
Personally, i think the share should be valued at 2.5 cents (50% of nil and 50% of 5cents)at the moment.
Key risks are:
1. security holder should have got nil as i believe the convertible bond holder rank higher than security holder in a liquidation. But for some reason, bondholders are going to be only paid $0.05 in a $1! which then allows the security holder to get some money back.
2. require approval from many and all parties before 5.03 cent is available. If just one party (say the bondholders) does not approval, its liquidation and the security holder will get nothing.
3. AGM for both CNP and CER have been delayed to 30 November 2011 without reasons being given. This could mean that the board needs more time to "bend" a few arms.
4. The latest announcement (04/11/11) still refers to the old AGM dates??? Does anyone know what is happening???
CNP Price at posting:
3.7¢ Sentiment: Sell Disclosure: Not Held
