CWN – 1.27%: Shares were lower today while the 4% decline in the Hybrid Securities (CWNHB) also caught our attention. Chair Helen Coonan was in the witness box doing her best to argue that the ‘old Crown’ is no more and that new management and a refresh of the board was enough to offer regulators piece of mind. However, a letter from Crown warning of catastrophic consequences if they lost its Melbourne licence including a potential breach of lending covenants was enough to see the stock lower while the hybrids fell by more. Not ideal, we hold both across our Growth & Income Portfolio’s respectively. That said, we do believe they will get through this and any dip related to this enquiry will only entice suitors from the woodwork – although we’re conscious that further downside may occur before then.
MM remains bullish CWN
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