Ann: Cardno FY15 Guidance and Market Update, page-18

Got out a few months back, never hold companies like this leading up to confession season.

CDD has a lot of US dollar debt so now the natural hedge of large US earning is collapsing I regard this company now as junk. It is unlikely they will pay divvies now or for some years as the creditors will insist they pay debt as a priority.

They may well insist on a cap raising as well. Chances of a takeover also fading as all you would be buying was a pile of debt and a tarnished company brand. This is now a shorter's play thing and the big block order today will probably be used for short demand.

You will know the bottom is close when a company or companies like CDD go bust, I'm not saying CDD will go bust but companies of their size and excess leverage and standing in the industry will turn turtle.

I'm not down ramping as this company is officially off my list, just be warned.