I come back to it again and again....How could the company confirm its guidance twice in the last 2 months and then have another downgrade.
I have worked at banks before and they just don't throw out $365mil on the basis of goodwill (given CDR have no fixed assets) they must be confident the interest will be paid and the debt reduced in time.
All of the franchises were sold on delayed settlements which means every 3 months a the owners must pay CDR back for the price the business was sold to them at. Given they continue to pay and that more franchises cotinue to sell this in itself will probably see CDR access $20 mil in revenue each year which goes straight to debt reduction.
I also think that the competitors who are most probably looking at the assets themselves are going around saying how bad things are @ CDR.
Management have enough in the game and I strongly believe all will be told on Friday when the AGM should deliver us some news on the sale process.
It must be IOOF selling given they continue to reduce and someone is just sitting on the stock all day and selling down into any buying strength and retail traders do not act this way !
They let it breath to 28 cents in the morning and then wham !
CDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
