correction appears overdone

The market response following the recent profit guidance appears harsh.

Very rough calculations would see the current half year result come in at around 9-10c NPAT per share. CDA is not talking a LOSS - it is about a reduced PROFIT from the recent excellent but perhaps rather lofty levels of the last two half-yearly periods.

Plenty of room for a healthy dividend still exists and even if the payout for the final half is reduced to a very conservative 4c per share then at the current SP this an annual yield of over 6% fully franked.

I have a small number of CDA shares and have already bought a few more at these lower levels - would like to have the spare cash to buy a few more!

My expectation is that once the volatilty of the current market settles a little then there will be a steady progressive upward re-evaluation of the SP of CDA - and I see that happening sooner rather than later (IMHO).

I believe that fund managers have dumped the stock until the final figures for the second half (and the full year) are released and will review things after that - these results should be announced around early August 2013.

DYOR - these are just my thoughts - don't rely on me for your investment decisions.