cof cof cof !, page-18

Nice posts lads! And very comprehensive analysis Camsden, I'm in a similar camp to you on the fundamental analysis approach.

I've been following Coffey for a while and had 2 major concerns:

1. level of debt
2. level of intangibles

An issue with either would likely lead to equity raising (at extremely low prices) to bolster the balance sheet and a significant dilution of future eps (see CSR for a lesson in this).

I suspect in the recent general market panic most investors fled for the turnstiles of safety.

The recent company announcement confirmed that neither 1 nor 2 will be an issue this financial year. And with a bit of luck, COF has managed through the worst of it.

Clearly the growth outlook is not the best, but I'm a strong believer the market has massively oversold this quality business.

CDD - I did look at this a while back, from memory it was trading around $2......and I passed it up.....chalk it down to experience! I will have to revisit my research, but I think it was because I saw more potential elsewhere as opposed to seeing something I didn't like.