Ann: Annual Report to shareholders, page-38

I made a comment about CDM recently under a different stock topic, but for those that missed it I repeat here. CDM made a packet from RAMS way back and lived off this for years. My prime reason for buying (75c in 2009) probably related to the RAMS potential. The RAMS affect peaked in 2015 above 150c. I didn't sell then because I reckoned that the tax I'd have to pay was more than the likely price fall. Boy was I wrong on that. As the RAMS affect came out there was little to replace it, so the one, then three, then five year performance declined and the share price went down with it. There was what appears to have been a temporary up-kick more recently which they jumped on to market a new fund. I also said that I had doubts that their staged buying and selling process actually added value, having seen no evidence that it did.

On the subject of what type of stock it is, I seem to recall that the RAMS proceeds consisted of large franked dividends that were stored and paid out slowly over a number of years. They can also pay dividends out of realised capital gains. In my view, CDM is a growth (+ ive or - ive) rather than income stock. Nothing wrong with this, provided you have the continuing profits to back it up. I would think WAM and WAX dividends appear to work this way.

Sentiment is 'hold', but only because there is still the tax issue. Otherwise it would be a 'sell'.