The article uses the word sale or sell -its not a sale but a transfer pursuant to a Court order. Seems to infer that it is some scheme cooked up by the Chairman to sell the shares via his ex wife as a way of offloading or bailing without scaring the market. Very, very long bow drawn and an inference that should not have been made without seeing the orders. Given his statements I presume he has seen the Court Order and has checked the dates..
It is common for Court orders in these matters to say a sale or transfer must be completed by a certain date. Usually the transfer is completed close to the last day. AFR seem convinced that CTD is in some sort of mess.
Yes articles like those do leave you a little concerned - wonder if there has been something going on? But so far the financials look strong. Ok, it is highly valued and I will not top up at these prices. Further SP falls from here would not concern me as long as its not out of control.
But low debt and high PE makes acquisitions with way lower PE targets absolute bargains. Sshhhh lets keep it quiet but its one of CTD's secret ingredients of success.
Seems those at the AFR would have likely failed Sandpit at Kindergarten. Why don't they just come straight out and list the issues. Then people can make up their own minds. The bad publicity does not help.
Having said all that it pays to be extra vigilant just in case:
Watch that Operating cash conversion does right itself.
Downgrades would be a disaster.
.Watch debt levels and change in ROE.
Stumbling and picking up a dud acquisition would be a disaster. All ok so far.Looking at a possible acquisition now - see Capita ann market speculation suggests its business as usual with no issues.
Most important of all is to remember we are in the market and anything can happen - at any time - good or bad.
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4 | 5973 | 11.370 |
1 | 3403 | 11.360 |
1 | 8625 | 11.350 |
2 | 5258 | 11.340 |
Price($) | Vol. | No. |
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11.430 | 809 | 1 |
11.450 | 186 | 1 |
11.460 | 1972 | 4 |
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