CAB is a dying breed of dog's, page-8

Just looking at graphs fails to analyse a company's earnings. Perhaps the reason at $6 the price dropped was because CAB was overvalued in comparison to it's declining income, the market recognises this and adjusts accordingly. Forgive me if I'm wrong but the current PE is around 6 and so is it's FF divvy at 6% so if you halve its price again to $1.45 that makes it's PE 3 with a FF divvy of 12%. My SMSF will be more than happy to pick CAB up at $1.50, or for $2.00 for that matter, what an excellent return that would be so to halve again would mean a drastic reduction to earnings and dividends forecasts given it already seems to have a conservative pay out ratio of under 50%. My broking site is suggesting a further reduction in earnings but it's already factored in to forward estimates in 2016 and 2017. If there was no further drop in earnings above what the forecasters are suggesting or change to estimated dividends per share for 2016 then you are suggesting that at 75 cents per share you will be able to pick CAB up on a PE of 2 with a 20% FF dividend. If CAB goes to $2.00 that's still an 8% FF return on a PE of 5 which is waaaaaaayyyyyyyy better than money in the bank my friend........