Capital Raising, page-77

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croasian

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48

11/06/16

17:03

Post #: 18014116
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Originally posted by lost ↑

Hi All

Given the capital raising of approx. $90 Million and the future market capitalisation to be approx. $200 Million, do you think the Intangible Assets value of $340 Million is at risk of being written down and leading to future losses or will the market rise up to this value ($0.60 on the back of the envelope).

I believe CDD has more write-offs to do in the future that will impact market perception.
They wrote off $240 Million recently, but given the years of dodgy acquisitions from previous board (yes the current Governor General included) believe they are likely to write more off. Others in the Engineering sector took time to write off Intangible Assets over many years and are still going in some organisations.

While I have never thought Intangibles matter much, the generation of positive perception of this stock will take a hit as the company slowly writes more of this inflated asset item off its books.

Don't believe anyone should invest in this company until this asset is at the correct value (subjectively about $100-150 Million).

I also believe ASIC should be charging the previous directors of the board for over-inflating stock by buying dodgy assets with borrowed money and raised capital, whilst still paying dividends. They acted criminally (while insolvent has been argued before), they did not act in a business like manner and should not be allowed to work as Directors anywhere else that is responsible for shareholder funds.

ASIC has incorrect mandate.

Best of Luck
Lost

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My job as an investor is to find discrepancies between price and value.

CDD Price at posting: 48.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 25.0¢		Change 0.010(4.17%)		Mkt cap ! $13.28M

Open	High	Low	Value	Volume
23.0¢	25.0¢	20.5¢	$26.36K	110.0K

Buyers (Bids)

No.	Vol.	Price($)
1	50000	20.5¢

Sellers (Offers)

Price($)	Vol.	No.
25.0¢	33444	2

View Market Depth

No.	Vol.	Price($)
1	14017	1.060
1	14492	1.035
1	15000	1.030
1	33300	1.025
1	24875	1.005

Price($)	Vol.	No.
1.080	14424	2
1.095	1729	1
1.125	9538	1
1.140	5000	1
1.150	10949	1

Last trade - 16.10pm 03/12/2024 (20 minute delay)

CDD (ASX) Chart

Capital Raising, page-77

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Buyers (Bids)

Sellers (Offers)