I agree with positive sentiment re CEO and HHL buying shares. For those of us that have held back because of the forthcoming half yearly report, we have to consider whether HHL will create a wall of resistance, buying all shares on offer at 18c. It certainly has been the pattern over the past week or so.
I noticed two minutes ago that the Comsec site has adjusted EPS forecasts for CDR from around 2.5c a week ago to -17.9c for 2008. For those of you not using Comsec, here are the numbers:
Year Ending 30-06-08 Year Ending 30-06-09 EPS(c) EPS(c) PE Median -17.9 -1.9 -- -- High -12.9 6.8 2.6 PE Low -18.8 -12.2 -- -- 30 Days Ago 2.5 4.3 60 Days Ago 2.8 4.5 90 Days Ago 3.4 5.4
Number of Analysts: 4 FORESIGHT SECURITIES, MACQUARIE RESEARCH EQUITIES, ABN AMRO, JPMORGAN
From these figures, you could estimate the annual loss, although it would be a hairy estimate given the whole company is being transformed. Allow for a good margin for error in these forecasts as the high and low estimates vary greatly. The 09 forecasts are a joke in my mind (they could be 200% out either way).
I am not ramping this stock down. Good investment decisions come from good information (including the good and bad). Will the price fall on results day? I think it all lies with HHL. If your not a seller and are an investor for the long haul, it probably doesnt matter.
Good luck all.
CDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
