Not a good announcement and will be difficult to argue the news...

Not a good announcement and will be difficult to argue the news was not out there. But we are seeing more and more of this so almost becoming the normal as watch dogs have no teeth.

However we need to move on. On a pure financial take first half are about $4m with the second half expected to be better. If the full year profit is $8m (EPS 4.5c) and pe at 14. I would consider this the low.

Before attempting to guess the high my immediate concern is are they making losses on the detector business. The announcement is not clear but talks positively about the other areas and a 80% reduction is sales sounds bad.
This raises the next concern, in the trading halt management were in the process of assessing the Nov month and on the back of that dropped the 1st half profit by almost 50%. They must have been aware of this earlier or was it really the nov result and dec forecast??

Right back to the financials, the outlook for the 2nd appears positive and management have always maintained the 2nd half of 2014 was going to be better. Let say 100% better that means $12m (EPS 6.7) and pe of 10. Based on that CDA now seems fairly priced.

Will the 2nd half be substantially better or has management lost touch with the market and momentum permanently swung against them?

At this point happy to wait and see although was very tempted to bite this morning.