Not sure if any of you went to the AGM.. but the chariman's address pretty much said it all.
Director's were quiet - Liz (chairman) did most of the talking. However whenever the Directors did speak they were optimistic about CDR's future and are awfully dissapointed about the current share price. However they are confident this will be rectified in the future with business returning to usual.
Obviously some very hurt investors voiced their opinions with one stand out performance by a lad from Perth. Put out some good points and in effect suggested that management and the board be replaced. I dont agree - but hey I wasnt in at $1.50 so I can understand his views.
Despite the occasional shareholder outburst - psokemans from hunter hall spoke.. and was not happy with the re-election of one of the directors who was in charge of the audit process.. basically Mr. Hunter Hall didnt like the fact that CDR went into trading halt for so long. fair enough.
other than that there were some great questions being asked.. some resulting in informative and soothing responses from the chairman.
Core statements for me are:
- the board are as confident as they can be about the fundamentals of CDR. losses have occured in key staff and some missed opportunities in new business.. but thats business and they just have to move on and make sure it doesnt happen again.
- safeguards are in place to ensure the Volante IT issues dont occur again. stress tests performed on systems to ensure last quarter business are not affected this year around (board very confident it will hold up this year)
- CDR will stay afloat. No immediate breach of Covs and never have been. board are confident they will be able to service the debt which falls due in 08 and 09. Also note that the $360m liability is made up mostly by bank guarantees
- CDR will forcus on improving their leverage i.e. pay off debt during the coming years
- CDR will likely come up with some form of rights issues (very favourable to shareholders) in the coming year. However this will not occur until the share price has recovered to a reasonable level i.e. when confidence is restored in the market-place.
- DATA room has closed and business will go on as per usual. With strong results this year - which is pretty amazing after such a volatile few months.
- No firms offers were received fromthe data room process. However that was due to the fact that the board felt they were not going to capture the true value of CDR. Thus no sale. Great result for LT holders and employees (as employees would be scared to bits of an impending take-over)
In conclusion: CDR will be back to a strong market cap in no-time.. thats my opinion. No reason for it to hang around these prices for too long. However people will be getting out of CDR in the short-term becaues they wanted the quick buck from a take-over. LT holders now moving in.. and will overcome the ST holders sooner rather than later.
and thats that... happy holding and CDR is on the road to recovery.
Goodluck
CDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
