Only just came across the CDR thread & very sorry to hear about many losing their money in this company.
My brother is in the communications industry in QLD & in May he was in Sydney attending a related course & he rang me at lunchtime telling me he'd heard a few people say that CDR was cashed up & going places so could I login & buy 50,000 shares for him. I checked the chart & said it looked like more downward pressure was ahead so I wouldn't be buying it but he was insistent that everyone was talking about them being a good share so I bought them on his account at 14c. I kept a watch on them & noticed consistent selling into any buyers then on 4 Jun they announced all was not so good so I logged in & sold them at 11c which he was a bit angry at me for forcing a $1500 loss on him but I told him he may be able to buy them back cheaper later on if he really wanted to. Anyway, I've only just noticed what happened to CDR & thought I'd mention the fact that someone must have been talking the company up at this communication industry course & makes you wonder who was actually fuelling the 'all is good' rumour?
It's hard to know who to trust these days in many companies as the board members just get plain greedy drawing huge salaries that they are just not worth & to me ASX/ASIC is to blame for never drawing a line in the sand from the start to how large a % of shareholder funds or profits goes towards CEO salaries especially in startup companies. It should equate to the size of company captilization. As they grow they can increase their salaries up a notch but not if they aren't increasing shareholder value - we wouldn't get a raise every year if we weren't performing! I'd really like to bring that in!
Anyway,CDR didn't get him down as much as the fact on his mates advice in Nov he took out a $100k loan against his house buying naked call options on ZFX at $20.50 & OXR at $3.50(?)which fell heavily & he had only enough money for 1 so chose ZFX which was $16 & he paid $20.50 for them only to watch them fall all the way down until finally he felt broken enough to dump them at $9.70 (then the next day they ran up close to $14) He then decided to again write a call to buy OXR shares at $3.75 (I said don't as it looked like a double top) but he did & again ended up buying them even though they were only $3.10 at the time so now they are $1.77 & if he'd stayed with ZFX he would have ended up with some shares in them anyway?
I mentioned the above only to bring home the example that even large companies bringing in money can still wipe you out (I've just let all the small mining specs wipe me out at the moment) so it is a hard task to pick one that really fits the bill to invest your money into & we are all only left to trust what the Directors deem to disclose to us at the time which to me also needs tightening up a lot as still shareholders are left in the dark while ASX & ASIC pussyfoot around not wanting to come down too hard on the poor overworked Directors...!
Shouldn't get me started as I've been reading company market announcements & trading/investing for 7 years now & could reel off a list of companies that have gotten away with blatant lies & yet nothing is ever done....grrr.
Sorry my post got so long & a bit off track but good luck with what CDR deem to dish out to the long suffering holders as I feel for you all.
CDR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
