CDR has had a lot of bad press and everyone has deserted the stock expecting the worst - when expectations are at the lowest, everyone prices this into the share price and it slumps. It is easier for a stock to suprise on the upside. I have worked in many companies (ASX100's) where the stock price has plumted on bad news...inside the company it was different, hard work to regain confidence (probably harder than before to prove to market again you are capable).
Take a look what happened with iiNet...it was also suspended from the ASX just over a year ago and also had significant downgrades and blamed 'clerical errors'. It then formed a 'strategic alliance' with CDR's competitor Powertel - how similar does the share price (and the news look to CDR?). Its share price fell from a high of 1.86 on 11/4/06 to 56.5 cents by 14/6/06. That's a 70% fall and it came back after everyone sold out on it.
iiNet share announements are here: http://www.iinet.com.au/about/investor/260506_asx_announce.pdf
and here: http://www.iinet.com.au/about/investor/20060501_update_on_suspension.pdf
Here is the share chart for IIN: http://finance.yahoo.com/charts#chart9:symbol=iin.ax;range=20051120,20071122;charttype=line ;crosshair=on;logscale=on;source=undefined
CDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
