# CDD - Cardno Limited



## apra143 (16 November 2007)

Strong rise on good volume + news recently.

Not sure how institutional backing is good news exactly?

Even more confused about the Share Purchase Program, what's the catch?


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## sall123 (10 July 2009)

*Your thoughts on Cardno:CDD*

Hi I am wondering if anyone has had past experiences with Cardno or people who are currently owning shares with them. They look quite attractive as the posted good profits and i am thinking in buying into them. Is now the right time to buy into them or should I wait a little longer.


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## DeCal (10 February 2010)

Were doing great until the trend broke due to bad news and I had to sell my holdings at a 20% loss. 

Just got in at a bad time. Can you recall what the big dip was due to recently?


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## notting (14 May 2012)

Living in a world of it's own. 
Whilst many industrials have been taking a spanking recently.
Just thought I'd tag it for those who enjoy up trends against the grain.


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## skc (27 June 2012)

notting said:


> Living in a world of it's own.
> Whilst many industrials have been taking a spanking recently.
> Just thought I'd tag it for those who enjoy up trends against the grain.




Definitely against the market and the sector.

They announced a rise in NPAT for FY12 to $71m-$74m, up over 20% against pcp. NPAT at half year was $36m so H2 was steady basically. What they didn't mention was that the EPS has fallen to ~51 to 53cps (compared to last year of 58cps), thanks to capital raising in Feb to fund an acquisition. However, the benefits probably hasn't flowed through yet given the timing of the acquisition.

CDD has been on a fearless acquisition spreed and it will be interesting to see if they can continue the rise in profits (and share price). Some acquisition spreeds don't end well when it is debt-feuled, over-paid at top of market... there are no signs of that yet - or at least until the next set of results.


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## skc (20 November 2012)

skc said:


> Definitely against the market and the sector.
> 
> CDD has been on a fearless acquisition spreed and it will be interesting to see if they can continue the rise in profits (and share price). Some acquisition spreeds don't end well when it is debt-feuled, over-paid at top of market... there are no signs of that yet - or at least until the next set of results.




So it begins...




Probably a bit oversold in the short term. H1 NPAT to be $36-$40m which means full year of ~$70m (EPS = ~50c). At $6.30 it's a PE ~12.6 which, while higher than most, isn't that demanding. 

It went through a 100tick range today and I managed to pinch only 25. 

Why am I such a poor day trader?!


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## ParleVouFrancois (20 November 2012)

A P/E of 12 seems overvalued when compared to similar companies which are trading around 5-8 P/E multiples.


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## McLovin (20 November 2012)

skc said:


> So it begins...
> 
> View attachment 49696
> 
> ...




It's mid-November. Can't these guys give a better estimate considering the half ends in about 40 days? If they hit the upper-range then that's a solid performance, at the lower range they're going backwards.


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## skc (20 November 2012)

McLovin said:


> It's mid-November. Can't these guys give a better estimate considering the half ends in about 40 days? If they hit the upper-range then that's a solid performance, at the lower range they're going backwards.




They are kind of going backwards on an EPS basis given their acquisition and cap raising.



ParleVouFrancois said:


> A P/E of 12 seems overvalued when compared to similar companies which are trading around 5-8 P/E multiples.




Yes plenty of smaller caps in the same sector trades around PE 5-8x. But some stocks just enjoy higher PE than sector average because of past historical aura or perceived earning certainty... WOR, MND, SAI, IRE etc come to mind.

I personally wouldn't buy CDD at PE 12x, but if the market values it at 12x then who am I to argue...


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## pavilion103 (5 September 2013)

One of a few that I'm holding at the moment. 

Interesting price action this morning after a nice break up. Taking out some stops. 

Will continue to watch closely.


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## pinkboy (21 November 2014)

....and the next mining services company downgrades profit and the sellers are brutal.


pinkboy


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## notting (12 January 2015)

His tenure of 10 months as CEO

March 17 2014



> Cardno CEO, Michael Renshaw said the acquisition of PPI is in line with the firm’s strategy of expansion in attractive growth markets such as energy.  “This acquisition will strengthen Cardno’s ability to service the expanding oil and gas sector in the United States and in key emerging markets.” Mr Renshaw said.




CDD share price $7

January 12 2015



> The Board of Cardno Limited (ASX:CDD) today announced that the Chief Executive Officer and Managing Director,Mr Michael Renshaw, has resigned and will step down from his role effective immediately




CDD share price down 15% today to $2.90




PS I guess if he puts that in his resume he could get a gig at Ten?


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## qldfrog (13 January 2015)

got smashed yesterday an big paper loss in a day .
a bit over the top but market will soon show me how worse it can be....


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## Wysiwyg (13 January 2015)

This sudden senior management resignation on top of slowing business is a lethal combination. There is plenty of parched earth for CDD. (opposite of blue sky?)


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## qldfrog (13 January 2015)

Wysiwyg said:


> This sudden senior management resignation on top of slowing business is a lethal combination. There is plenty of parched earth for CDD. (opposite of blue sky?)




sadly do not know enough of the insider story;
could be the best thing for the company as well...


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## notting (13 January 2015)

Wysiwyg said:


> There is plenty of parched earth for CDD. (opposite of blue sky?)




I'd rather go with 'Leagues Under the Sea'

e.g.  There are plenty of leagues under the sea for CDD.


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## Wysiwyg (13 January 2015)

With oil and gas exploration worldwide slowing (PPI acquisition) their NPAT forecast could be found short. Being a diversified and long standing company could also balance this out and they say 50% of their business is the U.S.A. The one to be on in my opinion when their operating environment turns up again.

Fess up - Bought and sold at a loss with this company in November last year.


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## Wysiwyg (13 January 2015)

Correction to my post. 50% of CDD revenue is in $US.


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## Miner (13 January 2015)

pavilion103 said:


> One of a few that I'm holding at the moment.
> 
> Interesting price action this morning after a nice break up. Taking out some stops.
> 
> Will continue to watch closely.




are u still holding CDD or already sold off ?
People who bought at $7 in March 2014 would have been a great paper loss. Just like me with AGO got 75 % paper loss


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## Clansman (15 January 2015)

Wysiwyg said:


> This sudden senior management resignation on top of slowing business is a lethal combination. There is plenty of parched earth for CDD. (opposite of blue sky?)





Parched earth????

The correct term is scorched earth.


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## notting (20 May 2015)

A fairly boring under performing short suddenly does what it should! -24%
Shorting is like that.  You have to be there for when the day comes.
You need to be confident that the fundamentals really are crazy wrong compared to the price.


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## Wysiwyg (20 May 2015)

notting said:


> You need to be confident that the fundamentals really are crazy wrong compared to the price.



Well done. Price kept rising even though this days news was coming.


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## joeno (21 May 2015)

Wysiwyg said:


> Well done. Price kept rising even though this days news was coming.




On the other hand looks like a good price to buy now.


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## Wysiwyg (21 May 2015)

joeno said:


> On the other hand looks like a good price to buy now.



I suppose if the majority agrees that look could come true.


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## joeno (21 May 2015)

Wysiwyg said:


> I suppose if the majority agrees that look could come true.




And do you agree with that assessment?


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## notting (21 May 2015)

joeno said:


> On the other hand looks like a good price to buy now.




It's looking a little blowoffish, and the report didn't try to gloss anything.
It was kind of a brutal clear the decks kind of statement to the market.


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## skc (21 May 2015)

notting said:


> It's looking a little blowoffish, and the report didn't try to gloss anything.
> It was kind of a brutal clear the decks kind of statement to the market.




Similar to the last profit downgrade.


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## notting (21 May 2015)

skc said:


> Similar to the last profit downgrade.




With respect to the rhetoric, yes.
However, next day price action was quite different which got my attention. (not to mention the volumes!!)


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## Wysiwyg (21 May 2015)

joeno said:


> And do you agree with that assessment?



I don't know which way price will go from here but let's look at today's two notable data points.

1) Volume was higher than yesterday and more than 10 times the average volume
2) Trading closed nearer the opening price which suggests the excess supply for today was taken up and higher prices were sought right up to the 4.10 p.m. match up.


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## skyQuake (21 May 2015)

Wysiwyg said:


> I don't know which way price will go from here but let's look at today's two notable data points.
> 
> 1) Volume was higher than yesterday and more than 10 times the average volume
> 2) Trading closed nearer the opening price which suggests the excess supply for today was taken up and higher prices were sought right up to the 4.10 p.m. match up.




Apparently Deutsche Bank is looking for 16.6m shares @ 2.60 for a fund


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## notting (21 May 2015)

skyQuake said:


> Apparently Deutsche Bank is looking for 16.6m shares @ 2.60 for a fund




Or perhaps Invesco Australia where at it again, as they have been enthusiastically 'averaging in' since becoming substantial holders in Sept '14 when they assisted CDD to crack the $7 mark by taking a 5% stake.   
Invesco would be a jaw dropping 70% down in 7 months on that first legendary purchase had they not accumulated another 5% on the way down to today's low of $2.16. Making the percentage down closer to 55% which is much better, isn't it? :22_yikes:


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## Wysiwyg (22 May 2015)

skyQuake said:


> Apparently Deutsche Bank is looking for 16.6m shares @ 2.60 for a fund




I'm sure the buyer won't mind sitting underwater for an extended period,


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## Wysiwyg (22 May 2015)

$2.68 high today after company confirmed the $2.60 purchase for 10% of the company. Some lucky players who bought on the sell off.


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## notting (22 May 2015)

Wysiwyg said:


> $2.68 high today after company confirmed the $2.60 purchase for 10% of the company. Some lucky players who bought on the sell off.






> Approximately 16 million shares (9.65%) of the Company traded this morning in a pre market transaction at the price of $2.60




Perhaps Invesco copped a margin call and had to bail.  So a broker ran around looking for a buyer and got one.  Invesco were the only ones with that size stake and why else would they sell after such a capitulation unless they had to?  It's been sold as someone taking a stake which is perhaps a little more positive a way of putting it.

I mean if I had a 10% stake and just copped that kind of bashing and a broker rang me and said we have a buyer who wants 10% would you sell at 2.60 when it was 3.50 two days before?  f#$k no! 

Disclaimer-I held 1/4 of my short and am looking to increase it again! Just under 10% is not a controlling stake.


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## skc (22 May 2015)

notting said:


> Perhaps Invesco copped a margin call and had to bail.  So a broker ran around looking for a buyer and got one.  Invesco were the only ones with that size stake and why else would they sell after such a capitulation unless they had to?  It's been sold as someone taking a stake which is perhaps a little more positive a way of putting it.
> 
> I mean if I had a 10% stake and just copped that kind of bashing and a broker rang me and said we have a buyer who wants 10% would you sell at 2.60 when it was 3.50 two days before?  f#$k no!
> 
> Disclaimer-I held 1/4 of my short and am looking to increase it again! Just under 10% is not a controlling stake.




DB went to buy 10% stake on behalf of someone. There is no clue provided on who the seller might be. It could be a range of local or foreign institutions.


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## Wysiwyg (29 May 2015)

I used to feel gutted when these selloffs bounced back up again after I sold. The dichotomy is if one holds, the price keeps going down, if one exits, price bounces up again like the bad news is no issue now. Missed me with CDD but nailed me with Resmed. Nice trick you b'stards.


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## notting (22 June 2015)

Overcrowded shorts being squeezed up to 3.48.
Good! make more available to short again as they cover.


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## Gringotts Bank (11 December 2015)

Anyone FA pls?


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## peter2 (9 May 2017)

No post for more than two years. Understandable, as CDD along with this sector were hit hard for a few years. Cardno looks to be coming back. Price is now at an important level (1.50) and I expect to see a battle between supply/demand as long suffering holders have a chance to sell at break-even after two years. 

I'm already in (black arrows) as the potential reward (at 2.50) is very good. 







Psst: Would I be too bold suggesting that Cardno might be a good take-over target?


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## PeterJ (9 May 2017)

nice gap at $2.73 ish


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## peter2 (20 September 2017)

Cardno seems to be recovering looking at this 3 year basing pattern. 
Some might call it a saucer or even a cup and handle. I hate those names. All I need to see is a break of the sloping trend line and higher lows. Price is almost at an important level (1.50) which is a yearly high and top of the "feng shui reflection pool" pattern.


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## debtfree (20 September 2017)

How come my chart seems to be a little different to yours Peter? Your top horizontal line is around the $1.50 mark whereas mine is around the $2.05 mark.


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## peter2 (23 September 2017)

Well that's interesting. My other provider is the same as yours debtfree. 

Clearly there's been one or more adjustments made to the price and one provider hasn't made one of the adjustments. In my experience the Bullcharts data does not match the ASX adjusted data quite often. The ASX data isn't perfect either although they fix it eventually. 

If my historical chart of CDD is incorrect (and I think it is) then the 1.50 level is just another ordinary level of resistance and not a multi-year level. 

Thanks for that I'll make a note on my CDD chart.


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## Miner (15 April 2020)

Hello - have you guys taken time off from CDD ? Noticed Bell potter ceased to research on this. Few months ago demerger - ITG. Just a hunch for some good stocks but the trading patter is very irregular one substantial holder controlling it. But as a rule all engineering companies are not doing well for obvious reasons - if every one is at home who does the engineering ??
Any updates from holders ? @peter2 , @debtfree ? DNH


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## peter2 (16 April 2020)

I'm not interested in CDD since the demerger. CDD had been in a slow decline for ages and the current chart shows me that price is much lower. 






The daily chart shows that there's some demand at the low price (rising TMF) but this stock hasn't participated in the market rally. Not interested.


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## Miner (16 April 2020)

peter2 said:


> I'm not interested in CDD since the demerger. CDD had been in a slow decline for ages and the current chart shows me that price is much lower.
> 
> View attachment 102336
> 
> ...



@peter2 
I could only see red flags on your chart  . Thanks for sharing your observation. Take care


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## Dona Ferentes (4 October 2021)

From the latest results:


> "Cardno achieved results that were both up on last year and ahead of guidance with an underlying Earnings Before Interest Tax Depreciation Amortisation and Impairment of $51.2 million (stated on a pre-AASB 16 basis). This represents a 19% increase on last year’s result.  Pleasingly, this is the fifth year in a row where Cardno has hit or exceeded market guidance”.





> “Cardno’s clients are B2B (business to business) or B2G (business to government).  At FY21 year end Cardno’s working capital metrics approached best practice and net debt was positive (cash exceeded debt).  Despite the challenges associated with COVID-19, Cardno commences FY22 with encouraging levels of backlog and pipeline of future work. "




Covid has affected the workflow, as you would expect, but the company performance and exceeding of guidance has seen the SP lift from 35c to $1.20 in the last 7 months. There has been significant buying back of shares on an almost daily basis.


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## frugal.rock (14 December 2021)

Capital return and divvy totalling around $1.49 smashing the price down. No franking either.
Some investors may get fooled and may not even notice the dip... with an upcoming consolidation (10:1) they may think they have done very well ?
(Where has all my shares gone, but price looks good! ?)


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## divs4ever (14 December 2021)

frugal.rock said:


> (Where has all my shares gone, but price looks good )



bought some in 2011 @ $5.50   and bought more cheaper in 2015 @ $2.35

 no capital return  , no consolidation , hardly ever any divs ( while i held it )

 has been an ongoing train-wreck for years  , directors and previous directors names added to  my BLACK book

 don't expect me to buy in again

 at circa 20 cents a share check out ASW  , boring and illiquid  but even managed a share-split AND regular divs ( when it was a 60c-70c share )

 and no ITG shares either .. at least MLX gave me some WGX as a consolation prize


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