Australian (ASX) Stock Market Forum

CDD - Cardno Limited

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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.
 
joeno said:
On the other hand looks like a good price to buy now.
Click to expand...

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.
 
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.
Click to expand...

Similar to the last profit downgrade.
 
joeno said:
And do you agree with that assessment?
Click to expand...
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.
 
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.
Click to expand...

Apparently Deutsche Bank is looking for 16.6m shares @ 2.60 for a fund:cool:
 
skyQuake said:
Apparently Deutsche Bank is looking for 16.6m shares @ 2.60 for a fund:cool:
Click to expand...

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:

 
Last edited by a moderator:
$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. :banghead:
 
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. :banghead:
Click to expand...

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

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.
 
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.
Click to expand...

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

cdd0905w.PNG


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

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