yonny i had to convince myself 100 times over before i decided to buy into CDR. Nothing has changed since- just more buying opportunities
only immediate danger is a breach of convenents by CDR.. which would force them to repay their debt. other than that they are relatively safe. note they clearly stated they have not breached their covs. volante issues could be the main driver for this.. according to the annual report and chats with the company.. they seem to have been overcome these difficulties which were initially derived due to excessive sales being made.. and the system couldnt handle it all.. fundamentally nothing wrong with the business .. strong growth and coote is one smart duck.
banks will want to see CDR stay afloat just as much as i do.. with $380m and a fire-sale to net a fraction of that.. their bets are on steady rebound this year by CDR.. which is echoed by the $20m loan approved by the banks.. trust me.. some seroius chatter had to have gone on there for the banks to not only decide to renew the covenents (due to a one-off event) but to give them another $20m. management must have been able to convince the banks they were going to be A-OK.
takeover is an exceptional scenario.. however my bets are that CDR may just ride it out.. which is actually what i'd prefer to see happen.. subject to some recapitiliation plans being put in place
right now.. odds are with CDR staying afloat.. sp factored in a fire-sale.. i dont agree.. hence i hold and continue to buy.
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