At the moment, the market is saying CKF was 50% overpriced. MYR fell from $4.10 to about $2.00, and has risen again, but has a very good dividend- at $2.45, the dividend is 9.2% + franking. The dividend of CKF @ 7% (currently, but could lower with this downgrade) is not, I believe, payable until the 2nd half of 2012. Maybe the market will pull the SP lower until the dividend is akin to MYR, DJ's, and some of the other comparable stock. Because it's fallen to half its IPO price, there would be a tendency to think it's a bargain, but it could still be a value trap. As it's so new, the market still can't determine a price for the "resting place" that all stocks have, all things being equal.
Certainly a good one to watch. I'll be interested to see how it goes on dark red days.
CKF Price at posting:
$1.21 Sentiment: None Disclosure: Not Held
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