Takeover Target, page-7

Hi Stayer
I doubt they'll get taken over by a local team or PE. I think an international player would outgun them if they believed CDD was really in play. Would the funds be willing to sell at the bottom of the cycle? Would seem a bit silly to panic. I also suspect writedowns will be coming and are factored into the price. However on the flipside of writedowns, much of the business value is denominated in USD - so doubt writedowns will outweigh currency appreciation benefits on balance.

But we need to wait and see what happens. I'm not going to expect the tough times to be over for a while (I am on the fence - will oil be $US50 or $100 in 12 months time - I have no idea - but in two or three years I definitely think it will ahve been over $100 again) - so am hopeful of further SP falls, and a "fair" crap raise and acquisition is OK with me too, in the energy bus. It is a shame for longer term holders that CDD's SP has fallen in a hole at such a great time to make acquisitions.

GLTA

Panic selling is welcome - but I would prefer it to be a big fund selling so that I can buy more cheap - cheers ;-)