Digesting the management commentary, looks like we are suffering...

Digesting the management commentary, looks like we are suffering the combo of falling sales and margins in metal detection which given the business skew in terms of metal detection vs communication means comms growth can't offset - so we have falling NPAT (30% - 40% fall maybe) year on year. At $18 CDA had a PE over 30 so the market is rerating from a growth to cyclical story where PE's of mid teens are more realistic.

If metal detectors continued to fall things could look worse short term but I imagine they'll stabilise and with Comms showing good momentum the business should start steadily growing NPAT again and in time rerate from a single digit PE (suitable to a zero / negative growth story) to teens.

In hindsight the $18 mark was caught up in Mr market's good mood, at sub $4 I suspect CDA will beat the market from here so I'll hold.

Happy to hear opposed views on why earnings may continue to slide.