I bought CDA in 2012, made quick profits and sold. Regret selling it now, although it had a poor run for a few years after I sold. Predicting future earnings is hard, but on current earnings CDA is still today ( after the pullback ) on PE of 25 which is much higher than past years. When it got to $12 it was on PE 30 which was crazy. Over the past 10 years CDA PE ratio has mostly been about 10 - 15 and in some years dipped below 10. I like the company and it has good ROE ( apart from a bad couple of years 2013 - 2014 ) and an excellent balance sheet but I reckon it could well fall further . At $8 it would still be on PE of 20 but the chart would likely provide support at that zone so I'd be tempted to buy in the low 8's.. And despite the pullback it is still now above the 200day EMA which is around low 9's. Sooner or later most companies trade below the 200EMA. yes it is more than just gold detectors but that's still the large majority of the business and the gold price has been falling. and selling communications devices to African countries is not without some unpredictability.
CDA Price at posting:
$9.71 Sentiment: None Disclosure: Not Held
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