I have decided to start a general discussion thread for CDT, as it makes it easier for outside investors to review insights and information shared via a central thread as opposed to scouring old threads relating to previous asx announcements.
Why have I just joined the register (yesterday in fact), well apart from the obvious low market capitalisation, CDT has always had enormous potential but in my opinion had way too many tenements. Management have finally realised that having a concentrated portfolio of a handful of prospective tenements is better than being overly diversified. Generally speaking, your first couple of ideas are your best ones, same goes with investing in my opinion. I have been watching this stock for the last 12 months so glad to finally have bought some stock here at attractive prices. I am not here for a short term trade either and am looking for some serious share price appreciation over the next 2 years.
The short term catalyst for me taking a position here was the recent quarterly asx announcement whereby management have openly stated they are in advanced discussions with divesting some of its tenements. They now have a clear business strategy/plan to focus on battery metals, all they need to do now is execute. Divesting tenements always takes up a considerable amount of time away from management. Essentially, they have been busy focusing on the strategic side of the business as opposed to the operational/exploration side. Once divestment occurs and we have more cash in the kitty, you will see a lot more focus from management and exploration activities will start to ramp up (better regular news flow). Divestment will also help minimise future dilutionary events which is a big positive in this market. It is going to become harder and harder for companies to raise capital with borrowing costs increasing in my opinion.
Whenever I take a position in a company apart from reviewing price and management, I always ask myself is the next 12 months news flow going to be better than the last 12 months and if the answer is a resounding yes, then I buy. The market has spoken here and clearly wants management to focus in on graphite, lithium and base metals, which is what they are going to do over the next couple of years. At least management have listened which is a good sign. All the best, CP.
CDT Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
