The market response following the recent profit guidance appears...

The market response following the recent profit guidance appears harsh.

Very rough calculations would see the current half year result come in at around 9-10c NPAT per share. CDA is not talking a LOSS - it is about a reduced PROFIT from the recent excellent but perhaps rather lofty levels of the last two half-yearly periods.

Plenty of room for a healthy dividend still exists and even if the payout for the final half is reduced to a very conservative 4c per share then at the current SP this an annual yield of over 6% fully franked.

I have a small number of CDA shares and have already bought a few more at these lower levels - would like to have the spare cash to buy a few more!

My expectation is that once the volatilty of the current market settles a little then there will be a steady progressive upward re-evaluation of the SP of CDA - and I see that happening sooner rather than later (IMHO).

I believe that fund managers have dumped the stock until the final figures for the second half (and the full year) are released and will review things after that - these results should be announced around early August 2013.

DYOR - these are just my thoughts - don't rely on me for your investment decisions.