CAB spending the money on advertising and developing their CAB app.
Whilst I agree with this policy, I am concerned that with the competitive environment becoming tougher that this increase in advertising will be a consistent requirement.
If so, then the profit will rebase lower and future EPS and dividends will reflect 2xcurrent half yr profit.
If this is the case then the shareprice will trend lower to around $1.20.
The market is currently hoping that this is not the case, hence the price still being supported at the $1.80 level.
We have to just wait and see. Too early to tell yet.
CAB Price at posting:
$1.81 Sentiment: None Disclosure: Held
