My view is that it's been sold off so far (harder than most all...

My view is that it's been sold off so far (harder than most all recruitment companies)that it remains very attractive on valuation measures (P/E, EV/EBITDA)'even if' earnings do remain flat inthe medium term.

I'm happy to pay $1.90 for EPS in the 22-24c range, earnings above that make it even cheaper. And 5x EBITDA is very cheap, as well as a significant discount to it's peers.

With directors/management buying up at circa $2.35, there is also plenty of incentive to drive performance and an indication of them believing the SP to be undervalued even at those higher levels.

In the last 10 years it has not had an average annual P/E of less than 9x. It's lower than that right now.

Strong ROE, ROC and rate of increase in shareholders equity and book value over a long period.

Very little debt.

Very strong fully franked dividend.

Experienced management team with financial discipline.

Strict acquisition criteria.

Typically strong cashflow.

(10 year average earnings growth rate of 8.9% + circa 9.5% yield) divided by P/E of 8.5x = 2.16x (very attractive)

Right now, though, uncertainty abounds in the market in regards to 'future' earnings on the back of the US situation and if it will flow through into our economy.

So if you are a buyer, you have too believe that it's still undervalued 'in-spite of' the potential environment ahead.

You might also need a bit of patience. :-)My purchase is based on a medium term view.

Just my thoughts, and self justification for why I have been buying CND.

"The pendulum always swings too far".

Matt