CDA has today traded ex-dividend a $0.13 fully franked dividend.
Last week CDA reported the company’s highest half-year profit in the company’s history. However, despite the record profit level, the company did not provide any guidance for the future and flagged continued uncertainty with future profitability.
As a result of the uncertainty surrounding future profitability and the current global geopolitical tensions, the share price has continued to fall. The stop loss level of $7.50 was reached shortly after the start of trading this morning. The position has now been exited.
We continue to believe that the share price will recover as the market can not ignore the company’s value proposition forever. But when entering a position, we have a plan in place, and we can not forget the plan. Having a plan and selling now may hurt but will lead to long-term success.
Closed position result
Number of Shares Purchased: 500
Initial buy price: $9.31
Exit Price: $7.50
Dividend: $0.13
Position closed for a loss of $812.50.