CDA - Codan Limited

[barney]

I normally watch Stocks under 10 cents but this looks interesting … Positive Chart action Thanks for the heads up chaps.

 

[Trav.]

Looks like a nice break out @ $3.10 closing at $3.14

It will be interesting to see if it can reach Septembers high of $3.39

 

[galumay]

Another stellar set of numbers from CDA, such a good little business now.

Highlights:

•  Record sales of $271 million
  
  
•  Record statutory net profit after tax of $45.7 million
  
  
•  Annual dividend of 9.0 cents, fully franked (interim 4.0, final 5.0)
  
  
•  Annual special dividend of 5.0 cents, fully franked (interim 2.5, final 2.5)
  
  
•  Base-business sales re-rated to $200-220 million, up from $180-200 million
  
  
•  Base-business NPAT re-rated to $28-33 million, up from $25-30 million
  
  
•  Strong balance sheet continues – $37.5 million net cash
  
  

 

[JTLP]

I got out with a 10% profit after recovering my cost base following a tumultuous few years. A few dollars too early [emoji2957]

 

[rnr]

On Dec 18th, 2019 Codan announced an upgraded forecast half-year profit from $26 million to $30 million an increase in the order of approx. 15.38%.
Price subsequently moved up by around 25.7% and has now closed for the day at an increase of some 10.88% based on the an opening price of $6.80 on the announcement date.
Is price going to head lower or is this a pullback opportunity and hence a time to BUY?

 

[galumay]

Its had a stellar run up, but in this frothy top of the bull market, I have no doubt it could run quite a lot higher. It does have the advantage of being an actual profitable business unlike half the stonks on the ASX!

Wish I had kept buying this falling knife when i chased it down to 65c. Also wish I had added as it recovered since!!

 

[finicky]

CDA $85m net cash and guiding to record NPAT despite Wuhan pandemic

17 June 2020
COMPANY ANNOUNCEMENTS PLATFORM
AUSTRALIAN SECURITIES EXCHANGE

Trading Update and Cash Position

In our last trading update, we disclosed that our sales were down 20% in April against our
record first-half run rates. At the time, our Malaysian-based contract manufacturers were
operating at lower capacities due to COVID-19 restrictions.
In early May, the Malaysian Government removed restrictions on their manufacturing sector.
Since then our supply partners have increased their production capacity and are now
supplying product at pre-pandemic levels.

Demand has remained strong for our metal detectors across both our recreational and gold
mining markets, and May was a particularly strong month for our Communications business,
with a $7 million project delivered by our Tactical Comunications division. As a result, the
group had a record sales month in May and has returned to operating at similar levels to the
record first-half run rate.

Cash generation has been excellent, and the balance sheet has further strengthened to circa
$85 million net cash.

Although we continue to operate in very uncertain times, Codan will deliver a record profit this
year in the order of $63 million net profit after tax

 

[galumay]

Such a good little business.

 

[frugal.rock]

Picked up some CDA today.
With the price of gold heading skywards, and high levels of unemployment, Minelab metal detectors should be in demand again.
They are the best gold detectors in the world. Pricey too, with good resale value.

A longer term play which may need up to 12 months to mature.
With government spending on defence also, hopefully Codan benefit out of that, somehow.
Cheers.

 

[galumay]

Its a very well run little business @frugal.rock - I reckon its over valued at current prices, but in this market it probably can run a bit harder.
(i hold, and am not selling.)

 

[finicky]

I regretfully have sold 3/4 of mine due to my belief in an incoming general market crash (after a short melt-up). Codan was my biggest holding. I too felt it was over valued at current earnings but because of growth potential maybe not. The metal detector sales environment couldn't be better.

It's tried investors' patience but I still have low level optimism for its Minetec division - I thought the Caterpillar alliance would be transformative but I sense from Codan's M.D's comments that Caterpillar has been dragging its feet. Maybe it's just tying up the tech to exclude rivals. Old news but BHP has been giving the system a trial at Olympic Dam.

A short promo for Minetec
https://www.minetec.com.au

 

[frugal.rock]

Codan on the move?
Up 9.6% ATM at $9.04 with no reason to hand.
Is there a good dividend in the mix?
A bit of wait and see I guess.

I regretfully have sold 3/4 of mine

Usually my situation.
Sell, price goes up.

 

[finicky]

Chances look good for a close at an all time high today? Volume fairly good for before luncheon.

.

 

[galumay]

Nearly a 10 bagger for me after todays bump, maybe attracting the gold bugs??

 

[frugal.rock]

FY20 SUMMARY
• Highest full-year profit in the company’s history.
• Record Metal Detection and Communications sales
• Annual dividend of 18.5 cents, fully franked
• Strong balance sheet continues - $93 million net cash
• Invested in excess of $30 million in product development

Dividend of 11 cent announced also.
SP has hit all-time record high of $10.10 this morning... over 12% up today... (I'm out... )
Go-dan.

 

[finicky]

This is like getting divorced and watching your ex go on to runaway success, crap.
Good chart read @frugal.rock - I assume that had something to do with it.
A few panels from the preso - one about the Minetec division. Minetec ran at a loss but is only 2% of Codan's revenue. Does seem to be getting more traction with its tracking system now going live at BHP's Olympic Dam and its 'Minestar' collaboration with Caterpillar operative at a big block cave mine in Indonesia and included in a hardware order from Newmont at its Tanami Gold mine.

 

[frugal.rock]

Good chart read @frugal.rock - I assume that had something to do with it.

I plead the 5th...
And learning more everyday...

 

[finicky]

Fy20 annual report in from Codan
Selling most of my holding in this too early has cost me a small fortune. Sold roughly 3/4 of my holding before a big $3 impulse rally. I blame @DaveHcontrarian on twitter for panicking me about the global deflationary bust
One disappointment for me in the report was the small Minetec division which was written down for $7.5m of redundant R&D. Looks like its now down to just the collaboration with Caterpillar.

Held

 

[Dona Ferentes]

Fy20 annual report in from Codan
Selling most of my holding in this too early has cost me a small fortune. Sold roughly 3/4 of my holding before a big $3 impulse rally. I blame @DaveHcontrarian on twitter for panicking me about the global deflationary bust

Held

Thanks for the honesty .... is the next contrarian indicator when you change this narrative; "If I talk positively on any stock it comes with the caveat that I expect a second and deeper market crash soon. I have been liquidating shares and any buy will be a rare individual exception "?

(you don't have to answer)

 

[galumay]

Also interested! Let us know when you buy back in Finicky!! Seriously though, its one of the toughest parts of investing I reckon, hanging on to businesses that run well past ones range of intrinsic value. Thankfully i still have most of my CDA despite the huge run.