Good ASX-listed stocks to buy

[finicky]

These two look worth a watch to see how market sentiment and selling for liquidity treats them over the next few months. For my tolerance neither would be a buy now except for nibbles. I put them together because both are technology manufacturing companies with global markets, they both have net cash, both were growing before this happened, both have some sensitivity to gold mining ... and also, I hold both.

Codan Ltd (CDA)

Imdex Ltd (IMD) I have made a comment on the Imdex board about it.

Codan had a pretty awesome Cal 2019 and two months of 2020 up to the crash. It became overrated as a tech growth stock and the 2020 global Wuhan CCP Plague triggered a ~50% drop from the high to the low point so far.

It's still too expensive at my forward est p/e of 19 in this fearful environment but it reported a record earnings 1st half fy20 and recently said its Mar Qtr trading is much the same. Its Malaysian plant has been closed down for a couple of weeks but it has more than enough inventories to supply outlets for that time.

Codan has zero long term debt and $65m cash as at March 19. Inventory and receivables outweigh payables.

I figure its good for 26c eps for full fy20 of which it will retain 13 cps giving an estimated fy20 book value of 1.31

So, fy20 estimated eps 26c,

p/e is 5.00 ÷ .26 = ~19

Retained earnings = 13c

FY20 bv = 1.18 + 13 = 1.31

FY19 ROE = 21%

What would you pay as fair value normally? Four times book value for a debtless business returning 21% on bv and retaining half its earnings to return the same on that?
$1.31 bv x 4 = $5.24

Or five times for growth in normal conditions?
$1.31 bv x 5 = $6.55

The share price chart to me suggests $3 - 3.50 so beware

 

[MovingAverage]

These two look worth a watch to see how market sentiment and selling for liquidity treats them over the next few months. For my tolerance neither would be a buy now except for nibbles. I put them together because both are technology manufacturing companies with global markets, they both have net cash, both were growing before this happened, both have some sensitivity to gold mining ... and also, I hold both.

Codan Ltd (CDA)

Happy you mention CDA...I’ve held them on and off over the past decade and I’ve been watching them since they listed. CDA has always puzzled me a bit...they do some seriously cool technology and export their stuff all around the world, yet whenever anyone talks about tech stocks they never really get mentioned. Maybe that’s because they operate more in the hardware space and not software so I think they aren’t perceived as a sexy stock. I like them and think they’re a reasonably well run company. I was holding them until the crap hit the fan early March.

 

[aus_trader]

I also held CDA a few years back, but didn't hold for the nice rally that happened in 2019.

 

[frugal.rock]

Codan/ Minelab.
They make the best gold metal detectors... very expensive too!
An interesting company.
F.Rock

 

[aus_trader]

Codan/ Minelab.
They make the best gold metal detectors... very expensive too!
An interesting company.
F.Rock

Yes they will be in high demand once people have dug up and buried all the gold bars and coins in the backyard to protect themselves from the crisis

 

[sptrawler]

Codan/ Minelab.
They make the best gold metal detectors... very expensive too!
An interesting company.
F.Rock

Thanks for the info, I haven't looked at them, always thought who would use a hf radio these days with sat phones.
Didn't realise they made the minelabs, they are top shelf metal detectors, always thought they were U.S made.

 

[MovingAverage]

always thought who would use a hf radio these days with sat phones.

Commercial HF radio technology has come along way. CDA developed some seriously cool digital voice HF systems several years ago and I believe it was the basis of some good global contracts for them supplying to a bunch of governments

 

[frugal.rock]

From memory they do some stuff for the Defence forces, being;
The HF Radio stuff, a specific model metal detector retractable/
compactable to find IED's, mines etc. SDC3000 I think it was... but am having trouble remembering stuff, all.

 

[MovingAverage]

From memory they do some stuff for the Defence forces, being;
The HF Radio stuff, a specific model metal detector retractable/
compactable to find IED's, mines etc. SDC3000 I think it was... but am having trouble remembering stuff, all.

they do a lot of defence work...that was my reference to government work

 

[frugal.rock]

Touche, but "defence forces" cover merc's and other entities.

 

[frugal.rock]

Yes they will be in high demand once people have dug up and buried all the gold bars and coins in the backyard to protect themselves from the crisis

The government might encourage people to go hunting for gold again in return for social security like they did back after WW 1 or 2... can't remember, but one of our resident intelligent fossils may recall?

Time to join NAPFA again people's!
Or the organisation in your state/ territory. (NAPFA= NSW & ACT Prospectors & Fossickers Association) Cheap to join also.
PMAV for Victoria I think?
F.Rock

 

[MovingAverage]

Touche, but "defence forces" cover merc's and other entities.

Indeed...but in many situations merc’s are far better than the official governments.

 

[frugal.rock]

Moving Along...
TTT
Won't say it's a good stock, however it came across my radar a month or 2 ago? after some indication of long term trend reversal.
Their tech is interesting and they were awarded a guv contract recently. One to keep in the watch list I reckon for future reference.

F.Rock

 

[MovingAverage]

Moving Along...
TTT
Won't say it's a good stock, however it came across my radar a month or 2 ago? after some indication of long term trend reversal.
Their tech is interesting and they were awarded a guv contract recently. One to keep in the watch list I reckon for future reference.

F.Rock

a guv...there have been plenty of guvs

 

[frugal.rock]

Aye, guv.

 

[Dona Ferentes]

The government might encourage people to go hunting for gold again in return for social security like they did back after WW 1 or 2...

Or the organisation in your state/ territory. (NAPFA= NSW & ACT Prospectors & Fossickers Association).
PMAV for Victoria
F.Rock

so, Codan CDA as mentioned above?

 

[frugal.rock]

I believe the recent discussions were loosely about Codan?

so, Codan CDA as mentioned above?

I feel you have more pertinent information to discuss though, Dona?
Maybe the financials are crap?, not my area though...

 

[barney]

Won't say it's a good stock, however it came across my radar a month or 2 ago? One to keep in the watch list I reckon for future reference

Good call Frugal …

Interesting … I just put this in as my Monthly Stock pick without realising a few of you other punters have already taken note

I basically knew and know little about it but saw it rose +50% today so I had a squiz cause I needed a Stock to put in for this month. I was going to put in PNR but its also up 7% and might meander a bit longer before anything definitive.

TTT recently raised a lot of 'over subscribed' capital at 80 cents and its only just getting back to that level, so I see further potential by the end of the month.

The dump to 50 cents post cap raise would have been a good buy zone for anyone watching it given the interest shown in the CR at 80c only a couple of weeks ago