It should be noted that the last time Codan blamed counterfeits for reduced sales was in 2012. If you read their announcements in 2013 and 2014, the drop in sales are attributed to civil unrest, etc.
The equivalent counterfeit detector (with similar baord and code) has been on the market for well over a year - how the Chinese got the code as well as a supply of Hitachi parts (that are scarce in the open market) remains a mystery.
The real question is that is there any further opportunities in Africa for further large sales of the high end GPX detectors. Earlier posts indicate that new sales in the market are of the cheaper gold detectors and there is probably alreadt a large market of second hand detectors as well as local repairs meaning very limited opportunities for replacement sales.
It would be interesting to see if the company provides any guidance or updates within the next month or so given that we are already four months into the half. Not much confidence in this as it took them till mid December last round to figure out that sales had dropped massively and they would not meet guidance (and this was only provided after a drop in the share price and an ASX query).
CDA Price at posting:
66.5¢ Sentiment: Hold Disclosure: Not Held
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