With what looks like more or less permanently vanished gold rush boom business – Codan is left with military radios and metal detectors for gold seekers in Australia the US - and hobbyist detectors in Western countries.
That's a pretty thin market compared to their glory days a couple of years ago. Can they really putter along making a bit of money in this restricted market? Or will the decrease in cash flow precipitate some drastic change?
If they don't manage to stay afloat in their current situation – it's hard to see how the remaining assets would be at all attractive for a takeover artist. Especially given that the top-of-the-line metal detector intellectual property is apparently now thoroughly compromised.
I'm no financial analyst – I don't even play one on TV – but I guess the next guidance will be very interesting.
CDA Price at posting:
68.0¢ Sentiment: Sell Disclosure: Not Held
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