Agree totally that Codan is currently undervalued. But I would also suggest that is also currently the case for many high quality stocks on the ASX. ANZ, for example, is trading on a PE of less than 10! To suggest Codan should be trading on a PE of 25 or even 20 I believe is overly optimistic. It has a history of volatile earnings and has exposure to the mining industry.
But back to the buyback, have you managed to talk to anyone at the company about this. I have previously phoned companies to ask whether they have considered a buyback and if not, why not? In the majority of cases I have received reasonable responses. Maybe we need to engage in some shareholder activism?
CDA Price at posting:
81.0¢ Sentiment: Hold Disclosure: Held
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