I have written few posts on Codan and why I think it will head higher, these factors includes stable management, niche product, Price of Gold and a more stable revenue recurring business model.
Now I would like to reiterate my view, market is now valuing quality companies at higher valuation, with lowering of interest rates, CDA will get a rerating. Quality is hard to come by and they deserve to trade at premium.
It is only a matter of time, not IF but when... Australia will need to decide which country to side with, USA or China ? China is our largest trading partner and USA is our long time "friend" with similar values and Australia requiring USA protection. Who will Australia choose ? whoever Australia chooses, we will lose one or another, the best solution is to remain neutral... however, will USA continue to protect us if we don't stand with them ? will China still trade with us if we continue to stand with USA ? They will make us choose......
Hence, whatever happens, defence spending will continue to head higher.... it will 100% happen....and Codan will benefit enormously from this, not just from Australian government, but also from other governments around the globe...we only need to capture 1% of the market to make our valuation rocket...
Great times to hold
CDA Price at posting:
$19.38 Sentiment: Buy Disclosure: Held
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