A leading US metal detector manufacturer has been developing simplified versions of their VLF AND pulse Induction metal detectors for the African market. I don't know how the VLF one one did, but the pulse induction one was a non starter. The problem was the price apparently. It is now being "closed out" in the US market at $999.
With the Chinese clones and tough competition from the other clued in US maker, First Texas, the market for $1000+ detectors in Africa seems to be permanently dead. Remember, these guys only want to know where there is SOME gold. They will then swarm around with shovels, flat rocks, etc. and move the dirt. The gold recovery will then be by primitive panning techniques.
Codan had a chance to trade on their reputation a couple of years ago when everybody wanted a Minelab Pulse Induction detector because it was the word of mouth "magic". The customers have now "wised up".
Minrlab's $3000 SDC detector - the original introduction date was to be 15 April - is unlikely to change things.
Unfortunately, I know nothing about the stock market!! What effect this playing out will have on Codan shares, I have no idea. The next earnings report should be fascinating. How will they reduce the Everest of inventory and generate positive cash?
CDA Price at posting:
67.0¢ Sentiment: None Disclosure: Not Held
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