There are a few tailwinds going for Codan and again shows how...

There are a few tailwinds going for Codan and again shows how this company is able to acquire the correct businesses to complement its strategy.

In fact, it is one of the very few ASX listed companies that is able to expand oversea with a great degree of success.

Some of the tailwinds are:

1. Record POG, which will help its minelab business. I don't see POG going down anytime soon, in fact, I can only see it reaching record highs again as gold is one of the few ways an average person can detach themselves from the control of the central governments.

2. As Trump's MAGA effect goes on, more and more countries will require to spend more on their defence and Australia for example, will need to accelerate its % of GDP on defence to be less reliant on USA and also to have more arm power against our neighbours or China. This will mean more spends on communication equipments, a huge boost to our revenue.

3. Falling AUD, which will help with our earnings when converted back to AUD.

4. Stable management and all busineses acquired over the past few years are now fully integrated into the Codan Brand.

This is a rare time/cycle that all stars line up for Codan, I think $20 is not out of question and if Codan can keep on growing like this, then we can expect even high SP.

fingers crossed