I have held this a few years ago, sold, followed in the background and re-bought recently.
The old issues with the detectors, coupled with being a supplier to a cyclical industry caused it to be valued at a discount to the overall market.
The company has been very open about reported earnings compared to long term, base, earnings and long term expectations.
This caused the last few years earnings to be discounted for valuations, as long term expectations were below reported earnings.
There is now more confidence in the sustainability of earnings and increases in base earnings.
There has also been more more media recently about defense industry spending.
This is starting to be viewed as a growth company, so rather than being valued at a discount of say 10x, it could easily be valued at 20+x.
When the increasing multiple is coupled with increasing earnings, we can expect some significant, sustainable share price increases.
CDA Price at posting:
$4.85 Sentiment: Buy Disclosure: Held
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