The thing was overpriced, yet they still sold 4000 of them in 12 months. With 9-10k of net profit per unit I believe they've made back their R&D costs and are now are in the gravy phase.
There were a lot of people sitting on the fence...this should give sales a real boost.
Anytime a company with a product like this lowers the price, it's a good thing. At the end of the day it's about moving stock...from looking at the reports, they had 20-30M of inventory so this will be a nice boost to sales.
It's also being done as a promotion, so that if gold does go up they can bump the price back up. Turning the GPZ7000 into a commodity itself. Once the inventory is low...they will also have more pricing power.
This news should have gone though the ASX but, it's clear the board are snobs and don't feel anything that doesn't involve yearly earnings should be released. Let's keep all company news a secret...it's a policy that's works so well for Codan the past 12 months!
The board and management don't own any meaningful shares so why do they care about the stock price. They get paid their salaries every week with the GPZ7000 sales!
CDA Price at posting:
70.5¢ Sentiment: Buy Disclosure: Held
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