Codan has 3 sections, detectors, radio communications and mining technology.
Even though history doesn't predict the future, they have produced really high ROE over a lot of years and have a good reputation in radio communications around the world including the defence forces around the world. The same with their metal detectors.
But they copped a double whammy with world government spending on police, defence and other essential services virtually stopping in tough times. Add to that the big spike in African gold then the crash, they got hammered.
1st Half of 15 the sales of communications were up to just about 2011 levels and now they have a new range of detectors, I'm hoping the stars align and they get back to normal earnings (not the big African sales).
The bonus is their mining tec with underground wifi and being able to track and talk to personnel and gear underground in real time. They haven't sold anything just done trial sites with some big miners. Even though mining's not that flash, it will be underground gold and silver mines after this sort of safety gear and there not doing to bad. It could be a bonus.
Agree with Ozexplorer it could go either way but I hope for $1.30 to $1.60 and 4% dividend over the long term , with an outside chance of a bonus in a couple of years time.
Sorry about the long winded post.
CDA Price at posting:
$1.13 Sentiment: Hold Disclosure: Held
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