Some points I gathered from the agm1) new ceo will be in next...

Some points I gathered from the agm

1) new ceo will be in next month, this means Donald will have zero or minimal involvement in the business. Even tho we already knew Donald will be gone soon, the market still regard him very highly and rightly so… market doesn’t like changes and this change is a negative
2) DTC was bought for around 100mil USD, codan said they expect dtc to deliver 90mil Aud in sales for the year. Recent contract win of 28mil usd and 60% to be accounted for in fy22 seems to me to be a significant and positive win. DTC and other recent acquisitions seems to be doing well and integrate well into the business. Codan is now a much more diversified company with recurring revenue
3) new product doing well and seems to be selling well.
4) covid related travel restrictions and government stimulus has contributed 20mil to Codan’s bottom line last year and that is unlikely to repeated. Plus codan has indicated they are tracking in-line with last years results….( so no growth ? Just tracking the same sales ?)

i believe point 1 and 4 are the trigger to today’s sell off and who knows Donald might be offloading his shares due to retirement and this might be announced very soon ( just a guess)

my thesis on codan remains the same, however, it’s share price will remain under pressure until the next update. The market does not longer think codan can deliver the same growth and to be honest, the price is not reflecting a year of 20%+ growth
I like this codan better than codan of 2020, we are much more diversified, multiple income streams, more focused and made acquisitions that are earning accreditation without raising a cent from shareholders…. Management have learnt their past lesson and knew that diversification is important … over time, codan will be less reliant on their gold detection business and market will re rate again

i thought today’s announcement is not too bad at all, certainly does not warrant a 20% fall.

lastly, market sentiment I cannot control and hence not bothered. It is a volatile company and definitely not for the faint hearted….. long term I think it will do well….