What’s up with Codan (CDA)?
Hi James and team. What are your current thoughts on Codan (CDA) ? They beat expectations in Feb and Aug and have subsequently had a decent pullback in their share price. Cheers, Jan P.
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Answer
Hi Jan,
For those not familiar with Codan (CDA) it designs & manufactures the likes of radios, metal detectors and mining systems for use in tough mining style environments. The company has been on the acquisition trail in 2021 while also delivering strong results for the year but many regarded its outlook for FY22 to be underwhelming and the profit takers emerged on mass.
However after correcting 40% we believe value has returned and we like the stock around $13 from a risk / reward perspective especially as CDA has a 5-year track record of overachieving conservative forecasts i.e. under promise and over deliver.
