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Why I am still keen on Codan

Why I am still keen on Codan

The share price of electronic solutions and metal detector maker, Codan (ASX: CDA), has fallen around 42 per cent since June. It’s now back where it was around 12 months ago. But instead of being concerned, I believe the company continues to have a very bright future.

Long term readers will know that Codan is one of my favourite companies and it has been a significant contributor to fund performance over the past four years. After peaking at just over $19/share in June, the share price has come off and is now trading at just over $10/share as we can see in this chart which shows Codan’s share price during the last five years.

So what has happened to cause such a fall?

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This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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5 Comments

  1. Richard Swanson
    :

    Hi Andreas
    I would be interested to here your thoughts on Codan after the latest AGM.
    It seems that the geopolitical issues in Africa have been the main catalyst for the share price reduction along with executive rotation at the top.
    I like the succession planning to bring Graham Barclay to the Chairman role and the two acquisitions seem well placed for growth.
    Thanks

    • Hi Richard, thank you for your comments about Codan. Codan is no longer a position in the portfolio and Andreas was part of the changes we made to install Sean, Alan and Dan and the Australian Eagle team as managers of The Montgomery Fund and The Montgomery [Private] Fund.

  2. Hi Andreas, if its not too much to ask, what current valuation do you guys have on Codan?

  3. Hi Andreas, Codan’s got to be a screaming buy at these levels i’d imagine?

    Just re-reading some of your past sentiments and looking out for one that (all things considered) might outperform from current levels and Codan looks the goods……thankyou for your detailed insights, greatly appreciated!!!

    • Andreas Lundberg
      :

      Hi Richard,

      Yes we continue to like Codan. The situation in Sudan following the military coup is though continuing to hang over the share price and might continue to do so for a while until either the military steps back or we get evidence that demand is coming back anyway. Sudan is the biggest market for Codans gold metal detectors.

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