Codan Ltd (CDA)

Discussion in 'Stocks & Derivatives' started by finicky, Aug 7, 2012.

  1. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    Record profit announced despite book loss on sale of under performing asset + transaction costs of restructuring and an acquisition

    7 August 2012

    FY12 highlights in challenging economic times:

    Highest reported profit of $23.1 million

    Underlying profit increased by 19% to $27.9 million

    Annual dividend increased to 9.5 cents

    Continued growth of metal detector sales and major new product release

    Major new product releases in Radio Communications

    Successfully divested Satellite Communications assets

    Acquisition of Minetec brings diversification into resources technology and
    services sector.

    The Board of Codan Limited has announced a net profit after tax of $23.1 million
    for the year ended 30 June 2012 compared to the prior year of $21.8 million.

    Underlying net profit after tax was $27.9 million from $179.4 million of revenue,
    which compares to $23.4 million in the prior year. The underlying net profit after
    tax excludes the loss on sale of the satellite communications assets,
    restructuring costs in relation to that transaction and also transaction and
    integration costs associated with acquisitions.

    The company announced a final dividend of 5.5 cents per share, fully
    franked, bringing the full year dividend to 9.5 cents compared to 9.0 cents
    for FY11, an increase of 5.6 %.

    Codan also announced today the acquisition of 100% of Canadian-based land
    mobile radio company, Daniels Electronics Limited (Daniels), for an upfront cost
    of CAD$25 million (approximately AUD$24 million), with the possibility of
    approximately CAD$2 million (approximately AUD$1.9 million) in additional
    payments if certain earn-out targets are achieved over the next 18 months. The
    acquisition of Daniels will be funded by a mix of debt and equity and is consistent
    with Codan's stated strategic goal to expand the radio communications business
    by investing in adjacent markets and technologies.

    http://www.codan.com.au/

    http://forums.silverstackers.com/topic-27360-mining-services-stocks-back-in-focus.html

    [​IMG]
     
  2. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    I will be subscribing in full to the announced SPP @ $1.40, and possibly buying more on market if price weakens. Might be an opportunity to buy here, with the stock cum 5.5c dividend, and the 1.40 cap raising acting as a price magnet.

    Rog Montgomery's Skaffold has the stock valued at $2, implying a current discount to intrinsic value of 24%, and confirmed as an A1 stock

    Final dividend 5.5c, ex date 10/09/12

    Claims to synergies from the new mobile land radio acquisition of Daniels look convincing, particularly the ability to sell the Canadian company's products through Codan's global network and using Daniels stuff in Codan's mine services offerings

    http://stocknessmonster.com/news-item?S=CDA&E=ASX&N=188840
     
  3. SilverSanchez

    SilverSanchez Active Member

    Joined:
    Jan 17, 2011
    Messages:
    2,679
    Likes Received:
    0
    Trophy Points:
    36
    Location:
    Melbourne
    Yeah been watching this stock,

    SPP at 1.40 - we'll see if i can pick some up at that or close to that price
     
  4. SilverSanchez

    SilverSanchez Active Member

    Joined:
    Jan 17, 2011
    Messages:
    2,679
    Likes Received:
    0
    Trophy Points:
    36
    Location:
    Melbourne
    But since that skafold guy likes it maybe i shouldnt ..... :D
     
  5. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    My bid @ 1.45 filled for 5,000 more of these, and will be adding further if the SPP pulls the price back close to the $1.40 offer. All are cum the 5.5c final dividend which goes Ex date on Sept 10th
     
  6. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    The behaviour of this little stud of a stock has me cheerfully perplexed lately. The damn thing had all time record volume on Sept 7, the day before it became stripped of its dividend. There were multiple trades going through of 600,000 and 200,000 shares from someone or something big. This one doesn't normally do over 500,000 in a whole day! I picked up 5,000 shares for 1.415 at end of day only to see it rammed down in the after market auction to 1.39. Only 16,000 shares traded hands at that price, but look at what it did to the candle - bearish engulfing. Then next trading day Sept 10, when it is trading without the 5.5c dividend mind you, it reverses with a bullish piercing line candle and has not looked back in the subsequent 4 days. Completely the reverse of what you expect, and manipulated I'm thinking

    [​IMG]
     
  7. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    Ex-per-loded out of the chocks this morning. Now challenging the Oct 2010 high of 1.80. All time high back in 2004 was 2 bucks. Expect it to fall back from this overbought condition though. Maybe another sally at the 1.80 level later?
    Mr Market liked the chairman's concluding remarks at the AGM published today:

    "For the full year we remind ourselves that we are living in uncertain and cautious economic
    times which can continue to delay purchasing decisions. We also have competitors,
    including counterfeiters, whose actions could put pressure on revenue and margins.
    Although it is early in the year, based on current momentum and a detailed consideration of
    management's full year forecast at this morning's Board meeting, we would expect to
    substantially exceed the company's previous record underlying profit of $31.1 million and
    expect it to be in the region of $40 million, which would represent an increase of more than
    40% over the result achieved in 2012
    ."


    Oh yeeahhh ... oh I like that (Cosmo Kramer)


    [imgz=http://forums.silverstackers.com/uploads/1893_cda_oct_17.gif][​IMG][/imgz]
     
  8. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    Watch the move tomorrow - influential tip sheet pick of the month. More later .....


    [​IMG]
     
  9. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    The tip sheet that made CDA pick o' the month back at last post was Motley Fool. Since then Russell Research also tipped it on thebull free newsletter: http://www.thebull.com.au/articles/a/34011-18-share-tips---17-december-2012.html
    The Montgomery Fund also holds it.

    I can't really recommend it at this level but the chart is quite positive looking. I have trouble biting on a stock that has already run and sometimes this has been to my disadvantage. It's performing poorly today on a bullish ASX, but low volume. The pattern looks like a firmly consolidating ascending triangle under resistance of 2.50. I would pick it as likely to break out above 2.50, if forced to predict, and if that happens should get a bit of continuation of uptrend. Not as tempting though now - not adding myself. Bets off and time for a review if it closes below 2.30

    Montgomery's Skaffold has it valued at 3.54 for FY13, dropping to 2.58 FY14, and 2.93 FY15. But these valuations from Skaffold can change at the drop of a hat. Still rated as A1, their highest level. Number of analysts covering is only two.

    [​IMG]
     
  10. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    Geez the day of the prior post, Jan 13 was the day the triangle was broken. A few days later was a gap down and today another gap down. I'm now trying to capture it with two notions. The low formed today will be support as it matches the low formed back in November, or the price crashes into a full on downtrend to fill the gap made in mid October at 1.65. Yesterday is where my stop-loss would have triggered if I used stop losses and if I were trading the stock.
    Half yearly report usually in third week of Feb.

    [​IMG]
     
  11. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    I know what you're thinking. "Did he scan with a 5000 or only a 4000?" Well, to tell you the truth, in all this excitement they kind of lost track of sayin. But being as this was a Minelab Magnum 5000, the most powerful handscanner in the world ......

    "Gold nugget found near Ballarat

    A MASSIVE gold nugget that could be worth upwards of half a million dollars has been unearthed in Ballarat.

    The nugget, weighing in at 5.5 kilograms (177 ounces), was discovered by a local prospector yesterday, who rushed it to the Ballarat Mining Exchange Gold Shop.

    The exact location and the identity of the lucky prospector remain secret, but gold shop owner Cordell Kent said the nugget was found within 30 kilometres of the Ballarat CBD.

    It was found about 60 centimetres below the surface of the earth, with the prospector using a state-of-the-art detector worth upwards of $6000 - a Minelab GPX-5000 (Ed: Minelab is a division of A1 asx listed company Codan (CDA).

    If sold at market value it would be worth just shy of $300,000, but its extreme rarity would mean it be worth far more, according to Mr Kent."

    http://www.thecourier.com.au/story/1241013/gold-nugget-found-near-ballarat/?cs=62
     
  12. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    CODAN LIMITED RESULTS
    HALF YEAR ENDED 31 DECEMBER 2012

    Review and results of operations

    Half-year highlights:

    Highest half-year profit in the company's history

    Interim dividend increased by 50% to 6.0 cents

    Tough business conditions in Radio Communications, but a major product
    release achieved

    Successful acquisition of land mobile radio business and related capital
    raising

    Minetec business continues to transition to a technology solutions supplier
    to the mining industry

    Second-half profit for FY13 expected to be as strong as first half

    The Board of Codan Limited has announced a net profit after tax of $26.5 million
    for the half year ended 31 December 2012, compared to the prior period of $9.9
    million. Underlying net profit after tax was $27.4 million from $135.9 million of
    revenue, which compares to a profit of $10.4 million in the prior period. The
    underlying net profit after tax excludes acquisition costs in relation to the
    acquisition of Daniels land mobile radio business, and a write down of head office
    building assets which have been partially offset by an insurance claim recovery in
    relation to the 2011 Queensland floods.

    The company announced an interim dividend of 6.0 cents per share, fully
    franked, compared to 4.0 cents in the previous interim period, an increase
    of 50%.

    http://stocknessmonster.com/news-item?S=CDA&E=ASX&N=721660

    ---------------------------------------------------------

    Chart:

    Could be heading for $3.50. Not really priced for yield now unless they change expectations next Half, which they well might. Skaffold valuer currently lagging these results. Sees eps in FY13 as only 23c, but the company has reported 15 or 16c in the first half alone and H2 to be as strong. So Skaffold's intrinsic valuation will rise soon. Currently seeing it worth 3.34, 2.59, and 2.93 in FYs 13, 14, and 15

    It mostly seems to come from raging sales in Metal Detection division. So how'll it look if last year's Daniels Electronics acquisition revitalises the Radio division, or the newish Mining Communications division gets traction around FY15? Then again they might not.

    [​IMG]
     
  13. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    'Interesting times' in the Chinese proverbial sense.
    Just look at that RSI indicator. Worth a watch? Gold's done, so the world's best metal detector designer, innovator, manufacturer, and distributor is done.
    I was thinking 2.50 a possibility which was almost hit today, but who knows now? $2.50 is an entire retrace of the break above consolidation at that level, so potential for a bounce at least. I'm a potential buyer at some point anyway.

    Skaffold forward intrinsic valuations are to be treated very cautiously and can seriously mislead, but valuations today are:

    FY: 13, 14, 15

    I.V: $6.57, $5.39, $4.86

    A1 rated and 5.2% ff yield at current ask of $2.65
    Notice though that Skaffold is tipping declining I.V. albeit from a much higher value than today's price, Even FY15 valuation is 83% higher than today's price. Ideally though you want a stock that will rise in value


    [​IMG]
     
  14. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    A bounce. Gaps are spooky. See that tiny gap just after mid January? Didn't spot it before. Got filled yesterday. Today price springs upwards. Why? Time and again you see these tiny voids in stock charts magnetically attracting price like little yonis. The $2.50 level has been reinforced as significant now, so I'm adding 5,000 shares if the price returns there.

    Here's a link to an investor presentation (JP Morgan Emerging Companies Conference) released to the ASX today
    http://stocknessmonster.com/news-item?S=CDA&E=ASX&N=731447

    [​IMG]
     
  15. SilverSanchez

    SilverSanchez Active Member

    Joined:
    Jan 17, 2011
    Messages:
    2,679
    Likes Received:
    0
    Trophy Points:
    36
    Location:
    Melbourne
    Metal detectors follow gold's pan by: Tim Boreham From: The Australian April 20, 2013 12:00AM Increase Text SizeDecrease Text SizePrintEmail
    Share Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?
    IN a classic case of collateral fallout, the share price of the metal-detector maker Codan (CDA) $3.06 has suffered in sympathy with our better known gold-diggers and explorers.
    Adelaide-based Codan dead-batted an ASX price query yesterday about Codan's 95c, 26 per cent price retreat over five days.
    .

    2.50 seems like a good entry point, can either put a stop loss @ 2.39 (or buy some more if it gets to 2.24), but for me personally i wouldnt buy this relief rally.
    Risk a small loss for potential 50%+ gain might be bet worth placing for some (DYODD)
     
  16. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

    Joined:
    Oct 31, 2011
    Messages:
    7,104
    Likes Received:
    476
    Trophy Points:
    83
    Location:
    bosis
    Pity the price of their detectors dont come down with the price of gold.
     
  17. SilverSanchez

    SilverSanchez Active Member

    Joined:
    Jan 17, 2011
    Messages:
    2,679
    Likes Received:
    0
    Trophy Points:
    36
    Location:
    Melbourne
    +1
     
  18. trew

    trew Active Member Silver Stacker

    Joined:
    Aug 24, 2011
    Messages:
    3,810
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    Melbern
    CDA got killed in the last half hour of trading after a profit announcement

    $3 in the morning and finished the close at $1.90


    Been hoping to get into this one - might have the chance now
     
  19. SilverSanchez

    SilverSanchez Active Member

    Joined:
    Jan 17, 2011
    Messages:
    2,679
    Likes Received:
    0
    Trophy Points:
    36
    Location:
    Melbourne
    Thats a massive drop - would have to be a good reason.
    But bye bye gains if you own.... just like that
     
  20. finicky

    finicky Well-Known Member Silver Stacker

    Joined:
    Jun 10, 2011
    Messages:
    3,543
    Likes Received:
    77
    Trophy Points:
    48
    Location:
    Dreamworld
    I'm still well ahead on this and added at 2.26, 1.70 and 1.555
    Dividend season soon too.

    [​IMG]
     

Share This Page