profit accelerating, page-3

The chairman is forecasting eps of 23c compared to 13c for FY12. This explains the sharp increase in the last two weeks.

Jumped today but still only selling on P/E of 7.8. I expect this will get rerated quickly to >10. If the market believes growth to be even middling sustainable, it should ramp up to P/E 15.

Current growth is coming from their gold detectors, but I think future growth will come from their radio division. The acquisition of Daniels Radio a couple months ago was a very good move. It increases Codan's market breadth considerably, particularly in Asia and Africa which will be high growth markets for Daniels products in the next decade. Codan already had a lead on competitors in these markets.