Update:
Just spoke to IR.
B of D meeting was held. There was some small delay with auditors signing off. Nothing bad!
Numbers will be release Monday!
As I said in a post a while ago that the company MUST by LAW let the market know if something bad is happening. (this is why I wasn't really concerned and remained positive.)
On Codan site they have 3 broker est. for full year profit.
12.0M
13.1M
12.4M
www.codan.com.au/Investors/StockbrokersForecasts/tabid/1387/Default.aspx
I was reminded that if there a difference of 10% the company must let the market know. (believe it's only downwards but, I wait to be stand corrected.)
So...here we go...The full year profit will be somewhere between 10.8M to 14.4M (my money is on 14M++)
Ok...that's 5.8 cents full year to 8.1 cents
That would empli a solid growth in revenue and EBITDA. This mean that the PE of the last 3 months would be the floor. I believe a PE of 25+ is more reasonable. Or to look at it this way...The profit of the company has gone up 50% in 12 months and looks to keep going...a PE of 30-50 wouldn't be out of line at all. For example: Domino's releases their numbers last week. Rev up +20% and Net +40% however it's STILL maintaining a PE of 55!! (DMP is a stock I rode all the way up and set me up for life!) CDA is a better play. I see CDA at $5-$8 in 2 years.
Again...until the numbers come out Monday to confirm, this is just me guessing.
The stock should be trading between $1.16 to $2.02++ next week. I view $1.70-1.80+ to be trading range. I'm expecting a 50%+ move Monday. If Management gives a positive outlook (not guidance) than I think this stock is trading $2-3 in a week...and the market figures the story out. Greed replaces fear!
The thing that set's this stock flying upwards is a blast in revenue. The NPAT look good but, the revenue means the product is flying off the shelves and Codan has had one time hit's in product dev or marketing to pay for everything. The GPZ is a cheap unit so they got themselves a cash cow. If the sales have taken off the PE may expand to 30+ .You do the math then.
The balance sheet will take a boost as I expect them to pay down some debt and the dividend will be supported accordingly.
Happy days are here!
(20min delay)
