wow what a rockert, page-17

Govr, I agree that CDA's history does not seem to fit with RM's stated investment methodology, but ignore what RM is doing and look at the current fundamentals.

Companies change and evolve. CDA in the past operated in a single speciality market - in the past couple of years they have diversified into several speciality markets.

I am not sure which "trade" you are referring to but within the RF industry, Codan and their recent acquisitions Daniels and Minesite have good reputations for both their products and as suppliers.

Daniels has a strong position within their market in the Americas, but like many American companies, haven't ventured further. Codan's products sell in a different but complimentary market and their strenghts are in Asia/Pacific and EMEA. This is a very smart acquisition with a lot of upside, increasing Codan's sales in the Americas and increasing Daniel's sales in the rest of the world.

The Minesite business is Australian based and Codan will take their technology around the world - they can do this easily without major expense. The Minelab business is stable and although I don't think there will be the same level of growth as in the last couple of years, I think there will be a low level growth - certainly not dropping in a hole like I read from one blogger.

My estimate for FY13 NPAT is 23cps and I expect growth of at least 10% pa for the next 5 years from existing acquisitions. You can do your own assessment of what CDA is worth.