Codan / Minelab Stock Price Down

[phrunt]

Codan/Minelab's share price of $9.81 today when it reached $19.35 in June and has been in free fall ever since would indicate something is up.    I hope it doesn't affect them releasing new detectors as they tighten the belt.  I am guessing the Deus 2 and Legend won't be a good thing for it either.   What I don't get is why they didn't ride a high with the GPX 6000 release, normally any detector release shoots up their share price, instead it went down.

[Joe D.]

Good info Simon,

   As I don't watch ML stock price! But you may be on to some indicators that they may be preparing for in the future! They are by no means stupid, and are probably in a good position to make some predictive adjustments!👍👍

[Chase Goldman]

12 minutes ago, phrunt said:

Codan/Minelab's share price of $9.81 today when it reached $19.35 in June and has been in free fall ever since would indicate something is up.    I hope it doesn't affect them releasing new detectors as they tighten the belt.  I am guessing the Deus 2 and Legend won't be a good thing for it either.   What I don't get is why they didn't ride a high with the GPX 6000 release, normally any detector release shoots up their share price, instead it went down.

I would reckon that the GPX 6000 price point would limit the volume of sales.  It was apparent that they were primarily targeting the African gold prospecting by limiting the complexity of the 6000 (i.e., remove the need to tweak settings for specific environmental conditions).  Yet the thing appears to be cost prohibitive for that market given the cheaper GPX alternatives as well as capable, value-priced VLF options such as the Gold Monster, Equinox, 24K and ORX.  I have no idea how well the 6000 is selling but it may not be selling as robustly as anticipated because ML overreached with the GPX 6000’s high price point.

[phrunt]

Yes, and used genuine GPX 5000's sell for as low as $700 USD in Africa likely lower I know this for a fact.... I own one of them and I'm not sure what profits the dealer in Africa made on acquiring and reselling them and the guy that imported them to NZ and his shipping costs, and that's before the GPX 6000 was released so who knows if it caused them to drop in price even more, or increase in price as they may have dropped in anticipation of the 6000 which seemed to be the case and then possibly increased again after its release.

[Steve Herschbach]

They sold huge numbers of the higher priced GPZ in Africa so I doubt price is the issue. More like the Africans don't care about ergonomics, and unlikely to switch to a GPX 6000 just because it swings nicer. But we do know the chip shortage has throttled sales of many products this last year, and Minelab may not have been able to make as many 6000 as they would have wanted. There also has been an abnormally high failure rate, and that can't be helping.

[GB_Amateur]

In my limited experience and knowledge of securities, I don't think it's clear that a company's stock price reflects the robustness of the company nor does it directly impact that company's abilities to operate at its current level.  It's a perception by the trading public of many things, and not all of that perception is justified.  It's certainly a complicated and convoluted realationship and public perception can have an influence in the boardroom, though.

Here's another thought = question:  Codan isn't simply Minelab, is it?

[schoolofhardNox]

1 hour ago, phrunt said:

Codan/Minelab's share price of $9.81 today when it reached $19.35 in June and has been in free fall ever since would indicate something is up.    I hope it doesn't affect them releasing new detectors as they tighten the belt.  I am guessing the Deus 2 and Legend won't be a good thing for it either.   What I don't get is why they didn't ride a high with the GPX 6000 release, normally any detector release shoots up their share price, instead it went down.

It may just mean that they were overpriced because of hype and sales projections. Now it may be settling into where it should be, taking into account world issues as well as lack luster (I'm guessing of course) 6000 sales. The Equinox had to be good for them financially, but the competition from companies that can make a difference, may worry investors. Maybe there is just better stocks to put your money into these days.

[phrunt]

This is Codan's figures up until June which is the end of financial year in Australia and coincidentally when the share price started to free fall.  You'll see although they dabble in radio communications they're a very small part of the business compared to their metal detecting technologies and reducing too while metal detecting is growing rapidly since the Equinox really.

It'll be interesting to see the next financial years results.

I had some Pre-Equinox anticipating the success of the detector and sold at close to peak Equinox, I didn't go in this time with the GPX thankfully.

I think by the looks of the share price and with the competition really heating up they need to release the Equinox / CTX replacements and fast, and they need to follow the success they had with the Equinox by making them reasonable priced so they sell like hot cakes rather than a trickle of them to a select few.

[mn90403]

What portion of the Metal Detection had to do with their military contracts?  Did they lose one or not get one they wanted?

I do think that there is an over-saturation in some high end markets as there are a few choices now of brands and Minelab has reached many new mass market users with the Vanquish and lower priced units.

You would think that there would be a Christmas bump but maybe it is the chips.  The dealer network must really be taking a hit with Covid and just how difficult it is to find gold.

[Chase Goldman]

Maybe people aren't dining out as much due to Covid and that tanked their anticipated silver saver new product sales