Coda Octopus Group Inc (CODA)

[Omarabsu]

I am starting to come around to the conclusion that the greatest risk of investment in Coda is opportunity cost at this point, not ‘go to zero’ risk. I think Mgmt is very comfortable with keeping the bottom line in the black and managing through a few crises (COVID, trade spats, 2016 CR and eventual 2017 budget), but I really see little effort to grow the business. I think it could flux between 20% to the upside/ downside over the next few years, but at the end of the day the valuation could stay flat.

The one point that hold me back from actioning these thoughts is the company history; if I’m not mistaken it’s already a hundred bagger for those early penny investors, and perhaps we are just in a period of steady state before another growth spurt. The base is so low for them to grow from that it really wouldn’t take much effort to saturate a few accounts already under management (navy, prime contractors, etc.). I am also dumbfounded that they haven’t received a tender offer at this point and am not sure if I understand why that is the case. The IP alone should be enough for some defense company to pay 80mm to acquire, then spin out the various service/ products business; why won’t these bb + companies pay short money for Coda? Is there something we are missing?