I am thinking of starting a position in CODI. On the surface this company appears to be similar to one I invested in several years ago. The company's name was NOEL and it was a holding company/management company that accumulated profitable businesses, rehabilitated them and then either spun them off as independent or sold them. That model was extremely profitable not only for the parent company but also for the spinoffs.
I heard about CODI due to its recent acquisition of Arnold magnets. I am an investor in Great Western mineral resources (GWMGF.PK) who does business with GQD, who does business with Arnold. If the management team is really spot on, the acquisition of Arnold and its association with the rare earth metals is absolutely a spectacular play.
I am interested in your personal experiences with the company, its management, it's future and how dividends are handled.
I've been here for going on three years. I got in in the mid-9s and have accumulated shares on dips and through DRIP. The management of the company seems quite straightforward. They are less flashy than they used to be when Joe Massoud was on TV a lot. But they have always been solid, have reliably given the dividend, have bought companies smack in the middle of their stated criteria. (this was true under Massoud, too, he just talked about it more.) Management has, I think, been as transparent as one would expect, with quarterly cc's answering questions well with clear analyses of each of their companies.
They are not flashy, but there is good potential for growth. This, it seems to me, is rare when combined with such a consistent and large distribution. Speaking of the distribution, it would surprise me if IT will grow any time soon with the recent shuffling. But if Arnold is good, and their other recent acquisitions grow in the near term, I could imagine it going up again within 12-18 months.
Held CODI for 4 years now and have ridden its ups and downs. It can be a good cap gains play here, but patience is more rewarding. CODI is a good place to stash some cash for dividends and also have some potential for growth. The current price is reasonable and CODI is beating expectations after a year of struggle - still, I made in that year a good chink of change from the dividends and for 2010 was able to trade in and out with some nice capital gains. All in all, it is in better shape now than a year ago and I am optimistic about its potential for pps appreciation. Looking at $17 myself before I think it's getting ahead of itself.
Hbc, I only hold 100 shares at 10.16 since 1/20/09 & appreciate the reliable quarterly dividends, just a small time trader, my opinion, if you are looking for quick profit this probably is not what you want, as you now about three new aquisitions for CODI in the past six months, if these pan out we should see a share price increase, sounds like you know about this last aquisition than we do. I saw on CNBC where the furniture business is getting better, this has been negative for CODI, hopefully better days ahead, I believe it is a buy right now, GLTA.