Behind The Numbers – Coda Octopus (CODA)

Over the last four months, shares of Coda Octopus (CODA) had been on a stellar run, going from approximately $5 to just over $8. Unfortunately, we saw a high-volume selloff in yesterday’s session after the company reported its Q4 earnings. Was this pullback warranted or was it simply profit taking?

First off, CODA is likely a stock that you’ve never heard of before. They operate through two main segments. First up is Marine Technology, where they are a solution provider to the subsea and underwater market. It owns proprietary technology including real time volumetric imaging sonar technology and diving technology, both of which are applicable to the underwater defense and commercial markets. Its second segment is Marine Engineering, where they are suppliers of embedded solutions and sub-assemblies which they design and manufacture and sell into mission critical integrated defense systems such as the Close-In-Weapons System (CIWS) for Raytheon or Northrop Grumman’s Mine Hunting Systems Program.

From the company’s 10-K filing: “Our volumetric real time imaging sonar technology and our Diver Augmented Vision Display (“DAVD”) are our