Subscribers will know that when Codan announced their original profit downgrade, I took the opportunity to buy shares from panic sellers. At the time, I described the position as a "research position" and subsequently, I did my research. One disturbing piece of information that I found was that the Chinese may have had access to Codan's secure radio codes.

About a month ago I wrote this article in which I estimated that I would have to buy shares in Codan at $1.81 in order for the investment to meet my required return on investment, assuming that results largely reflected my predictions in this update to subscribers. I also examined some of the risks facing the company.

The purpose of this article is to follow up on comments I made available to Newsletter subscribers about a month ago.