Thursday, January 12, 2017 7:14:36 PM
COV.V - Case for double in 2017...
...is very well laid out. Not a zip code changer in 1 year, but thought I would post here anyways.
Covalon came out with this PR about a week ago which suggests that Q1 of 2017 should generate positive EBITDA, and earnings (net income) which should put COV.V on Canadian smallcap fund managers radar:
http://ir.covalon.com/phoenix.zhtml?c=183092&p=irol-newsArticle&ID=2233328
I found this post below which confirmed what I saw in my DD (65-70% gross margins). This investor has been following Covalon longer than me. I started tracking once a few people picked Covalon for either the last or second last SKILLZ Pick 3 contest.
He is expecting $CAD 6.5M in total opex in F2017. Total opex for F2016 is tracking towards $CAD 6.1M (4.6/75%)
Covalon could technically come down to the $1.90 level but the analysis above is quick to do any I am sure many other investors are thinking the same so I put in my order at 2.15 today which was filled. Pretty thinly traded too.
Note to get to the $CAD 0.30 in earnings the investor divided $6.5M by (14.422M shares o/s @ June 30 + 5.793M warrants = $20.2M FD shares) = $0.32 in earnings. The 14.422 includes shares issued up to June 30 for conversion of convertible debt. Covalon is now det free with $CAD 3.1M of working capital at June 30.
...is very well laid out. Not a zip code changer in 1 year, but thought I would post here anyways.
Covalon came out with this PR about a week ago which suggests that Q1 of 2017 should generate positive EBITDA, and earnings (net income) which should put COV.V on Canadian smallcap fund managers radar:
http://ir.covalon.com/phoenix.zhtml?c=183092&p=irol-newsArticle&ID=2233328
I found this post below which confirmed what I saw in my DD (65-70% gross margins). This investor has been following Covalon longer than me. I started tracking once a few people picked Covalon for either the last or second last SKILLZ Pick 3 contest.
He is expecting $CAD 6.5M in total opex in F2017. Total opex for F2016 is tracking towards $CAD 6.1M (4.6/75%)
Covalon could technically come down to the $1.90 level but the analysis above is quick to do any I am sure many other investors are thinking the same so I put in my order at 2.15 today which was filled. Pretty thinly traded too.
Note to get to the $CAD 0.30 in earnings the investor divided $6.5M by (14.422M shares o/s @ June 30 + 5.793M warrants = $20.2M FD shares) = $0.32 in earnings. The 14.422 includes shares issued up to June 30 for conversion of convertible debt. Covalon is now det free with $CAD 3.1M of working capital at June 30.
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