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No not buying. Those are options ( D for derivative)
My guess is it's normal options that have been granted over the years and now with the new auditors they are getting all their reporting fixed up.
Still a good sign to me, but not like if management had just been making major purchases on the open market
New to the stock here. I wish I hadn't bought so fast the past few couple months - I'd be loading up at these lower prices.
The PR's for the new supply agreement and the hiring of Mirus ( which was discussed in the Q2 financials) came out at about the same time after the stock had begun getting some attention. I think it's possible the agreement was made quite some time ago, and is maybe the reason for the growth in sales the past several quarters. It does however call for year over year volume increases.
I'm bullish on the company, just disappointed.
MPH.V Medicure. I agree 100%. There should be some good numbers coming out next year. Also the company has about $100 million in accumulated losses.
Things are really interesting here. Growth with good GMs. It sounds like their products go into medical devices which are years in the development and FDA approval process. So management probably has good visibility into where the business is headed.
I did some research over the weekend. Back in it's heyday the company was trying to develop an artificial heart vessel for use in bypass operations. It never panned out but they've done a great job keeping the share count under control all these years. Maybe they had a good appreciation of the company's value all along.
Michael Szycher, who founded the company just came out with new book on Entrepreneurship last year.
Thanks KIK for posting about this on value microcap. Of course I wish I had been looking at this a month ago, but better late than never!
Sorry to see Covalon's disappointing earnings. I wasn't as confident as some going the quarter so it wasn't so much of a shock to me. The PR actually seems to indicate futures deals are coming down the pipe.
More interesting right now is MBX, I'm holding a bunch of shares and I think we will get interesting news on Lumisort development in the next couple of months.
You may want to take a look at MAMS software group. This software for autoparts stores business has an investor presentation on its website and is very interesting right now.
Nice post Zen, Covalon also has introduced ColActive transfer which is targeting the Negative Pressure Wound Therapy market. I did a little reading on NPWT and it sounds like a fast growing method in the wound care field.
I've sold some shares at recent prices over $2, but I still have a lot of stock. I just don't have a good handle on the competitive advantages of the various products and have had zero success in reaching management.
Wish I'd never sold a share of Biosyent!
Nice catch on covalon. I had a 5000 share stink bid fill yesterday and just entered another. I too came across that site but didn't delve any further and see how many other Molnlycke products have their own site. Nice take.
Microbix is a waiting game. There's a lot of warrants and options hanging over it so any rally is going to be dampened. I wish I hadn't bought as much as i did at 50c. And I'm half tempted to try and book some losses at 40c, just don't want to wait another 30 days. I hate that stupid wash rule.
Looking forward to results from the prototype later this year. That will be huge if all goes as planned. I backed off my position a little. My thinking was that there will be opportunities to pick it up cheap on dips before the actual instrument has been proven. We'll see.
I've been buying Covalon this past week. I think IV clear and Surgiclear will be big with Molnlycke. Their sales have been strong right out of the gate and COV should get a significant cut of it with the supply agreement. And with the 15MM in tax losses off the balance sheet, COV is reasonbly priced even by value investor standards.
best
Yeah Zen, the Microbix case is really compelling. The first couple of times I looked at MBX I didn't understand what the big deal is. This piece of research helps explain the huge opportunity in the global semen market:
http://www.eresearch.ca/_report/MBX_113012-B.pdf
I consider it really positive that they have moved beyond the proof of concept phase and are now building their semen instrument and that the patent has been challenged and that was in MBX's favor.
Sexting technologies is pretty big I think, but it's not like they can just go out and build the equipment themselves since they have already tried to get MBX's patent thrown out. I wonder if that is the argument Novartis is making: They started using the technology, and are now claiming they developed it on their own.
I don't have any special knowledge of patent law or how these things play out. But the developments all seem to be really good here. I have significant positions in both. After selling half my initial shares in COV, I re bought sporadically towards the end of the year. I'm really surprised no significant selling has come in to the market for it.
Thanks for your table pounding on COV and MBX.
Like a lot of people, I've been trying to be patient and pick up COV stock as shares came on the market. Since none has Ive had to grab the offered shares every now and then. Things are really sounding good out of Covalon.
Microbix sounds great too. They are building the prototype now, so it sounds like the technology has proven itself. Higher fertility with sorted semen. That could be huge! 15% royalty.
These investments are a stretch from my preferred value oriented investment style, but this is all large market stuff and the upside potential is tremendous. I just don't have much experience evaluating new technology development.
Here's to a couple of multi-baggers!
Hi Zen, thanks for posting about Covalon. How are you figuring the share count on it?
Ob my math, the effect of the convertible financing dilutes the share count by about 10 million shares. Add that to the 10 million already outstanding and another million or so for stock options and warrants which had already been issued, I'm counting around 21 MM shares fully diluted now.
I'm just puzzled because I came across your post yesterday in the Canadian Kitchen valuing the company at $50MM.
If this is right the financing was absolutely horrible. $750K in financing to double the share count?? I can't believe the awful terms these companies get when they need access to cash.
Someone wrote a very detailed compelling bull case for the company on seeking alpha. I think new investors are moving into the stock. It sounds like the acquisition is going to be a home run. - I just don't know why they got such terrible terms.
This is more than a 10 bagger from where I started buying a couple of years ago. I remember buying ten thousand and fifteen thousand shares at a time at .26. Wish I still had the 280K shares I had a year ago. Oh well.
Thanks so much Zenlunatic!
Thanks Hank, I 've been off the grid, camping along the California coast and missed alot of this run up. Probably a good thing as I would have been tempted to begin selling too early.
RX and CPHMF, both of which I bet big on, have been a hell of a one two punch for my finances. The volatility in Biosyent's share price shook me out of over half my position, but still I have a large position in the company.
I'll pass along any ideas I get. Tough to find bargains in this market. I think Munger said something like he hopes to average one good idea every two years.
I never did listen to that ISDR call. I sold most and bought more Cipher. The second half of this year should be good for this stock even though it's been on a tear the past year.
I wish I had really loaded this last year before the price move, but I didn't hear about it until it was a three dollar stock. Still, the earnings are not hard to forecast and the value of the company will be higher with some more growth out of absorica.
Hey Mike, do you have any idea what coporate tax rates are in Canada so we know what to expect as far as taxes? It's been a while since I looked at biosyents financial statements. But don't they have a tax asset now? Can that be used to offset any more future ttaxes?
Thanks in advance.
Nice results for ISDR. The PR sounds really optimistic - I haven't listened to the CC yet. It's a great business but I have a small position, couldn't get over the concern that they compete with some much larger much better financed competitors. You might want to take a look at Cipher pharma, CPHMF.
CPHMF - I bought more this morning. I paused after buying my initially figuring I'd wait for a pullback which never came.
According to the CC the Isotrenton market in the U.S. has grown to $800MM of which Absorbica is at 7.5% market share right now after five months on the market. I think peak sales of Absorbica could be much higher than the $200MM figure in Jason Napadono's March Zachs report. Being the only promoted Isotrenton in the US, and having the dosing flexibility, I don't see why this shouldn't become bigger than Clarivis which is a $350MM product.
A double this year should be easy. This is easy money.
DND.TO / CPHMF This is a small Canadian Pharmaceutical which was mentioned on microcap kitchen the other day. I would post this on the VMC board, but I dont' have a premium membership...
The company has a few products approved, selling and growing very rapidly. The estimate for revenues of Absorbica, which began selling last Nov. are $200 MM at maturity. Cipher ought to get fifteen percent of that as royalties I think.
http://www.cipherpharma.com/files/DND%20January%202013%20Presentation%20-%20FINAL.pdf
I count 26MM shares fully diluted.
About 15 million in cash, no debt.
This is like a Biosyent on steroids.
Thanks, I'm waiting for a call back now. I share your thoughts about the nature of this - I usually don't invest in companies losing money and in need of financing to fund operations.
If we're at 8MM shares now this is a company with a 3 million dollar market cap. The risk / reward profile here is too aysymetric. A 10 MM market cap would give us a 3 bagger.
I suppose things will work themselves out this year. If the company can get through the next six or nine months and get some revenue growth and reach the point where it's not needing financing so badly, I think people will accept the company and bid the price up accordingly.
The risk is that the company needs more financing and cannot get it at reasonable cost. With Frost and any other large investors who may have recently become involved I think the company will be able to get financing.
Hear anything back yet? I don't have a good handle on the financing situation ( convertable debt, etc. ).
I'm taking the heavy volume as a good sign. Hoping that some bigger money is taking a piece of this two to three million dollar comapny, which ought to be good.
Any idea of who has owned this and where all these shares are coming from? I listened to Nov's CC the other night and some of the shareholders sound like real bozos. No offense if it's anyone on here....
Ugh PCYN - I actually sold some into the end of last year trying to tweak my tax bill. Still won't be surprised to see the company get it's day eventually.
I hadn't heard of FIGI before today, but it looks like a company with a pretty good niche.
Well I guess Hummingbird was the big seller. There are a couple other ones it is selling out of. There's a 13 D out on FIGI as well.
No idea, I started buying this morning and the ask never changed.
ELST .25 The company is a cashbox with a couple million in the bank which can be bought today for 25c. ( 5 million shares o / s) Small and maybe won't change anybody's zip code but I don't see how there is much downside from here.
ISDR $3.15 Earnings out. They are really good. This is a recurring business model with ~5 percent of the corparate XBRL issuer market. Share availability is tight.
http://finance.yahoo.com/news/issuer-direct-reports-200-increase-123000821.html
Things have really quieted down - with both the action of the stock and volume, and 'chatter' about the company. I am a little surprised more haven't gotton on board. I know there are companys with lower PE's out there, but here you can have confidence in what will be going on one year or three years from now.
Any idea on who ran the price up last month? I wrote a little blurb on the company and posted it on Ian's website. Never heard back, guess he took it down.
Yeah I am. I bought more back in May and wondered who that was selling.
Another year came and went. Are you still in the stock?