GREY:CVHIF - Post by User
Post by
DiveEstheron Jan 09, 2017 2:43pm
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Post# 25684381
Behind the scenes
Behind the scenesEveryday I read about more consolidation and mergers in the healthcare space, and I look at Convalo and I see a hugely undervalued company, with great core assets, solid structure, and a model that is about to be proven a winner. If you're a large private equity firm or another major looking for acquisitions, now is the time they'll be eye-balling Convalo for a take-over or merger. In fact it wouldn't surprise me if the company goes into lock-down if the share price stays pinned down. It's too undervalued.
Possible news of a plan of arrangement sometime in 2017? With the lack of insider buying... are we already in an extended period of due diligence? Perhaps something big cooking internally that is preventing prudent management (with knowledge) from acting on insider purchases for fear of an investigation or penalty from regulators? Is there a confidentiality agreement in place or in the works?
I'm allowed to speculate (pure speculation) as much as anybody else. Just thinking out loud really...
With the upcoming shift in political landscape in the US, the deregulation and legalization of marijuana, the ever-increasing pressures and demand for services in the addictions treatment space... this sector, and this company, is a ripening and attractive target for either a private equity group or a larger public company seeking acquisition. Where there is money to be made, smart money will flow. I see guaranteed cash flow and revenue growth. The only legitimate argument anybody has presented against Convalo recently lies with a lack of trust with management. That all goes away in a heart-beat with a merger or take-over, or in delivering the goods -- via results.
I predict some of those large hands will throw down their bids, taking the ask at market price, and drive us upward very soon... particularly on news... can't wait for Q3 results.
Esther