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Covalon Technologies Ltd V.COV

Alternate Symbol(s):  CVALF

Covalon Technologies Ltd. is a patient-driven medical device company. Through a portfolio of patented technologies and solutions for advanced wound care, infection prevention, and medical device coatings, the Company offers gentler and more compassionate options for patients to heal with less infections, less pain, and better outcomes. Its solutions are designed for patients and made for care providers. It leverages its patented medical technology platforms and expertise in two ways: by developing products that are sold under Covalon’s name and by developing and commercializing medical products for other medical companies under development and license contracts. It provides a range of specialized medical devices, medical dressings and advanced medical technology designed for infection prevention, complex wound closure and perioperative care. Its perioperative care solutions provide antimicrobial protection of pre-operative skin, through postoperative incision care to scar prophylaxis.


TSXV:COV - Post by User

Bullboard Posts
Comment by zenvestingon Jan 03, 2017 4:21pm
131 Views
Post# 25663330

RE:RE:RE:High Gross Margin Generate strong profits

RE:RE:RE:High Gross Margin Generate strong profitsHey Joe, "professional"....gosh thanks.....I didn't realize some would be so impressed with a little correct grammar and punctuation. I'm sorry if the message struck you as hype, but I actually just considered it a more qualitative discussion of how the market values growth....and today's news certainly forecasts an abundance of growth for their FY 2017. As for earnings, I agree with The Rock that COV's gross margins give incremental revenue increases significant earnings power, but also stated that I believe his earnings expectations look a little high as we see the company already beginning to increase investments in new personnel. Yes, I remember how high this stock spiked last summer, it was my second roundtrip journey riding this up to near $3....and back down. I have kept my position here for 3 years because the low O/S and low float make this a highly leveraged, volatile ride....and I don't want to be in the outside looking in if/when this company lands a big licensing agreement, let's some of this revenue growth fall to the bottom line, or otherwise proves it's worth the higher valuation ratios its US peers receive. If you look to the competition in this market like ALQA, DSCI, MDWD, or even SRDX....you might see that posting a profit would actually make Covalon fairly unique in this market.....but these competitors that loose fistfulls of money are often valued at a multiple of 3-5 times sales.....so it seams growth is actually the primary driver of value in the advanced wound care market. A US listing sure would be nice to get us on a level playing field with our competition.....but would increase public company compliance costs and eat into those bet margins that are oh so valuable here in Canadian markets! Please forgive my lack of paragraph breaks in this post, for some reason they are not recognized when posting from my phone, but I hope you find all my grammar and punctuation to professional standards......I am after all a professional consultant and writer in my field of employment. Whatever the case, 2017 promises to be a really interesting year here.
Bullboard Posts