Bullboard - Stock Discussion Forum Covalon Technologies Ltd V.COV

Alternate Symbol(s): CVALF

Healthcare Biotechnology

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... see more

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TSXV:COV - Post Discussion

Covalon Technologies Ltd > Highlights from Today's Conference Call

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Post by BCONTVentures on May 31, 2021 9:52pm

Highlights from Today's Conference Call

Some great points from today's conference call on Covalon's Q2 Results (from ceo.ca): (Thanks to @stockgains and @KingKong)

 		@BCONTVentures Results seem to be improving, looking foward to the conference call and applicable updates.
 		1
 		31 May 2021, 07:52

 				 
@stockgains@BCONTVentures. Agreed. Reassuring to see things are getting better
 		1
 		31 May 2021, 08:05

 				 
@stockgainswas anyone able to listen to the conference call?
 		1
 		about 10 hours ago

 				 
@Latetothegamerht
 		0
 		about 10 hours ago

 				 
@BCONTVentures@stockgains I listened to the conference call, Brian Pedlar and Danny Brannagan chaired it. Brian sounded positive and reiterated that he believes COV is (significantly) undervalued. The strategic review is still ongoing, they will provide an update once that is complete. Revenues/product sales were up in Q2 to both the US and the Middle East. One person asked 2 questions (Howard - a private investor). It's worth listening to the conference playback. Things are ontrack for 2021 and they expect that FY2021 will be profitable. 
 		1
 		about 9 hours ago

 				 
@stockgains@BCONTVentures thank you for the summary. I will listen to the replay later tonight
 		1
 		about 9 hours ago

 				 
@stockgainsSo i just listened to CC. Sounds like things are improving. The two questions asked were good ones. My guess is that if the company thinks the shares are significantly undervalued at current price then they think the shares are likely worth double current price so $4-$5. total guess though. I am not convinced they will sell off the entire business though. It is good to hear Brian say 2021 will be profitable. The main issue with COV is they have lost all creditability so even if they say something positive about future prospects, I doubt many will believe it until it actually happens. Also, the company has lost the attention of many analysts. They used to call 2-4 analyst calling in with questions, now they get none 
 		1
 		about 8 hours ago

 				 
@BCONTVentures@stockgains Great points. The next 2 quarters will be "interesting" as more elective surgeries are completed in the US/more areas open up (from covid). Their product development also appears to be gaining more traction (as things open up more). Like you mention, their credibility took a big hit (years ago) and it will take awhile to rebuild that. 5i Research used to cover Covalon, perhaps they will start coverage again later this year. All in all, a positive quarter and Brian/management is confident for a profitable FY 2021.
 		1
 		about 6 hours ago

 				 
@stockgains5iresearch had was recommending to buy COV when it was $9 but they did predicate that on follow on contracts coming in after the SA deal, and as we know that did not happen. I like Peter Hodson from 5iresearch but his team got this one wrong so far. 
 		1
 		about 6 hours ago

 				 
@stockgainsCOV sp is a perfect example though of the fickleness of the investing. I own several other small caps that are valued at twice that of COV, yet COV is reporting profits and the other 2 are just barely breaking even. Big difference though is the other two have CEO's that have delivered to expectations and Brian has not (at least not in the past year of so). Also, COV has no control over what is happening at the hospital so your point is very key, that as things open up, elective surgeries will increase. I am a long term COV holder and still going to hold but it's been tough to watch this go from a $9 stock with lots of excitement after the SA deal was announced to one that is having to do a strategic review to unlock shareholder value
 		1
 		about 6 hours ago

 				 
@BCONTVentures@stockgains I too am a long-term shareholder (I remember buying in years ago at around $1.50/share, pre-$9 days, and buying up through $7). I am still holding and will look to add during the year (depending on how the upcoming quarters are/other developments occur). The biggest "problem" with COV was the $100 million Saudi Arabia (SA) deal not occurring "as expected" and then doing the CovaGuard acquisition based on the revenues from the upcoming SA contract. If they had of done an equity issue at the $7 to $9 range I think COV would be in better shape now. The last equity raise added more to the wound (no pun intended). The Board composition is encouraging and high insider ownership helps/is encouraging. 
 		1
 		about 5 hours ago

 				 
@stockgains@BCONTVentures you nailed it with your comments!
 		2
 		about 4 hours ago

 				 
@BCONTVentures@stockgains Thank you and thanks for your comments/points from the conference call. Let's see how the upcoming quarters do.
 		2
 		about 3 hours ago

 				 
@KingKongGreat quarter!Thanks all for your summaries of the call. I originally thought they'd sell the whole company (i.e., seeking for a buyout), but looking closer to what Mr. Amir Boloor said in the new release, it is now obvious to me they are probably just selling of the the IP properties or a platform: <li> Each strategic alternative is being evaluated and assessed as to its impact following any strategic transactions involving one or more of our patented intellectual properties, technology platforms, commercialized medical product portfolio and global sales channels. </li> 
 		1
 		12 minutes ago

 				 
@KingKongThe main purpose might be to reduce the debt they have taken on for some of those hasty acquisitions.Anyways, it's a good thing.
 		1
 		9 minutes ago

 				 
@KingKongBy looking at the chart, $1.8-$2 strong resistance bell. If this stays above $1.8 for a few weeks with volumes, we may see a breakout all the way up to $3.9 by end of this year.

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