Covalon Technologies Ltd V.COV

Interesting

[ARIMA11]

Good Quarter but the cash balance continues to go down (9.1M) compared to (22.1M) after the sale of Acquagard in FY2021. If they continue to use 2-3M a quarter they will need to raise funds in the coming year. And they seem apprehensive about a buyback... Hence the question.

One one hand Covalon is confident but its somehow apprehensive about a buyback...

[ARIMA11]

On one hand Covalon is confident but its somehow apprehensive about a buyback... 

[Stonksonlyup90]

In addition to a share buyback you'd think that we would see insiders step up and buy on the open market if they had that much confidence in the stock! When's the last time we saw an insider buy, over a year ago?

[ValueGuy1965]

My understanding from a few years ago is that the larger shareholders are prohibited from buying more shares because they have such high ownership already.  The regulators sometimes indicate when a large concentration of shares is in a few hands, that those larger investors cannot purchase shares in the open market without triggering some sort of takeover bid.  Given that the shares

[mcappro]

Where are they using $2-$3M per quarter?  The recent annual performance shows just over $1.1M in Adjusted EBITDA loss (cash burn) for the 9 months for fiscal 2023.  The company has a strong balance sheet and no debt, increasing revenues and good gross margins.  I don't see a lot of downside risk here, albeit the microcap market is unpredictable and does not reflect the value of

[ARIMA11]

Look at the cash balance on a quarterly basis.... It's not going up... :)

[mcappro]

That doesn't mean they need to raise money.  

[ARIMA11]

Let's see if they do it. They certainly have not continued it since it expired... https://ir.covalon.com/news/news-details/2022/COVALON-TECHNOLOGIES-LTD.-ANNOUNCES-NORMAL-COURSE-ISSUER-BID-05-25-2022/default.aspx