I'm back 100% on the Covalon trainIt's been a trying time in their history. Covalon has had a few of these times, but leadership has always got them through it and come out stronger on the other side. I have been following Covalon for 6 years, but have only been invested for around 3 of those. After the Saudia Arabia spat about 10 months ago, I reduced my position substantially. Our biggest fear, concentration risk, manifested itself in a wild manner with the political risk of ME. Since then the company has done an amazing job diversifying away the ME region, all while keeping intact that business. US sales growth is accelerating nicely, even when you take AquaGuard out. It always takes longer than we wish, but I think the UK and Latin America could really explode in growth here soon.
Brian has been a reliable indicator on where the company is. He's proven to be a straight shooter and proven that when he's been resolutely positive, that there's substance behind that. Brian has sounded overly bullish a few times in the 6 years, and he sounded as bullish as he ever has in that last CC. It sounds like some hard work, years of hard work and collaboration are about to bear some fruit. Licensing deals could be the BONUS growth explosion many of us have long waited for here. We know they have been working behind the scenes for many years with some major device manufacturers. Brian sounded optimistic that something here is close to breaking our way.
I haven't been enthusiastic about Covalon for 10 months, but I'm now back on the train with 100% full position. I believe we'll see $15 within 18 months, possibly sooner if big news breaks any day.