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Covalon Technologies Ltd. (COV $2.28)
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BeWhere Holdings Inc. (BEW $0.89)
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Happy Belly Food Group Inc. (HBFG $1.65)
Q: Can you give your updated opinion on COV.V after its run since your comments over 6 months ago? If you were wanting to take a microcap position in these stocks, what order would that be in? Thx
5i Research Answer:
COV stock was up 190% last year and is now bigger at $88M. It is now cash flow positive on a 12-month rolling basis. EPS just reported showed a nice improved over the prior year, and more growth is expected in 2026. Sales rose 29% in the Q4. Cash is at $17M. We will give the company credit for ongoing improvement. We could see it owned now as part of a basket of micro/small caps. It achieved positive cash flow which is what we were looking for. Our ranking would be: BEW, COV, HBFG