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Investment Q&A

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Q: Further comment about press releases sent directly to investors from Covalon CEO Jeffrey Mandel: I own that stock. If memory serves, the stock hit a high of 9.15 on August 6 and then appears (in my naive understanding) to have become the victim of a short attack. Trading was halted and IIROC then asked the CEO what material change(s) -- if any -- might account for the abrupt drop -- which hit a low of 6.26 (nearly 40%). As an investor, I took Mandel's first direct emails (which began at that time) as reassurance to investors not to panic and dump the stock. COV has recovered somewhat since then, but I'm assuming that Mandel might be sensitive to the potential of another assault against his company (e.g., SHOP) and may want to inform investors directly of positive progress being made -- which include the last couple of messages that just arrived in my inbox.
Read Answer Asked by RANDALL on August 29, 2018
Q: Since buying COV, I've started receiving regular emails such as these 2 yesterday:
"Covalon Announces Another Milestone Quarterly Profit on Excellent Third Quarter Financial Results"

"Covalon's excellent earnings listed on Globe and Mail small cap movers list"

I have never received these types of emails on this regular of a basis from other companies that I own. Should I be concerned about the promotional nature here?
Read Answer Asked by Andrew on August 29, 2018
Q: Just a comment to add to your comments about NFI in a previous question.
While the 40 electric busses ordered by Montreal & Laval may not be significant as compared to the 4,000 they have sold in the last 12 months,
the more important thing is breaking into the Quebec market (probably the
2nd largest market in Canada next to Toronto/Ontario). Lets face it Quebec is notorious for paying whatever price to support Quebec companies. Should these buses perform well it could be very beneficial to NFI.
Read Answer Asked by Scot on August 28, 2018
Q: Hi 5i,
I know that speculating on takeovers is not something you advocate but do you think Covalon may be heading for a buyout? The recently announced licensing agreement with “a large global medical company” reminds me of the deal that Pure signed with Xylem, leading to the takeout of Pure less than a year (I think) later. It looks like a ‘test drive’ of marketing COV’s product and services suite. If the larger company becomes convinced it can sell the product, preserve the margins, and scale that across a larger market, a buyout is a likely next step, isn’t it? Plus, the described global medical company is presumably not Canada-based. For a non-Canadian acquirer, the perceived Saudi-Canada relations risk would likely be a non-issue. Thanks!
Read Answer Asked by Lance on August 24, 2018
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