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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

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
Q: Hello 5i Team. My understanding is that there are 2 significant issues here. US tariffs, and recent miss on performance. I've just recently started managing my own rsp, I'm finding mg to be the toughest decision I've had to make so far. I read that the stock could drop by as much as 30% if the tariffs go through. I've read mostly positive feedback from 5i on MG. Can you help quantify the risk over the next 2 months to a year?
Thanks
Read Answer Asked by Dan on August 24, 2018
Q: I had just recently bought this company in my TFSA prior to the 2nd quarter earnings report, and the stock has dropped over 25% since my initial purchase. It would seem that 5i still likes the company do you consider the market reaction overblown, would you consider averaging down with this company or would you hold the position for the longer term.
Thanks Tom
Read Answer Asked by Thomas on August 23, 2018
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