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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: This financing news really rubs me the wrong way. The issue price is deeply discounted and the units come with a warrant that is also really cheep assuming the company has any type of decent future. The insiders are participating. This looks like the insiders are taking advantage of the weak current share price to stuff their own pockets and the pockets of their buddies with cheep shares and warrants at the expense of longer term shareholders.
Read Answer Asked by Joel on August 02, 2019
Q: COV has a history of private placements, this includes in 2013, 2017, and now. And insiders can buy provided the Venture exchange provides waivers, including fair value. With 22M common shares outstanding, the just announced offering waters down current shareholders by 10% and if the warrants are exericed, another 10%. WOW, management friendly or what?! Has management stated the use of these funds? And is management attempted to put a floor to the current decline? And as for the warrant exercise price, about 17.5 % higher the offer price, and over 5 years, is management saying the COV price will be range bound for years to come?.......oh, so many un-answered question......wish they would sit down with me for a java talk and provide direct responses!
......bewildering, eh?!.......Tom
Read Answer Asked by Tom on August 02, 2019
Q: Regarding COV. I don't usually play with this stuff and I'd only be thinking about a 1% or so position. But there seems to be an actual business underneath this mess. So lets assume the Saudi business is gone and the rogue salesman pulled off whatever he was trying to pull off. As I read their reports that leaves 60% of their business in the US. So the question is where does that leave us going forward ? And how to assess managements ability to grow from there ? If it drops to the $2.00 range is there some value there ?
Read Answer Asked by Garth on August 01, 2019
Q: Covalon has been beaten down considerably in last few months and I see from a few of the questions that 5i has been beaten up a bit over past recommendations on it. I think many investors are similar to myself in that when a trade works out well it is because I am very smart and when it doesn't work out well it is because someone else is not :-). However looking at Covalon it still seems like there is a good path forward for them but will take longer than originally anticipated. At today's depressed pricing would you consider them a good option from a longer term perspective?
Read Answer Asked by Bruce on July 31, 2019
Q: I have to express my concern regarding your response to Dave re: COV on 7/29. The comment that you take a "Portfolio Approach" and 5I "will not enter into debates on individual stocks" is the issue. My concern here is that I do not buy ALL of the stocks in a particular portfolio but do own many of them. By the sheer presence of a stock in a 5I portfolio suggests to me that you approve of the stock and are recommending it. I have held onto stocks far too long because it was retained in the portfolio. I consider if a stock remains in one of your portfolios it is a "Hold" recommendation from 5I. Am I wrong?

Carl



Carl
Read Answer Asked by Carl on July 30, 2019
Q: I, like Medison, am fed up with Knight and Jonathan Goodman. I voted to keep him in and I thought that after the battle, he would try and create some shareholder value. If Medison can call a shareholders meeting, I think a lot of shareholders will side with Medison this time around. A very frustrating stock and I know that if one is frustrated, they should sell. Do you think we will ever see some move to the upside in Knight in this century, or maybe Knight is for the great-great-great-grandchildren. lol
Read Answer Asked by Helen on July 29, 2019
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