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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: What are your thoughts on the bought deal private placement of 5M shares? If this was a less common occurrence it would be acceptable but SIS just raised money last year. On both occasions they wait for the share price to get to around $15/$16 and they decide to raise money and drive the share price down. They have set a ceiling on the share price and everytime it gets momentum they send it falling back down to earth. It seems to me that they raise the dividend to drive up the share price only to dilute our shares to get more money. If you need money why raise the dividend 20%, why not keep it the same or slight raise to save money and stop diluting and let the share price go above $16. I've liked mgmt but I'm starting to lose confidence in their decisions around growth. They have just ensured that the share price will fall to $14 tomorrow and stay in that range for months to come. Same as last year. Sorry, frustrated with the recurring dilution. Thanks
Read Answer Asked by Adam on April 02, 2019
Q: Follow-up on my earlier post today relevant to a possible reason for COVALON's 10% jump in stock price: The Zacks report a COV director sent to investors this morning (as an email attachment) is dated: March 18, 2019, and was authored by Brian Marckx, CFA, with Zacks Small Cap Research. While there may be an old Zacks report out there, this one appears to be new.
Read Answer Asked by RANDALL on April 02, 2019
Q: Jeffrey Mandel (a director on Covalon's Board) sent one of his periodic e-mails directly to COV investors. Today's message included a PDF attachment of a 25pp research document COV apparently commissioned from Zacks Small Cap Research in Chicago. Unsurprisingly, the analysis is glowing, which stated, in part, "We forecast Covalon to generate revenue and EPS of C$53.4M and C$0.13 in 2019 and C$64.5M and C$0.30 in 2020. We value Covalon using a combination of P/S and P/E methodologies. Based on analyst's revenue and EPS estimates of publicly traded companies in focused on wound care and medical supplies, infection control and vascular products, we calculate fair value of Covalon at ~C$11.2/share, or US$8.50 based on current exchange rates."
Read Answer Asked by RANDALL on April 01, 2019
Q: I've read both letters to shareholders over this board fight and would appreciate your view and possible outcomes to shareholders. My first opinion is that this activist shareholder wants an immediate , short term return of capital, and that their 4 nominees are not qualified.

Thx,
Chris M.
Read Answer Asked by Christopher on April 01, 2019
Q: My question is regarding Alcanna and possible private liquor revenue opportunities coming from Ontario. The Ford goverment has made bullish comments on some alcohol sales privatization in the future, the budget is releasing April 11th. Alcanna would clearly be a benefactor in this because of their expertise in the field. From their recent M&D " Should any other jurisdiction in Canada permit the private retailing of alcohol on a basis similar to Alberta which would allow an appropriate return on capital, such as Ontario, we would anticipate opening stores in that jurisdiction" Today there was a bloomberg article quoting regarding Ontario's budgetplans. "Ontario's finance minister says the province will be moving ahead with an expansion of beer and wine sales into corner stores, big box stores and more grocery stores, promising the move will cut prices and prevent any potential privatization of the LCBO." Do you see this benefiting Alcanna at all or would this be a negative in my case if I had been hoping for some potential good news and growth in Ontario for liquor sales? I know you like the company and does this change anything for you?
Read Answer Asked by Michael on April 01, 2019
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