| | | COV: We will get to see some numbers before month end, I'm looking for some growth in their wound care product sales segment, but not too sure what to expect as far as profitability goes.
This company may not fit the preferred model here of consistent early profitability, but I personally believe, share for share (we only have 20M fully diluted), this little company has more potential than most any other company we follow here....and I also hold a significant position in MBX (fully diluted ~ 100M), who admittedly does a better job of getting their story out and consequently is a little easier to follow and hold.
While Covalon's revenues are lumpy and the company may not be consistently profitable at this point; Brian Pedlar has made it clear to me that they are continuing to make investments in growing their Intellectual Property and expanding their R&D collaborations with an aim for much bigger revenues and profitability down the road, and specifically said they've got things under development in the lab that he believes could take them back to their former highs in the $30-$40 range.
So that makes this a bit more speculative.....and this company is more focused on customer and partner relations than investor relations, so they really don't tell us much compared to some other R&D focused plays, but I believe this will work out well for those of us who are patient and do our homework. I've recently reviewed their employees on LinkedIn to see that that they've hired two new PhD Biomaterials Scientists and a Manager of Finance since August 2014, but am not going to post links out of respect for these people's privacy. I also found that one of their long standing scientist's claims to be working on a "Regulated Drug Delivery Catheter" since 2010 and a "Self-sterilized surface" coating since 2011. If one of these technologies can be validated with a partnership with a big device maker and/or a commercial product from one of their previously announced R&D collaborations, this company will be valued by multiples more overnight IMO.....these are potentially game changing technologies with wide applicability across the medical device market....but again, us investors are a low priority for the information flow on this results based company.....who has already shown the merits of their technology with collaborations that resulted in successful product launches with Medline, Smith&Nephew, and Molnlycke.
I also have found that the company's trip to Medical Fair Asia seams to have helped them find another significant distributor for their ColActive products, highlighted on their front page here:
smhealthcare.com.my
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