Innova Technologies Corporation (IVO - TSE), a stock to watch.
Innova is in the process of commercializing technology originally
developed at the university of Toronto. Their primary revenue
producing product is the Endopore dental implant. A patented dental
implant that is claimed to be superior to earlier generation products
that currently dominate the market. They have established an
extensive direct sales network in North America and distribution in
Asia and Russia and are now penetrating the Latin American and
European markets (through distributors).
I have project forward revenues for IVO based on a 10% quarter
to quarter sales growth and a 40% contribution to earnings from
incremental sales. My spreadsheet:
Innova (IVO TSE)
Q/Q-1
Period Sales Earn Op Cost Sales Notes
1,000's %
98Q2 2,400 24 1,592 14.1
98Q1 2,104 (221) 1,636 10.9
97Q4 1,897 (383) 1,668 89.5 acquisition
97Q3 1,001 (336) 1,017 -6.6
97Q2 1,072 (218) 959 0.9
97Q1 1,062 (193) 938 45.7
96Q4 729 (410) 912 13.7
96Q3 641 (282) 743 -3.5
96Q2 664 (160) 25.8
96Q1 528 (137)
Products: Dental Implant, unique patented technology
Telescopic Bone Plate
Resorbable Biomaterial
Attachments for implants
Acquistion: Attachments International
Gross Margin 65%+
Year End: Dec 31
Shares 26M
Recent Price: 0.66/share
Market Cap: $17M
P/S Trailing: 2.3
Forward: 1.5 (2,400, 2,600, 2,900, 3,200)
(estimate 10% quarterly growth)
P/E Forward: 24 (24, 100, 220, 350)
(estimate 40% incr sales to earnings)
Notes The number of Innova customers in North America
continues to grow at an impressive rate, increasing fully 58
percent since the end of 1997. (from 98Q2report)
Growth rate of the implant business
in N.A. 6-8%, intl.: 10-12%
The boomers have not affected demand very much yet
(but we will)
IVO has 1-2% of the North American market,
several competitors have 10 - 20%
IVO expansion is occuring in Europe and Latin America
Asian and Russian sales are flat
Recently raised $2M convertible debenture at $1.00/share from
Royal Bank Capital Corporation,
The VenGrowth Investment Fund Inc.,
and Trillium Growth Capital Inc
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