To: Mario :-) who wrote (38477 ) 9/2/2015 4:46:05 PM From: zen_lunatic420 1 RecommendationRecommended By
Read Replies (1) | Respond to COV.v you didn't ask me, but Covalon doesn't issue guidance. It seams you might be reading too much into the standard verbiage in the "Financial Risk Management" section of the quarterly report and/or the "Risks and Uncertainites" section of the MD&A, quoted below in italics: Covalon achieved annual profitability of $2,401,769 for the year ended September 30, 2014; and a loss of $94,957 for the nine months ended June 30, 2015. There is no guarantee that Covalon will be able to consistently achieve profitability in the future. Covalon has never paid a dividend on its common shares and does not expect to do so in the foreseeable future. Covalon’s business and prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in new and rapidly evolving markets such as healthcare. Covalon cannot predict if sustained profitability will ever be achieved and, if it is, whether or not it will be sustainable on a quarterly or an annual basis. Even if Covalon is not able to successfully further commercialize its products, Covalon believes that it has sufficient capital to fund its business and operations through at least fiscal 2015. However, Covalon may need to raise additional capital in the Covalon Technologies Ltd. MD&A Q3-F2015 Page 17 of 20 future. Additional financing may not be available, and even if available, may not be available on acceptable terms. That being said, this stock is not a traders stock, but as a long-term minded investor who has done extensive due diligence on their technology and markets....I don't see many better opportunities for a patient investor to buy something with such strong prospects to grow by multiples. I feel fairly certain it's in the cards for this company, but couldn't tell you if it will happen in the next three months or three years. Given the low share count, I prefer to keep it in my portfolio instead of the watch list.
