Stockchase Opinions

Hugh Cleland, CFACovalon TechnologiesCOV.VBUYNov 23, 2007

A fantastic success story. Have technology in the wound dressing area. There are also rumours of a big deal coming their way. Fantastic management.
$3.49

Stock price when the opinion was issued

$2.20

As of May 28, 2026. Market Open.

medical services
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

PAST TOP PICK
(A Top Pick Aug 08/18, Down 78%) They had a $100 million contract from the Middle East, but the revenue in the deal has been delayed. COV had huge promise and now it's Show Me The Money. The revenue delay is hurting them. Also, they had a recent stock issuance. But insiders still own a big chunk of this.
WEAK BUY
Bandages and dressings / wound care. They made a few miss-steps recently. An overseas issue has been addressed. They signed some agreements overseas and the revenue is not yet coming in. Even if the contracts don't generate cash flows, it is already in the stock, but if money comes in there could be upside from it. They are working in other areas as well. He likes the trade-off
WATCH
He does not own this bio-tech company. He just does not follow it enough currently to comment. Management has changed so he hopes it will improve things.
WATCH
They make bandage products. They are developing new products all the time. A big contract in the Middle East is creating a chunky quarter result and raising concerns about Saudi Arabia geopolitics. Over the next six months revenues should increase so you want to watch for a while.
RISKY
He likes their potential, especially with a $100 million project in the Middle East (although Canada's relation with Saudi Arabia is strained). They make wound bandages and compete against companies like Johnson&Johnson. This should be a good year. They are debt free and are expanding their business in the US. He would endorse the management team. It is a speculative buy until they can bring forward more contracts to monetize their cash flow.
COMMENT
Essentially health care dressing, bandages and things like that. They have a big entrance into the market when they won a big contract in Saudi Arabia but now there are concerns with all the problems with that country. They have a foot on the US side now as well. Revenue is very good. It is high risk as it is a small name.
BUY
He considers it a quality company and worth owning. He likes the balance sheet and the product. The management company has sold companies before. Put it away and don’t look at it on a daily basis.
TOP PICK

This company makes wound dressings for medical devices and just won a $100 million contract overseas. Earnings growth is going to massively accelerate with the new contract. He wants to see them get another contract and they have good potential for growth in Europe. Yield 0%.

BUY

They make medical supplies, signed a large contract recently and are doing well. They compete successfully with companies like 3M overseas. The stock is not very liquid because there is one very large owner. It has risen recently, but if you own it, you should hang onto it. They surprise people with good news, which shows up in the stock price.

COMMENT

It is not a well known name at all. It is medical products. One investor owns close to a half of it. They are gaining market share. He is guessing they are a takeout play at some point.

WATCH

It is quite illiquid. They are a medical supply company that is beating out 3M on a number of contracts. It has a lot of promise. He is looking into it and thinks it will be worth buying.

COMMENT

Supply every type of thing that a company would need in a hospital such as gowns, etc. These types of businesses tend to be very stable

BUY
Has done tremendously well. They focus on wound care products, and coatings for products. The company has tremendous potential, they signed a deal with a large British company. Great opportunity, going to do well going forward.
BUY
An interesting little company. Have a wound care product. Also have intellectual property around coatings, basically silver-based, that prevents infection. As they get more partnerships on the coatings, the stock will move up.