While John Q. Public is reminded to cherish his health, particularly his lungs, health-care companies both great and small were the ones primarily in the spotlight Tuesday.
The health-care sector sagged 0.5% in New York, while in Canada, the subgroup took off like a Saturn rocket, gaining 8.4% Tuesday afternoon.
One health stock of note from south of the border is New York-based Conversion Labs, Inc. (OTC: CVLB). The stock did some upward traveling Tuesday after the direct-to-consumer telemedicine and wellness company reported results for the first quarter of its fiscal year.
CVLB boasted record revenues of $4.3 million, up 59% versus the prior-year quarter.Gross margin totaled $2.5 million, up 28% versus Q1 2019. Even so, net loss was $2.4 million or $(0.05) per share, as compared to a net loss attributable to common stockholders of $0.7 million or $(0.02) per share in the first quarter of 2019.
However, according to Tuesday’s news release, based on the strong quarter and continued acceleration of the business, management increased revenue outlook for 2020 from over $30 million to more than $36 million.
Conversion’s brands combine virtual, 24/7 medical treatment with prescription medications and unique over-the-counter products.
The stock did not have fantastic action, trading in 192,000 shares, not enough to bring the price off its perch of 31.5 cents.
In Canada, Micron Waste Technologies Inc. (CSE:MWM) entered into a Definitive Purchase Agreement to buy all the remaining shares the shareholders of Covid Technologies Inc.
Micron has had its eye on Covid, the personal protection equipment ("PPE") industry, since mid-April, and has and anticipated demand for PPE. Micron is of the view that the demand for PPE will increase in the future as Canadian and worldwide economies, education and securities re-open. The anticipated demand for PPE the Company believes will transcend the current need arising from the pandemic and will become a requirement of the "new normal".
Whether the news proves enough to shake Micron from its price setting of 16.5 cents, it’s likely that, judging by the volume of 231,000 shares, the stock will turn heads and soon.