Sales growth is important for any business, and in anticipation of future growth a company will increase its inventory base during a period in hopes of producing positive returns. However, if revenue doesn’t pick up, the inventory might become outdated and would only end up costing the business money. Thus, the following Canadian companies have experienced negative sales growth in the midst of heavy inventory expansion. Sooner or later, the market will pick up on this inefficiency, and punish the stock for lackluster sales and poor inventory management.
Calvalley Petroleum Inc. (TSX: CVI.A) – $0.95
Oil & Gas Exploration and Production
Calvalley Petroleum Inc. is engaged in the exploration, development and production of crude oil and natural gas. The Company is focused on exploration and development of Block 9 in the Republic of Yemen. The Company’s activities are carried out in two geographical segments: Yemen, and Canada. The Company is the operator of the Block 9 Joint Interest (JI) project under the Joint Operating Agreement among the Company, HoodOil Ltd., Medco Yemen Malik Ltd. and a subsidiary of the Yemen Oil and Gas General Corporation. Block 9 production is approximately 5,032 barrels of oil per day (bopd).
- Change in Inventory (1 Year): +118.42%
- Change in Revenue (1 Year): -52.16%
Nuvo Research Inc. (TSX: NRI) – $4.29
Pharmaceuticals
Nuvo Research Inc. is a specialty pharmaceutical company with a diverse portfolio of topical and immunology products. The Company operates two business units: the Topical Products and Technology (TPT) Group and the Immunology Group. The TPT Group has four commercial products, a pipeline of topical and transdermal proprietary drug delivery (TTDD) products focusing on pain and dermatology and four drug delivery platforms that support the development of patented formulations that deliver actives into or through the skin.
- Change in Inventory (1 Year): +94.85%
- Change in Revenue (1 Year): -29.07%
EnWave Corp. (TSXV: ENW) – $1.07
Biotechnology & Medical Research
EnWave Corporation (EnWave) is a Canada-based industrial technology company. The Company offers commercial-scale dehydration machinery for applications in the food and pharmaceutical spaces. It has been tested in a wide range of market areas including fruits, vegetables, herbs and spices, meats, cheeses, probiotics, enzymes and vaccines The Company has three commercial scale technologies, nutraREV, powderREV and MIVAP and three technologies in the pilot-scale stage: quantaREV, freezeREV and bioREV. Designed for the dehydration of discrete food pieces, EnWave’s nutraREV technology can provide similar nutritional content with improved economy, appearance and flavor over freeze drying, which is the industry standard for dehydration in many food applications.
- Change in Inventory (1 Year): +141.35%
- Change in Revenue (1 Year): -16.42%
Merus Labs International Inc. (TSX: MSL) – $3.02
Pharmaceuticals
Merus Labs International Inc. (Merus) is a specialty pharmaceutical company. The Company is engaged in the acquisition and licensing of branded prescription pharmaceutical products in Canada and internationally. It carries out business principally in Canada and Europe. The Company has products in the area of urology/women’s health and anti-infectives. Its products include Factive, Emselex/Enable and Vancocin. Enablex (darifenacin) or Emselex is used in treatment of urinary urgency and incontinence. Vancocin is used in treatment of C. difficile infection (CDI). Factive (Gemifloxacin Mesylate tablets) is the only Food and Drug Administration approved quinolone with five-day oral dosing indicated for the treatment of both acute bacterial exacerbation of chronic bronchitis and mild to moderate community-acquired pneumonia.
- Change in Inventory (1 Year): +122.99%
- Change in Revenue (1 Year): -7.87%
