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“Company has a very attractive 9.6% free cash flow yield”

SmallCapPower | July 15, 2016: Water, water everywhere … but does it make for a good investment? If you’re talking about one of Selective Asset Management President Robert McWhirter’s top picks, the answer would be “yes.”

<img class="alignleft wp-image-18206 gr-progress" src="http://smallcappower.com/wp-content/uploads/2016/07/Capture.png" alt="SciVac" width="134" height="73" />In a June 16, 2016, interview with SmallCapPower, Mr. McWhirter mentioned that he liked a company called Ovivo Inc. (TSE:OVI.A), which provides equipment and technology to treat wastewater for municipalities and the industrial markets, as well as producing ultra-pure water for the electronics industry.

Mr. McWhirter liked Ovivo at the time because, firstly, its cash comprised about 20% of its market capitalization.

The Company’s fiscal 2017 earnings are expected to grow by about 13% while forecasts are for a 35% earnings increase in fiscal 2018.

“At the moment the Company has a very attractive 9.6% free cash flow yield and it trades at a 7.9 times Enterprise Value/EBITDA on a trailing basis. EBITDA has grown by 114% year over year,” he told SmallCapPower.

On July 13, 2016, Ovivo announced that it has agreed to be acquired by SKion GmbH for a purchase price of $4.00 per share in cash.