In the Oz this morning if anyone missed it. Covata (CVT) 27.5c...

In the Oz this morning if anyone missed it.

Covata (CVT) 27.5c

Covata head Trent Telford says the secret-squirrel encryption play did not need the $7m to be raised via a placement to fundie Fidelity.

But in small-cap land one never says no to a wad of cash, especially when it’s proffered by one of the world’s biggest investors.

“Hopefully this gives us exposure to more institutions keen on buying the stock,’’ Telford says.
At first blush Fidelity looked to have enjoyed a special deal, having subscribed at 20c a pop. But the stock
had already spurted on last week’s news of successful testing in Britain, where Covata should be endorsed as a secure file-sharing application for Her Majesty’s government.

Having built a 6.7 per cent stake in resume play 1-Page, Fidelity has a broader small-tech stock appetite.
Will the joy spread to other ASX minnows?

We rated Covata as a spec buy at 25c in February. Given the need to quash cyberterrorism Covata is a stock for the times and we maintain a spec buy call.