Hi KZAP! CVIA is a turn-around. They have several offers from Merger candidates. Here are the last 2 Press Releases:
From Oct 14, 1997
biz.yahoo.com
From Nov 11, 1997
biz.yahoo.com
In my opinion, CVIA seems to be in a great position to attract a very good situation. Of course, any pennystock has risk, so be sure to check it out for yourself.
But here is how I see the potential.
I think the size of a MERGER is the key!
Let's assume that CVIA issues ALL of it's remaining Authorized Shares (100M) in the merger process. And we will use 20 as a reasonable Average Industry Multiple.
Even if they merged with a small company doing only $4-5 million in sales, it could be $500,000 in profits which could look like this...
$500,000 profit = .005 EPS x 20 multiple = a 10 Cent per share price.
If it's a medium sized company... say $10-20 million, with profits of
around $1.5 million, the math could look like this...
$1.5M / 100M = .015 x 20 = 30 cents per share.
If it's a larger company... say annual revenues of around $50 million with profits of $5 million a year, the math could look like this...
$5M / 100M = .05 x 20 = $1.00 per share!
Here are some of the reasons CVIA seems to be attractive to potential merger candidates:
1. CVIA is a clean shell but it DOES have some ASSETS!
(They own interest in 2 small companies)
2. CVIA has Virtually NO Debt.
3. CVIA has ALREADY positioned itself to accommodate merger
candidates.(Presumably meaning it has already done many of the preliminary details necessary to prepare for a merger.)
4. CVIA is ALREADY reporting with the S.E.C. unlike most OTC-BBs.
5. AND CVIA has a $2 Million "loss carry forward" that could be of
benefit to a merging partner depending on the details involved. This could be worth $600,000 CASH under the right circumstances.
6. CVIA has about 14 companies that make a market in its stock.
There's a lot more to CVIA than most people think.
And if they sign a strong deal, it could be HUGE overnight.
I think CVIA is in a very favorable position to attract interest from some good merger candidates. Time will tell, of course. But I am betting money on some good things happening here.
Obviously, these are just my opinions. I urge everyone to find out the facts for themselves before they invest in anything.
Best wishes,
Brad |
