Hi, Brad:
Thanks for your assessment of the situation. I emailed
CVIA yesterday asking about when we will know the net assets
of WOTD. As soon as I get a response, I will let you know.
During the course of my telephone conversation, with Jack
Arnold, I vividly remember him stating that this (WOTD) is
a large private company. If this is so, then shouldn't the
company have been around for some time to build to into a
large entity? Or, maybe WOTD is just cash rich by having
private investors infuse capital into it. Any thoughts to this?
Assuming WOTD is a cash cow, do you think the funding will
be primarily with cash or by issuing a lot of shares.
As far as the conversion ratio is concerned, I certainly
hope the company decides to increase the number of shares
authorized, rather than implementing a reverse split. As
you know, reverse splits have historically been terrible
for the share price. Jack Arnold is a pharmacist and not
a trader/speculator. I am not sure he is aware of how poorly
stock prices perform after reverse splits. If he knew the
possible ramifications of this, he may think long and hard
before proposing or voting for a reverse split. Any thoughts
on this as well? I know he has the shareholder's interests
as his paramount concern, but is he aware of how stock prices
tank as a result of the reverse split? |
