Milk & Bill, I also noticed those 2 large buys. One was for 447,000 shares and the other was 450,000 shares. Both traded at .019!!
They happened within 2 minutes of each other and it was about 15 minutes prior to the close of the day.
Sure looks interesting!!
Here's some food for thought...
1) If CVIA/WOTD gets this first acquisition done, and
2) if they use the additional 50M shares to acquire 2 more similar companies,
Then...
We would have about $1.3M in profits
on about $10M in sales.
$1.3M divided into 150M shares = .0087 EPS
.0087 x 20 (Industry Multiple) = .17 cents share price.
I think we could be looking at roughly 6 months or so to get these acquisitions accomplished.
However, I'm not sure we would see 17 cents a share under these circumstances, as long as this is an OTC BB stock.
I think CVIA/WOTD should get the first acquisition (maybe even a 2nd or 3rd as well) under their belt and demonstrate the ability to make proven profits.
THEN, because the OTC BB is (in my opinion) so heavily manipulated by MMs, I think CVIA/WOTD should do a rollback (reverse split) of whatever it takes to get the share price up to around the $5 level.
It is very possible that they would then meet all the requirements for listing on NASDAQ Small Cap or AMEX.
I don't usually like a rollback (reverse split), but I DO think that under the circumstances I have described above, a rollback IS the best method for getting a serious business OFF of the OTC BB exchange and on to a reasonable exchange that has to abide by some rules (i.e. NASDAQ or AMEX).
In this way, I can see a 2› share ultimately providing about a 850% return (the equivilent of 17› a share) to investors.
BUT... to get to the 850% return, I could see this happening:
1) The company reports a profit from 3 stores of $1.3 Million.
2) The share price climbs to the 4› or 5› range.
3) The company does a rollback of 150:1 which raises the share price to the $6 to $7.50 range. It then drifts back to around $4 or $5 because of the "traditional downward pressure by MMs" after a rollback.
4) The company moves to NASDAQ Small Cap or AMEX.
5) The company continues to demonstrate profitability and the price begins to climb up to a $25 range (which would be a 20 Industry Multiple).
6) I think this could all happen within about a year.
This, I think, is a very realistic process for CVIA/WOTD. It would actually be an 850% increase on the original 2› investment (17› x 150 rollback = $25.50).
Of course, this is just MY opinion. I invite comments on this thought process. What do you think?
Best wishes,
Brad |
