To ALL: I think Milk, Wayne J., and several others are right! Take a look at CVIA from the "Big Picture" view.
Roughly 100 million shares outstanding and that probably INCLUDES most of the converted Reg S.
With what CVIA has NOW, they can probably complete AT LEAST the first acquisition and have a company with Annual PROFITS of around $350,000 - $420,000 a year.
Not many OTC:BB stocks have ANY profits!
With the other 50 million shares remaining (out of the 150 million authorized), I figure they could acquire perhaps another 1 or 2 similar businesses.
That would give CVIA/WOTD annual PROFITS of around $700,000 to as much as $1.26 Million!
That would be an EPS .0047 - .0084 !
An Average Industry Multiple in the range of 18-25 would put a reasonable stock valuation for CVIA/WOTD in the range of...
8.5› to 21›
(That's .0047 x 18 = 8.5› and .0084 x 25 = 21›)
But this stock is currently on the OTC:BB where it's difficult to get a reasonable industry multiple. So I would imagine the management would look to do a reverse split of probably around 200 or 300 to 1. Let's say 250 to 1 for this example.
That could give them about 600,000 total shares outstanding with an EPS in the range of $1.17 to $2.10 !
(That's .0047 x 250 = $1.17 AND .0084 x 250 = $2.10)
That would put the trading range for the stock in a range that could get attract more wide spread interest from investors. They could sell another 400,000 shares at around $10 each (that's 4› x 250 = $10) and raise $4 Million dollars for more acquisitions.
It would also help CVIA/WOTD meet ALL the requirements to move to NASDAQ or AMEX.
Once on NASDAQ or AMEX, they could get a reasonable trading multiple of 18 - 25 and the stock prices would look like this...
$1.17 EPS x 18 Multiple = ..... $21.06 per share
UP TO
$2.10 EPS x 25 Multiple = ..... $52.50 per share
To figure out what your current shares would be worth, just divide those 2 numbers above by 250.
$21.06 divided by 250 = 8.4›
$52.50 divided by 250 = 21›
So if you stick it out through "thick n' thin" over the next 6-12 months, I think that's what we could be looking at...
A 2› share today that could be worth 8 - 21 cents!
It's a risk! But since this business is not "rocket science," I'm inclined to just tuck a few away and forget about them for a year and see what happens.
OK, that's my 2› worth. :-)
I urge everyone to do their own research and ONLY do what they feel comfortable with according to their own risk tolerance.
Best wishes,
Brad |
