CLWK is looking very attractive at these levels. Here's a copy of the new thread summary:
Clearworks Technologies is a little known company that is currently growing quite rapidly
through a steady stream of acquisitions. Dormant for some time, in the past few weeks it
has undergone a name change, and is currently carving out a nice niche in the business and
information technology market. CLWK is involved in large part with customizing
internet/network hook-ups for major corporations. Depending on the company and
industry, they'll specifically customize a product. (For example, if a huge corporation with
dozens of international locations would need a payroll system for example. . . CLWK
would design a software system allowing for network compatibility between each and every
international location.)
But enough about the company background -- (and I'll firmly admit, I'm no expert in
technological systems such as CLWK is involved in. . . I'm much more at home with
analyzing the fundamentals of the stock. Hopefully some technological experts can help
explain the business of the company in greater detail).
The current shares outstanding are 7.2 million, with a float of roughly 600,000. The
company had $6,000,000 in revenue last year. . . company's goal is to generate
$25,000,000 in revenues in 1998. I've been informed that Clearworks has just signed
letters of intent to make acquisitions which will add $17 million in revenues for the year.
Add that to the $6 million for current operations, and we are already at $23 million
projected for the year. Assuming the continuation of an aggressive acquisition campaign,
revenues could end up being much higher than $25 million for the year.
What is especially interesting are the terms of the acquisitions: an "earn-out." In effect,
CLWK will pay for their acquisitions with cash earned from the acquisitions themselves. As
the acquisition brings in cash, that cash will therefore be used to fund the acquisition. So
there will be no share dilution, no convertible debentures, nothing. . . just a set of
non-dilutive acquisitions. For 1998 CLWK should manage a tidy profit. But future years
will post even higher numbers, as the acquisitons will be bought and paid for by that point.
The company is also planning to implement a 3 for 1 FORWARD split. (NOT a reverse).
Often in cases of OTC splits, the split is quite lucrative for shareholders. . . while the
number of shares in this case would be tripled, most likely the price will not fully drop by
two-thirds. For example, if CLWK split 3 for 1 at $6, you'd anticipate a share price of $2.
However, historically, an quick bounce to the $2.50 range would normally be more
accurate. As reverse splits are generally the kiss of death to OTC stocks, a forward split is
conversely a very bullish sign.
Acquisitions are rumored to be announced in the very near future. As Clearworks
Technologies (CLWK) is a very little known company with a small float, the company can
move very easily. With the information that I've gathered, it looks like any movement that
the stock has from this point should be UP. Technically the stock has solid support in the
$2 range, so downside is limited. Upside is much more intiguing.
I am fairly confident that this little known company will not dissapoint investors. My
information has came from the same source that lead me to start a TGSK thread at .68, an
ARXA thread at .35, and caused me to make posts concerning ETPI at .30. If you are not
familiar with these companies, you may want to check a current chart or quote to see why I
have the utmost confidence in this information concerning CLWK. |
