***¶*** DUE DILIGENCE DATA on WLDI: VERY LOW FLOAT ***
News of the 30 to 1 Reverse Split came as a surprise to me and prompted me to take a good look at the Company, since I see some familiar faces/names involved...
biz.yahoo.com
isotecinc.com
There often are good Business reasons for deeper than necessary and apparently badly timed Reverse Splits... It may well be the prelude to some major financing and/or Business Developments for WLDI, that IMPERATIVELY required such drastic Surgery....
1) Financial Data:
Outstanding shares post-split: 2.2 Million shares....
Float: IR provided a number of 4 Million shares prior to Reverse Split, which would make it around 150,000 shares...
Current Market Cap: around $2.5 Million
Shareholder's Equity: -$611,000...
Last Quarter's Earnings: -$310,000...
Main Shareholders: Labarile and Alexander with approximately 600,000 shares or 29% of total Equity, each...
2) Facts stated by WLDI in the latest 10Q:
+ McBride personal involvement: "The announcement further contained the commitment on Mr. McBride's part, to provide an additional $500,000 for operations and marketing, a portion of which has now been received".
Note: As a SEVU shareholder, I have met McBride on 3 occasions and hold the man in the highest regard... To the best of my knowledge, he's a highly educated (Medical Doctor), hard working, skilled, wealthy, and Ethical person... Here is a report on my first encounter with him, in the SEVU Header...
investorshub.com
+ WLDI Products and immediate Prospects:
"The Company, while still requiring long term operating and development funds, has developed a low cost turnstile portal with optical controls for the foreign and retail markets, optical (beam) passage control products, i.e., Traffic Counters, Directional Monitor, Anti-tailgating Monitor and Interlock Controls (under development), the first of which (traffic monitors) has been delivered to Ventura County, CA, courthouse. As reported in the previous 10Q, expected contracts for portals employing these new devices have now been received from the U.S. Navy, SPAWARS, and the Federal Reserve Bank in Phoenix. Both contracts have the potential for dissemination of these custom designed products throughout their respective facilities in the U.S. and internationally (Navy).
World Am's efforts during this period include the expansion of Isotec's dealer/distributor network with the addition of SeaView as a dealer; signing of a Teaming Agreement with New Technology Management, Inc., a government systems integrator, and inclusion of Isotec products in their GSA schedule; discussions with a major national security corporation (systems integrator) for a similar teaming agreement; signed Letter of Intent with A&J Police of NY and their partner, DAI Alarms of Mexico to enter into agreements as dealers/distributors of Isotec equipment and the manufacture of Isotec portals in Mexico, and; the signing of a joint venture with Quo Vadis International, an international security consultant.
The Company is also in current discussions with two private Hi tech companies for joint venture agreements and/or merger into World Am Communications, as well as two other companies regarding Isotec dealerships".
3) Concluding Opinion:
I completely discount a Merger/Acquisition with SEVU, AT PRESENT, as it would certainly create problems with its anticipated Listing on AMEX, due any time and that's the last thing McBride would want... However, after listing on AMEX, there could be an acquisition and it is quite possible that the outstanding shares of WLDI have been whittled down for a straight exchange for those of SEVU, 1 for 1... At current SEVU share price, such acquisition would value WLDI at $16.5 Million or about 25 cents a share pre-split, in line with Market prices just prior to the Split... A Coincidence???...
It is my strong belief that SEVU shares are bound to experience a very dramatic increase over the next couple years and that WLDI holders, even those who bought at $1.00+, are likely to see a hefty return on their investment...
4) Disclaimer: I have NO knowledge of WLDI's Business or Intentions: this is my personal opinion/interpretation of the recent filings and PR's and readers are advised to draw their own conclusions from the material available, including the SEC Filings... Extensive Due Diligence should be carried out: invest only what you can afford to lose..... |
