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Microcap & Penny Stocks : Corporate Vision (CVIA) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Walters who wrote (1594)	1/14/1998 11:00:00 AM
From: Tony	Read Replies (2) \| Respond to of 6654

This is all IMHO, I'm not an indvestment advisor either. The previous shares outstanding was approx 50 mil. The Reg S had to be at least 25 mil, so our total outstanding is now 75 mil. Therefore, fair market value for whatever we held before is 50/75 of what it was, assuming no other change in the co. (There was something of a floor around .03, so .03 x 50/75 = .02 = current FMV) The only problem is, there has been a change in the co., we now have 500K more in assets, and a merger which will make our shell a profitable corporation. These are good things. On the other hand, Reg S scares investors away in droves. That's a very bad thing. _Personally_, for the long term (ie, post acquisition) I figure: (And note, I'd rather be pleasently suprised than not) -All authorised shares issued = 150 mil shares -Revenue of 3.0 million -Earnings of 300K This gives a Sales per share at .02 and earnings at .002 According to DLJ, median PE for all industries is 18.5, so FMV post acquisiton is around .03 _except_ we don't expect to issue 150 mil shares for the first acquisition. With only 75 mil shares, FMV goes up to .06... And of course, each acquisition after the first adds to the revenue and earnings. _conclusion_ I think it was only wishfull thinking to believe that financing could be obtained without some loss of equity by the existing shareholders. Reg S isn't great, but _I_ believe that it is preferable to a reverse split at this time. I guess, if you believe in the co, this is an "oportunity to average down". If you're on the fence you "wait and see", and if you think Reg S is the kiss of death or that Mr. Arnold or Mr. Charles is trying to pull one over on us, it's time to "get out of Dodge." JMHO, -Tony (sorry this was so long.)

To: Bob Walters who wrote (1594)	1/16/1998 12:42:00 PM
From: D LEE	Read Replies (1) \| Respond to of 6654

Perhaps you're right Bob. I know the financing is cloudy for both reg s and increasing the shares. At any rate it seems that these actions added to merger and name change are of dire importance to NASDAQ's recognizing them as "electronically quotable". So in their attempt to keep it rolling, they are saving the ball (public shell) as well. I, at least, think they are keeping NASDAQ confused enough to make that happen as they continue the actual brain storming efforts, and that you guys have contributed much to their ability to stay focused on "the matter that really matters". There is also a little spiritual stuff going on here. When they look over their shoulder by scanning the thread, I think it's rather like a second cup of coffee. In this way the good faith of others is doing some work at the bargaining table. Nice thread. The price may vacillate, but thanks to the bargaining activities at least there is one to decide upon. There's a little good and bad in everyone for trying to take advantage, but the money is in the company, and we all can still respond as investors. (as you have) (I'm still intrigued, was also confused, and hold no stock in CVIA to date) Dave