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


To: Milk who wrote (1699)1/26/1998 5:06:00 PM
From: Bill Monahan  Respond to of 6654
 
I looked at the one day chart on yahoo and saw what looked like two individual trades over 425,000 shares. If this deal is coming togather, we will see large blocks traded on no news. Look for the 500K blocks on no news. I hope we move back up to my fuzzy warm trading range of 4-5c.
bill



To: Milk who wrote (1699)1/26/1998 6:54:00 PM
From: Brad  Read Replies (2) | Respond to of 6654
 
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