To: Wayne J. who wrote (1734 ) 1/28/1998 10:35:00 PM From: Brad Read Replies (1) | Respond to of 6654
Hi Wayne! I sure appreciate the great job you are doing! I am glad to hear Jack Arnold continuing to address the key issues here in such a straight forward manner. I seems to me, when you compare CVIA / WOTD with almost ANY other stock of ANY price, the "class" and honesty of this organization in presenting a solid business plan, is about as high a caliber as you will find anywhere. I think these guys are telling us the TRUTH! This is a 2› stock with 150M Total AUTHORIZED Shares. That's about a $3 Million dollar market cap when ALL those shares are finally used. If they do a rollback (reverse split) of even 200:1, we have a $6.00 stock with ONLY 750,000 shares. Even with ONLY ONE acquisition doing $435K in profit, it would be an EPS of 58›. With an industry multiple of 18-25, that's a share value of $10.44 - $14.50! If they get 3 acquisitions with the total shares they have (which is MY guess of what they can do), that would be about $1.3M in profit on only 750,000 shares. That's $1,300,000 divided into 750,000 shares = $1.73 EPS!!! That's a share value range from $31.14 - $43.25!! This is ONE situation where I think a rollback is justified. And it NEEDS to be large enough to assure them of qualifying for NASDAQ Small Cap or AMEX. There should be NO messing around with OTC:BB any longer than necessary. If they are as sharp as I think they are, they would do a rollback at about the same time as they are doing something else that demonstrates the viability and profitability of the business plan. Perhaps by coupling it with the completion of acquisitions and/or large non-dilutive financing opportunity, or something of that magnitude. That would help diminish the adverse affects of the rollback. It would keep the positive momentum. Of course, it would also help if they announced a substantial EPS as well. There are ways to accomplish what it sounds like they want to do, as long as they have the management "horsepower" to bring in the serious money. I think this is getting both interesting and intriguing. I'm game! Thanks again, Wayne, for sharing your info with the thread. Best wishes, Brad