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


To: Max Harvard who wrote (2657)3/24/1998 11:14:00 PM
From: K A Anderson  Read Replies (1) | Respond to of 6654
 
I think some very very big accumulation off set the Reg S issue, these strange trading patterns almost confirm this. JAck Arnold has stated to investors on several occasions that he was looking for investors to retire the Reg S issue...

What I think happened was the investors he had put togather did not get the deal done before the 41 day wait period on the Reg S and instead of retiring the Reg S they "re-bought" it or decided to accumulate large amounts of shares long term.

Jack Arnold strikes me as a type person that has allies, friends and people wanting to see him succeed with this venture... so this is a very possible scenario.

As for the price going to .5 or higher... it would be nice but I have my doubts at the moment... I am thinking .15 is tops (for the near future after the merger) thats a $15 mil market cap so even that is pushing the envelope... but then again hype momentum and excitement some times change the rules... guess we will see

KAA



To: Max Harvard who wrote (2657)3/24/1998 11:22:00 PM
From: dexx  Respond to of 6654
 
Max, I happened to be passing by and saw your post.

I believe WOTD is intending to do what is a called a roll-up. This type of corporation grows strictly through acquisition.

The objective is to find a market niche which can exploit a series of economic factors that turn positive when an acquisition threshold is reached (in other words, buying power means lower prices and higher profit margins).

I will borrow from an article in USA today that was posted on this thread earlier by someone else.
________________________________

Excerpt from USA TODAY

Meet the godfather of the modern rollup. By next month, Jonathan Ledecky, 40, will have had a hand in the creation of eight rollups. In four years, he's gone from financing his first venture with $250,000 on his credit cards to personal holdings worth $200 million.

Ledecky is a Washington D.C. businessman who stumbled onto the rollup craze as it was taking off. He hatched the idea of rolling his single-contract stationer with five others, selling stock to the public, and becoming a major player in the office supplies business. Ledecky says he was turned down by 95 of the 100 contract stationers he approached about becoming part of the company. Forty investment bankers rejected the idea before he found one that would back him. U.S. Office Products was born.

The $3 billion company rolled up 220 smaller outfits hawking everything from office coffee services to corporate travel. After the stock fell on hard times, Ledecky announced plans to split the company into five publicly traded companies. He has since gone on to co-found a floral wholesale rollup, USA Floral, that has $350 million in annual sales.

He raised $500 million in a blind pool last year for Consolidation Capital before deciding to make it a rollup of building maintenance firms. Next: a rollup of equipment financing businesses, UniCapital.

"I like sponsoring young, hungry executives who want to do consolidations," he says.
_________________________________

Anyway, it appears that WOTD will start with annual revenues of $3.5 Million (probably 10-15% profit). This appears to put WOTD on the board with revenues and profit from the start.

I imagine WOTD will buy this acquisition and future acquisitions using money and/or stock. This will likely require additional funding, but probably from sources less stressful to shareholders than Reg. S.

Hope this helps.

Dexx



To: Max Harvard who wrote (2657)3/24/1998 11:30:00 PM
From: Milk  Read Replies (3) | Respond to of 6654
 
Hi Max,
You wrote:
>>>When the deal does go through, then we have how many years for this tire business to become a true asset? That takes time, energy and good management<<<

Their first acquisition target is not some start-up outfit, it's
"... a profitable 20 year-old tire company with $3.5 Million in annual sales and approximately 10-15% of that in pre-tax profit...' - Company Press Release, 12/22/97

As for the $500,000 price tag you mentioned, the press release indicated:
"Corporate Vision Inc. also announced they have received $500,000 to participate in the purchase of the first acquisition for the post-merger company WOTD. This amount includes CVI's commitment to provide operational expenses under the merger agreement."

We don't really know what the exact acquisition price is from this PR, since they have a trilateral agreement (CVIA+WOTD+Unknown Company), though I suspect it's close to $500k. Just speculating.

Hope we'll find out this week.

Milk