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

To: H. Itani who wrote (2924)	4/2/1998 8:33:00 PM
From: Popiye	Respond to of 6654

Irani - this is the not a good stock for the faint at heart, or the new investor with a few bucks to build a base of investments. Every investment has a down side potential, as this one certainly does. Suggest you read all the CVIA thread to feel what is happening with the company. All the material is in the thread, of course, you have to be able to read this like any history book and understand people also have an opportunity to reflect their personal motives. Best of fortune and no tears here in this CVIA thread:)

To: H. Itani who wrote (2924)	4/2/1998 10:21:00 PM
From: Tony	Read Replies (4) \| Respond to of 6654

H. Itani- Most of your questions have been answered on the thread, but to recap (as I understand things, someone please jump in if I'm missing something) First however: I would like to invest with little money to start with That's fine and I wish you luck, but remember that if you invest say $100, with $20 commissions on the entry and the exit the stock needs to go up at least 40% for you to break even. And worse, since you buy at the ask, and sell at the bid, it really needs to increase more than 40% depending on what the spread is. (I learned this by doing unfortunately...) So, you need to ask yourself what "little money" means to you. Currently I try not to invest less than $500 in any given issue to avoid this, but I still need minimum 10% gains to break even. 1: Why does Western Oil want to merge with CVIA and how does western benefir from the merger What we have now is that Western Oil and Tire is a private company, which doesn't have revenues, cash reserves (?), or anything but an experienced top management structure. They have the idea that they can buy existing tire and oil distributorships and then through economies of scale (?) make more money than they pay in the acquistions. CVIA is a public shell company with no revenues, no debt, but due to the Reg S, some cash on hand. Now, by merging with CVIA, Western brings their manegement and our cash together. (The third party in the merger is a tire distributorship, I think they basically take the money and get out of the way, but I'm not sure) Because the new company is a public company, it is easier to raise funds through secondary offerings, and the new company with revenues and profits will be more able to float bonds and get loans than either CVIA or Western in their current forms. After merger, the new company is stronger than either of the previous, so the merger is desirable. 2: Does CVIA have any real assets and how many employees do they have. CVIA has at least $500K in cash (less whatever has been spent since the Reg S.) They have at least Jack Arnold as an employee, I'm not sure about any others. It doesn't really matter, since they're not doing any buisness and post merger employees and costs are what we're all dying to hear about. 3: Would the merger help it go above .1 and what could possibly be a price in 1-3 years for CVIA Truth is, nobody knows. You can do the math and decide for yourself what a fair price is, but nobody on the planet can accurately predict tommorrows stock price, let alone 1-3 years down the road. I personally am partial to the ideas of Peter Lynch, who would tell you that as long as earnings increase a stock's price will increas, and the two never get out of step for very long... but even he would admit he has been wrong, an since we have no earnings, it's hard to make a determination of current value. A short term drop to less than .01 is possible, it looked like it might happen a few days ago (at least to me). I don't think that after the merger it will go below current prices. As to above .1, if you're willing to wait 1-3 years then I imagine you'll see substantially better than that, but again, other than fair value computations, I don't know of any way to predict the stock's movements. Last comment, and sorry for running so long, you can read all the books you want, but the best way to learn is to go out and lose money. At least that's what I did last year, and this year is much better for me. <g> Good luck, -Tony