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Stillkickin/skepticism/enlightenment,
The bigger the swing, the bigger the risk. Anybody who has been in the risk taking business long has been burnt and should look harder for the negative than the positive.
Time is a factor too. If one could look at this company an hour a day for several weeks in conjuntion with others, the greater opportunity would be for comfort. Situations don't always give one the time.
I believe this is a winner but my comfort level would be higher if I knew whether this was a good shell choice/price and also out of those 3 options, option 2 still seems irrational to me.
Any enlightenment would be appreciated.
sam
Charlatan/convertible question,
I am guilty of being lazy. I don't blame your lack of patience.
I just did a search of the full document for both convert and convertible. I failed to find an answer.
If you are willing to correct me, it may be due to my lack of full knowledge about convertibles. Could it be that it is standard for convertibles to be converted before mergers, and if not converted before merger then what, paid off as a loan amount + interest?
sam
ragingruss,
I know I don't want to ever get certs if I can help it. I certainly assume no need to.
sam
The convertible could be called if common < 20 cents. May it have happened as early move in this saga. Seems like there would have been a pr.
I did not understand the final part about the company had to inform convertible holders before acquiring stock?
sam
any convertible answer?
sam
Petermic brought up a troubling point about the convertible. IF the deal is legit for $15 value, can't the convertible for practically nothing others words for less than $1/share quite possibly mean:
as example maybe $10 million paid to company to receive 15 million shares of dilution valued at $225 million
sam
livingonpennies/dders,
If I understand you correctly, you are concerned as to why the price is not higher.
At this point when it comes to fear and doubts, I think that is the issue, the price currently. Why are not people in the know with deep pockets flocking? Very good question for a company getting to be well known based on so many projects.
On the surface it does not look like a good shell deal, but maybe people are misunderstanding the Amazon comments.
If I read correctly, Rufus likes the Amazon potential.
As far as a real IPO, is not that for if you need capital? I don't know if CVSU needs capital.
As far as the option 2, it looked nutty to me. I don't think charity is the answer. I don't get option 2.
sam
LIVINGONPENNIES,
2 questions arise from your response to sammy.
IF according to tax code it is based on book value and the fact of merger, is the $15 heavily scrutinized by SEC?
If it is something SEC looks at, why are those familiar with regulations not jumping all over this opportunity?
sam
Petermic/merger, The merger verbiage that looks unique on the surface is the 3 option business.
If the whole business is not a scam,
To my mind option 2 was thrown out either due to
a) rufus is an idiot about business
b) rufus knew better and lied to pump when such pumping is idiotic also
c) rufus has an enormous ego about the company, therefore an idiot again
Despite that perhaps the company is worth $15.
Do you have a reference to another deal with the 3 options?
sam
Bud750,
Is there any history of success with this company? What is the rationale for being worth more than 2 x book?
sam
Petermic,
I am lazy on research but logically why would somebody choose a name from google that can be found?
If this is a scam it has some smarts to it, the google goof would be dumb? Rufus knows there is an enormous amount of microcap shoppers looking into this.
sam
Con maybe. Seems like a lot of work to perform the con. How much information has CVSU and its predecessor put out in the last 2 years? For instance excellent con work the last press release about hires. Looks like mentioned an identifiable person there. Google shows for the Colonel an email address as I recall.
sam
Petermic,
Setting the price is a form of pumping I believe. A pump does not mean a scam, but is a worry.
The worst think about the pump if not a scam is that Rufus will possibly but not necessarily be hurting in the short-run the price if it does not stay near a set price. He will look like just a fool or does he care if getting attention is the first step.
2 questions.
1. If a con job, how does it work? I could understand FHAL management running a con but with CVSU how are they working it, ie benefitting. Did they buy FHAL for lower price and selling at higher? They have press releases for maybe 2 years. They did probably a lot of work on web site.
2. If not a con job, even if FHAL is worthless CVSU obviously had to see a benefit to this merger plan.
sam
sam
TOP100,
If this is basically a buyout, why all the fancy wording? Why isn't just a merger announcement with 1/1 stock as mentioned and quiet heavy buying of float?
Could it be the insiders for fronthaul want $15/share guarantee? If so this 3 option business looks illegal to me because the $15 share guarantee is being camouflaged in a way to make the guarantee look like a maybe.
sam
First time in error, read 2nd eom
What is the rationale for option 2?
If the stockprice is $1 at merger and > 65 million shares outstanding, is it about 100 million? then
if 100 million wants $14 cash = $1.4 billion, impossible
if the stockprice is $14 then say 10 million get out at that time and get $1, then $10 million would be paid out not my error of $140 million
Only a useful option then for close above $10 and not everybody can partake assuming they have to see at market and not previous close. Is that so?
I would appreciate feedback.
sam
What is the rationale for option 2?
If the stockprice is $1 at merger and > 65 million shares outstanding, is it about 100 million? then
if 100 million wants $14 cash = $1.4 billion, impossible
if the stockprice is $14 then say 10 million get out at that time and get $1, then $140 million would be paid out
$140 million is probably about the limit I would think so option 2 does not seem to have much value to me.
That is a question mark for the legitimacy of the whole shebang to me.
I would appreciate feedback.
sam
THANKS RRUFFF eom
Rrufff,
Have you been following FHAL? It seems legit but it is mystifying how a nothing company can suddenly find a ton of gold.
sam
thanks rjbluesky eom
RJBLUESKY,
Did you see my discussion of your formula? Any response?
sam
RJBLUESKY/formula,
I am trying to understand what you are calculating.
You show in formula 50% and then 60% of that due to taxes which together equals 30%. Is that 30% same as net profit?
I would think from messages 20% net profit would be more conservative.
Do you think if total revenue recognized is $120 million for next 12 months that your $2.52 is more accurate or 2/3 of that which is $1.68 or maybe some other figure?
sam
Hello scam believers,
I got out months ago with a small loss. Since suspicion was heavy then, how can you explain the current price being so high? Money doesn't follow the wrong trail forever.
I don't know what the story is but it is interesting to follow.
sam
Masterofalltrades,
What about the history of this company has allowed to go from nothing to becoming something so quickly.
Any history lesson would be nice.
Thanks,
sam
masterofalltrades,
Been reading your emails. You appear to have had a lot of success.
Are you still expecting $50 million revenue in 2007? How can you justify 10 times sales for cap? Perhaps it will happen, but it is not a conservative outlook.
We don't even know what the earnings were for this past quarter yet.
I would appreciate your thoughts. Until then, I view if I get in as a case of riding the momentum of good news but I don't think that the current based on quarter of a cap of 2 times sales as a basis for a 10 bagger.
sam
Jim,
What has been happening here? What do you think this is worth?
sam
Thanks tdam I had to call in and get a temporary password and then chg temp pass after using to get in despite having had a nice 8 digit one before.
sam
I still cannot login into old td water today - what about those who have had problems also. Still for you?
sam
.62 SYMD.ob see news eom
Rrufff,
2 new solicitions in mail I am putting on watch
bmgc.pk from j. taylor
oegy.ob from eric dany
I will be leaving Thursday for 4 day trip
sam
Look at SYMD.ob (synthemed)
I believe they are on target to release in about 1 month final test results on a product to deal with preventing wound adhesion for heart surgery. Assuming good, FDA approval should soon follow.
It is obviously safe to be this far. I am betting it will reduce adhesion problems by a significant margin, that is the hurdle to beat.
There is no competition. $250 million estimated market for just heart surgery. Perhaps can apply to other surgeries eventually.
Based on future estimate of 100 million shares, marketcap of $60 million using current price.
With perhaps good market penetration, net earnings might could top $60 million/year.
sam
Rrufff,
These volatile early in the making are tough to figure for me. I have received several soliciations in the mail on this one claiming the sky is the limit. I did not buy.
You have to be good at dd which I am not.
sam
Rrufff,
Have you looked at SOIGF?
Thanks,
sam
Rrufff/CXTI,
What is your thinking on CXTI if you still follow? Thanks as always for your insight.
sam
Dr. Bill,
So far your predictions of doom have played out, but other than not knowing sharecounts and bad technicals and too much silence, what led you to your being so negative early on?
At this point though any tea-leaf reader has to know something is not good.
sam
Lazarus,
Your post read my mind.
sam
Actually if anybody can tell me about a company with multiple employees and revenue with a market cap of less than $1 million, I would like to know the particulars. Might be a buy???
sam
My mistake was subpenny. I should have set the bar a little higher. How about a subpenny with less than 100 million shares with multiple employees and revenue?
sam
Your example looks like 10 cents. Sub-penny would be like .008
sam
10 BAGGER,
I will test your objectivity. Have you ever seen a sub-penny stock with an o/s less than 100 million?
I will again test your objectivity. How can one assume 100 million o/s without any kind of verification that there is such a number?
sam