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I don't think we really have much of a chance of seeing this go anywhere soon unless worldwide there's an increase in infrastructure spending. I’m hoping our next president goes through with the infrastructure spending they’re discussing. That might help shed some light on CVIC, but we still need to get the price into the $5.00 range so we can move to the NASDAQ.
For your sake, I wish it was .052. Hopefully by this time next year we'll be looking back and saying "I wish I would have bought more even at .52"!
Was that .052 or .52? I wish that I had bought at the .05 level. I'm holding 85,000 at .55! Not a good position right now and I'm not in the position to buy more. Have a good New Year!
How much could you really save by selling this stock? You would have had to pay the high price and bought a lot of it. JMO Hopefully, next year will be a better one! Happy New Year to all!
Down to .07? Not looking to good - any thoughts anyone?
Cavico Issues Guidance for Fiscal Year 2008 and 2009
Monday December 22, 9:00 am ET
LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC - News), a leading infrastructure development company in Vietnam, today announced guidance for its fiscal year 2008 (FY2008) and fiscal year 2009 (FY2009). These amounts represent the Company’s current backlog and management forecasts of Cavico’s future financial performance.
Cavico expects FY2008 revenue to increase by 58.5% to $60.0 million and revenue for FY2009 is expected to grow by 33.3% to $80.0 million. The Company estimates net income of $0.9 million in FY2008 and expects net income to reach $3.2 million, an increase of 255.6%, in FY2009. Cavico forecasts that the anticipated growth will be driven by existing and new operations managed by the Company, including its entry into the wind energy market. The Company expects the increase in mining and construction operations to be led by the growth and development of the Vietnamese economy.
2008E 2009E
Revenue $60,000,000 $80,000,000
Net Income $900,000 $3,200,000
“We continue to see strong revenue growth from our core business of hydropower projects and mining construction. The year 2008 has been a challenging year due to the high levels of inflation and increased interest rates in the last three quarters of the year, which adversely affected our net income in FY2008. However, we have overcome these difficult times successfully and expect to report profit compared to other construction companies in Vietnam which have reported declining revenues and deficit from operations. Our future growth is expected to be driven by our successful expansion into the wind energy market, real estate development, and project investment business,” commented Mr. Hung Manh Tran, vice president of Cavico Corp. “We continue to develop our expertise in managing infrastructure construction projects. Our aim is to be able to support the Vietnamese government in its efforts to improve the infrastructure in the country. We have developed strategic partnerships with investors in our core business and will expand the support to execute our real estate development strategy. We are confident of our strong performance and are on track to meet our financial projections,” added Mr. Tran.
Does anyone else think that CAVICO may getting involved in too many projects? I like the idea, but I’m a little concerned with their cash flow. Any thoughts?
My concern is having the funding to complete all of the projects that they have in the works. Also, I would like to see a reverse stock split so the price was above $5. I think that may solicit more investors.
Cavico Enters the Wind Energy Market! Sounds like a good move to me!
Cavico Corp. Announces Third Quarter 2008 Results
Tuesday November 11, 1:00 pm ET
-- Revenues climb 90.8% year-over-year to reach $14.7 million
LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC - News), a leading infrastructure development company in Vietnam, today announced financial results for the third quarter ended September 30, 2008.
Third Quarter 2008 Highlights
Revenue for the third quarter increased 90.8% year-over-year to $14.7 million
Gross profit increased 61.1% year-over-year to $1.6 million and gross margin was 10.6%
Net income was $148,984
Received $2.8 million cost adjustment on the Bao Loc hydropower project
Revenues for the third quarter of 2008 increased to $14.7 million, up 90.8% from $7.7 million in the third quarter of 2007. Cavico’s strong revenue growth in the third quarter resulted from an increase in construction and mining projects. During the third quarter of 2008, revenue from mining construction projects increased by $32,690, or 4% to $851,672, from $818,982 in the third quarter of 2007. The growth in mining was due to increased mining activity at the Nui beo mine. Revenue from civil construction projects increased by $6.8 million, or 106%, to $13.2 million in the third quarter of 2008 from $6.4 million during the same period last year. The robust growth was due to the additional revenues from new hydropower construction projects managed by the Company.
Our outstanding revenue growth of more than 90% in the third quarter was primarily driven by our ability to win new projects in our construction and mining business. We believe our reputation as one of Vietnam’s leading infrastructure management company combined with our advanced technological expertise enables us to exceed client’s expectations and provides us with a significant competitive advantage. Our business has also benefited from the cost adjustments received on various projects and we are happy to report that both the Vietnamese government and our clients have provided complete cooperation. We continue to remain very positive of our growth prospects in Vietnam,” said Mr. Hai Thanh Tran, Vice President of Cavico Corp.
Third Quarter Results
Net sales in the third quarter of 2008 were $14.7 million, up 90.8% from the third quarter of 2007. Sales from civil construction increased 106% year over year to $13.2 million, and accounted for 89.8% of net sales. The significant growth in revenues from civil construction was a result of new hydropower projects added during the quarter. Sales from mining increased by $32,689 or 4% to reach $0.9 million, accounting for 5.8% of net sales in the third quarter of 2008, and other operations and production accounted for the remaining 4.4% of net sales.
Gross profit was $1.6 million or 10.6% of sales compared to $1.0 million or 12.5% of sales for the three months ended September 30, 2007. The decline in gross margin during the quarter was due to increased inflation in Vietnam during the third quarter of 2008.
Operating expenses totaled $1.7 million, up 61.7% from $1.1 million in the third quarter of 2007. The increase in operating expenses was primarily due to the rise in general and administrative expenses. The increase in G&A was a result of increase in payroll expenses due to salary increments, increase in administrative costs of corporate office and subsidiaries. The Company expects G&A expenses as a percentage of sales to decline.
The Company reported an operating loss of $0.2 million, compared with an operating loss of $0.1 million in the third quarter of 2007.
Other expense was $1.3 million in the third quarter of 2008, compared to other income of $5.2 million a year ago. This was mainly due to gain on sale of marketable securities of $5.6 million for the three-months ended September 30, 2007 compared to a loss of $0.4 million reported during the same period in 2008. The interest income earned during the quarter was also lower at $0.2 million compared to $0.5 million for the same period in 2007.
The Company accrued $2.9 million of taxes related to the year ended December 31, 2007. During the third quarter of 2008, the Company determined that its actual tax obligation was lower than this original estimate and the difference of $1.9 was recorded as a reduction of tax expense during the third quarter of 2008.
Net income was $148,984 compared to $3.7 million a year ago. Earnings per share were $0.00 and $0.03 for the three-month periods ended September 30, 2008 and 2007, respectively.
Nine Months Results
For the nine months of 2008, total revenue was $42.5 million, up 111.0% from the nine months of 2007. Revenue from mining construction was $3.0 million, a decline of $51,946 or 2% from the same period a year ago. Revenue from civil construction was $37.6 million, up by 134.0% from $16.1 million in the first nine months of 2007. Revenue from other operations, including leasing machinery and equipment, selling materials, was $1.5 million, up 49% from $0.5 million for the nine-month ended September 30, 2007. Revenue from production was $0.4 million for the nine-month ended September 30, 2008 from a new subsidiary - Cavico Industry and Technical Service with steel fabrication production.
Total gross profit for the nine months of 2008 was $7.2 million, up 160.7% from gross profit of $2.8 million in the comparable period a year ago. Total gross margin was 17.0% and 13.7% for the nine months of 2008 and 2007, respectively. Income from operations was $2.3 million compared to loss from operations of $0.6 million in the nine months of 2007. Net income for the nine months of 2008 was $0.7 million, compared to $4.1 million in the nine months of 2007. Earnings per share were $0.01 and $0.03 for the nine-month periods ended September 30, 2008 and 2007, respectively.
Financial Condition
As of September 30, 2008, the Company has $1.8 million in cash, accounts receivable of $21.6 million and construction work in progress of $27.4 million. Total current liabilities as of September 30, 2008 were $74.1 million. During the nine months ended September 30, 2008, the Company generated $2.3 million in operating activities, while using $6.5 million in cash flow from operating activities for the same period in 2007.
Subsequent Events
In October 2008, Cavico announced that the Company’s majority owned subsidiary, Cavico Hydropower Construction has achieved a breakthrough on the headrace tunnel at the Dasiat hydropower project.
In October 2008, Cavico announced that Mr. Edward K. Chi, the Company’s former chief financial officer has resigned to devote his full time to his personal real estate development projects, and the Company’s CEO and Chairman, Mr. Ha Quang Bui, will take over as the interim CFO.
In October 2008, Cavico announced that the Company’s wholly owned subsidiary, Cavico Vietnam and majority-owned subsidiary Cavico Bridge and Tunnel Construction have made several changes to the management structure as a part of their leadership restructuring process, effective October 6, 2008.
In October 2008, Cavico announced that the Vietnam Ministry of Agriculture and Rural Development has awarded Cavico Vietnam, the Company’s wholly owned subsidiary, an additional contract to construct an inlet tunnel for diversion of construction and flood discharge, valued at $18.5 million, at the Ta Trach water reservoir project.
Business Outlook
Cavico has made constant progress in expanding its leading position in Vietnam’s infrastructure construction industry. The Company has been successful in acquiring new contracts. Vietnamese government continues to encourage energy companies and Cavico’s presence in the hydropower segment provides an attractive opportunity for growth.
“We are pleased to report a strong top line growth and we continue to take active efforts to control costs and improve efficiencies to ensure profitability. The growth of the Vietnamese economy is on the right track and our business is aligned to take advantage of the growing opportunities in the high growth construction market of Vietnam,” commented Mr. Hai Thanh Tran, Vice President of Cavico.
Tomorrow is the big day. Let's hope the presentations go well in NY.
Why the vol today?
JMO - I think that we are going to be surprised with what we hear. I think there may be some "Remaining Value" that is added into the revenue that will be a real boost. The numbers must look good or the road show would be put off. I'm hoping to see a large gain in revenue, back orders, and possibly something said regarding an uplisting onto the NASDAQ.
To All,
It appears that Cavico’s presentation at the Rodman & Renshaw conference will be at the New York Plaza hotel on Nov. 11 at 4:30pm in the Henry Salon on the 5th floor. From the timetable my guess is that they will have about 15 minutes to present the company. I would like to go, but my job won’t allow it. Anyone else that can make it?
Good luck to all!
I sure wish my average was around .18. I'm sitting at .55 and have no plans to buy more until I see better news.
I received the packet too.
I'm hoping the stock market settles down a little before the end of November's road show. I'm also curious as to how the 3rd qtr numbers are going to look and if there will be any contract announcements before the road show.
Any idea what this means?
Form 8-K for CAVICO CORP
--------------------------------------------------------------------------------
6-Oct-2008
Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of business acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
Not available.
I sure hope the November Wall St. Presentation isn’t put off.
We could use some positive news and a little investment in the co.
JMO - If the "Remaining Value" gets posted as revenue we should see a big jump next quarter in profits...just before the road show. I don't have the time to calculate all of the outstanding "Remaining Value", but if someone has, it would be interesting to know.
New websitge updates coming.
Answer to a couple of my questions:
In answer to your questions:
The "Remain Value" for these completed contracts represents work completed, but final contract certification from the Vietnamese government has not yet closed the books on these contracts and final payment is not yet recognized as revenue. The previous auditors have been carrying these uncertified final payments in this special category. The new auditors are pressing for recognizing these "Remain Value" amounts as revenue. Final resolution for this classification is still pending. Accounts receivables are primarily for the management services contracts were services are billed and not yet paid. I am waiting for a more complete response on this discussion from Cavico management this evening and will forward their response.
As to the next Wall Street presentation, we are anticipating a road show in November that will start after release of Q3 numbers in mid November. We anticipate to spend at least 3 days in NYC, followed by visits to Chicago/Milwaukee, Dallas, San Francisco, Portland, Los Angeles, and San Diego. Cavico will also be presenting at the Rodman & Renshaw and Roth Investor Conferences in November.
I will give you a further update as we finalize the schedule.
Cavico Subsidiaries Sign $1.15 million Road Construction Contract
We just had a buy at .20? Big jump!
I wonder why they don't do a reverse split and get the price into the 5 dollar range and look into moving onto the Nasdaq.
Can anyone explain "remaining value" to me? If a project is completed how can their be any remaining value unless they're Accounts Receivable dollars waiting to be received. One example is below. I'm just a little confused!
Ban Chat Hydropower
Ban Chat (Lai Chau)
Current Contract Contruction
Contract Start:2007
Contract Complete: 2007
Contract Value: $ 9.375.000
Work done: $66,755
Remain values: $3,058,245
Any idea when the dog and pony show will begin? I thought they were going on the road this fall?
Also, maybe a reverse stock split could bring the price to the $5.00 range so we could move "up" in the world!
Why the vol today?
Is it just me, or has there been a lull in new contracts?
Me too, another 10,000
They just anounced a $2.8 mil positive adjustment. You would think maybe a .01 increase in price, but it doesn't look that way.
Here is comment from a friend of mine livinig and working in VN. "Vietnam is hurting at the moment. Before I left (early May), I was reading about construction projects being abandoned because the cost of raw materials was rapidly rising and contractors could not increase their fees." I hope these wern't CAVICO projects.
Can someone explain how the project can be completed, but there is still outstanding "remaining value"? Is it just open A/R? I also noticed that several of the projects are slated to be completed in 2008 with the majority of the contract as "remaining value". Does this mean that sometime later in the year or early 2009 we may see a significant increase in profits, that is, if the cost has already been declaired while the project was on-going.
Ban Chat Hydropower
Ban Chat (Lai Chau)
Current Contract Contruction
Contract Start:2007
Contract Complete: 2007
Contract Value: $ 9.375.000
Work done: $66,755
Remain values: $3,058,245
Is another contract good news or bad? I'm starting to forget! Anyway, I'm leaving for St. Thomas on Sunday so we should be around .09 when I get back! I'm going to make a point not to look at the market until the 28th. Good luck to all!
To All,
Here is the reply from the PR company re my questions:
Mike,
In answer to your questions, I would like to point out some very positive highlights in the Cavco story.
Cavico has set as a strategic initiative to upgrade to the Nasdaq and maintain a higher visibility. As part of this initiative, Cavcio management has embarked on a program to maintain a higher visibility since relisting on the OTCBB in March, prepare and execute IR programs to increase shareholder value, pursue optimum investment opportunities, restructure the corporate organization, redesign the corporate website, and continue to execute on the diversified business model. The company has maintained a steady flow of new press releases including the release of Q1 2008 financials and updates on significant projects like the Dambri and Nam Chine Hydropower projects and the urban development investment zones. Cavico released a clarification of the inflation adjustment contract provisions on their largest projects. Cavcio management is committed to increasing the visibility within the US investment community, enhancing shareholder value and meeting all of the threshold requirements for listing on the Nasdaq. We are working closely with Cavico management to help them achieve these objectives and prepare them for the next step in this process by executing US road shows and interacting more consistently and effectively with US investors.
Cavcio continues to successfully execute on the business model. As the Q1 2008 financials indicate, Cavcio grew revenues by 71.5% yoy. Net income from operations jumped from a loss of $127K in Q1 2007 to a positive of $684K in Q1 2008. Revenues from civil engineering projects increased by 93% yoy on new and expanded hydropower projects. The increased demand for coal worldwide has created additional growth opportunities for Cavico in mining construction. Cavcio is successfully executing on the growth strategies laid out in the 2007 10K filed in March and the 10Q filed in May. Even with concessions for seasonality due to Lunar Holiday and the Northern and Southern monsoon weather impact on construction activities, these Q1 2008 numbers are impressive.
Cavicao is an essential player in the aggressive Vietnam economic growth. Vietnam is the second fastest growing economy in Asia , consistently topping 8% GDP growth. A recent New York Times article called Vietnam the "next China ." Vietnam is not only a source of cheap skilled labor, but is also poised to provide essential energy resources to fuel the insatiable appetite of these global economies. The Vietnamese government recognizes this dynamic by continuing to spend more than 10% of that GDP on infrastructure and energy. Cavico plays a crucial role in that investment.
Stock price impacted by unusual short term anomalies that are not consistent with the positive investment thesis. The stock price has taken lumps due to pent-up selling pressure from short term investors who took the relisting on the OTCC as a selling opportunity after the extended period of not trading in 2007 and the initial confusion due to the change in the ticker symbol and single market maker. These trading anomalies had a significant impact on the stock price, but the actual trading volume only represented approximately 11M shares changing hands out of a TSO of 131M shares. This volume indicates a residual support for the story with a shake-out of many of the investors who may have expressed their frustration over the delisting issues by selling out entire positions.
The volatility of the US economy further exaggerated this negative impact. The rise in oil prices and downturn in both the US and Asian markets have discouraged aggressive new buyers. Many of these selling Cavcio shareholders must be unaware that Cavcio backlog and current contracts are insulated from the impact of rising oil prices due to the preferred contract status and built-in inflation adjustment contract clauses as detailed in the most recent press release.
Cavcio will be conducting US road shows in the coming weeks to meet new investors and help dispel any lingering misperceptions and reinforce the positive aspects of the still evolving investment thesis.
Evidence of Cavcio growth reflected in strong financials. As part of the Q1 2008 financials, Cavcio reported increase in Accounts Receivable of from $21.7MM in Q4 2007 to $22MM in Q1 2008 due to an increase in sales from completed projects. More than 65% of AR are from contracts with project management units of Electricity of Vietnam, a government entity. Cavcio has reserves of $582K which management feels is sufficient for any doubtful accounts.
Please contact me if you have any additional questions. I would welcome the chance to talk you further about the story. If you need more detail on the AR breakdown, I can pass the question on to Cavcio management.
I will keep you updated on the Cavcio story.
Roger Ellis
CCG Investor Relations Strategic Communications
Partner & SVP for Market Intelligence
310-477-9800, Ext. 106
roger.ellis@ccgir.com
Finally, some good news "Cavico Announces Upward Inflation Adjustments in Construction Contract Values". I would think this should help the price a little. Also, I contacted our PR firm and asked the status of moving to the NASDAQ. I also contacted CAVICO and asked if there is a chart that reflects the status of every project with completion date and A/R. I'll let you know what I receive.
Sorry, but I'm leaving for St. Thomas in another few weeks. Hopefully, history won't repeat itself or I'll be buying more shares around .06 when I get back! Oh, and I'm planning a trip to Las Vegas in early December...maybe .025 by then?
I'll be glad to tell you about all my winners. It should only take a minute or two. Now, if you want to hear about the others you're going to need a lot longer! Hindsight is great! Have a good evening and let's hope Friday is a better day!
Wish I could say that I only had very few shares at the 1.74 price I did pickup more at .38, but will feel a lot better when we get back to the 1.75 range again.
Does anyone know where I can get a list of the projects that are scheduled to be completed this year?
As a side note, I'm still unemployed and looking for another job. I've been invited to take a mini vacation to Florida and play some golf next month with a friend, but the last time I took a vacation we were at 1.74 and when I returned we were at .95. The second time I took another vacation we went to .47! Anyone want to chip in and keep me here in NJ?
Just got back from a "mini" vacation in VA. I haven't looked at the market since last Monday. Sure glad to see we're still going down :(. Last time I took some time to go college hunting it went from 1.74 to 1.20! Anyone want me to go away again?
Thanks WSM for the explanation.
What is 15C211?