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I submitted six questions for today's conference call. All six were read and addressed to my satisfaction.
Please read the last sentence in the Auditor's report in your post. It tells the whole story. It's conclusion is 180 degrees from yours.
My reading of yesterday's PR is that there are 2 financing components which are linked together. The first is the 6.7 million shares at $3.00. These shares can enter the market place starting immediately and yield $20 million less costs to financing agent which comes in the form of cash to CVSL now. The second is the 6.7 million warrants at $3.75 which will enter the market place at the stockholders decretion. CVSL will receive the cash when they are exercised which could be anytime in the next 5 years. The net to CVSL is $25 million less agent costs.
The bottom lne is that this package provides CVSL $45 million cash less costs over some period of time depending on when the warrants are exercised. The stock float can rise and additional 13.4 million shares if all the warrants are exercised. There is ample incentive to CVSL to get the pps to the point that owners of warrants want to exercise them. I don't know what that price is; but, my opinion is that it is well above $3.75.
Just my thoughts. Good luck to all.
New PR and SEC filings today with significant information on CVSL warrants. Good luck to all.
Today's announcement is a nice step forward. It is the first use of the S-3 shelf registration. However, I don't understand why they are using it at such a low pps. My data is old (2008); but, i says that only 1/3rd of the value of the public float can be used in any one calendar year. In our case our public float is 2,659,000 shares and 1/3rd is 886,333 shares. At $5.50 pps that is only $4.8 million which is doesn't cover the $5.5 million needed to cover the current aquisition and they are out of capacity for the next 12 months.
Does anyone else have a better understanding of how this works or more current information? I would appreciate you enlightening me.
On the surface, in order to effectively use the S-3 for more acquistions this year, they need to increase the pps significantly and quickly.
Thanks in advance for any help that you can give me.
Thank you. I did send a request to Scott to address the S-3 financing in the conference call.
This is the first time that I have been associated with a stock involved in S3 financing. My limited review of the articles on the internet indicate that the amount of financing at any one time is limited by the stock's marketplace float. Since I am a novice with S3 financing, I would appreciate a more knowledgeable board member enlighting me on how S3 financing really works.
I look forward to the CVSL journey ahead. TIA
I have been long in cvsl for 3 years as many others here have also been I seldom post. However, I see last Fridays announcement worthy ofcomment. CVSL management was on a business plan that was transparent to their shareholders. They made a last minute change. My belief is that they found a better deal for the shareholders. In my opinion, the benefits of the change are
1. We still get up listing
2. We use debt financing instead of equity
3. Our tradable float remains at 2.6 million shares instead of 6.1 million
4. We will get the targeted aquistions.
5. CVSL will have a wider trading range in the coming months
I personally appreciate management that will make the tough decisions.
Good luck to all in the coming weeks. It should be interesting.
Mtncabin
In my opinion, the May 23rd PR on infrastructure gave us some good insights on CVSL'S business model.
IMO, most direct selling companies are headed by market oriented leaders who see the infrastucture components of the business as a pain and therefore don't manage them well. CVSL is providing the infrasture (manufacuring, distribution, administration, etc.) in a painless and cost effective way for the direct selling companies.
The direct sellers while retaining control of their markets are then able to focus their strenghs into the marketplace.
IMO, this creates a business model that with yield market growth and bottom line performance well above industry norms with long term shareholders benefiting from both revenue growth and above average bottom line results.
Additionally having multiple direct sellers in the CVSL family will great a PR environment significantly more visible than a single entity business since each will be providing PR'S as well as the parent CVSL.
IMO, this is a dream that is about to come true for the longs even if it take a little time for other investors to really understand what is happening here.
All just mu opinions; best of luck to all; please do your own DD.
Good afternoon CVSL. I like the website. I think that it gives an image of simplicity yet elegance which I feel is right on target for the business model being created here.
I think that the pps has suffered because we have only acquired $100M in revenues in a quarter which is well below the expected pace to get to $3B or more in the next 2-3 years.
IMO we will see LOI'S in the second quarter for revenues well above $100M
Also,IMO we will see significant growth in our two current companies in the near future and I don't think that is priced into the current pps.
Looking forward to a great second quarter. All just my opinions. Good luck to all.
Thank you and stgman for looking into this and correcting the I-Box. Best of luck; I think that we have a long journey ahead of us.
Thank you for the response. I have been through the filings and still can't get them to add up to the I-Box numbers. The last 10Q that I have found was 10/28/12 which was through 9/30/12. I think that we are due a 10 Q through 12/31/12 in a few days. I will wait until it comes out as I am sure that they will have an accurate share count in it.
They are a good company with a bright future....I just want to keep current on share counts.
Thanks again for your response.
Does anyone know the due date for the fourth quarter 2012 filing. I noticed that the share count in the I-Box has some questions.
For 1/10/13 the shares listed are:
Heidi R 34.750,000
Lauren R 34,750,000
Richon Cap 357,086,000
Richmont 60,000,000
Total 486,586,034
Free trading 7,062,836
Total 493,648,870
11/27/12 O/S 487,712,326
Difference 5,936,544
Don't get me wrong, I have been in this stock for almost 2 years and am long and strong. I would just like an accurate share count. Maybe the next filing will tell us.
Good luck to all.
We should all remember. The CEO has a business model and plan to achieve it. He had an opportunity to set the share structure any way he wanted it. He set the share structure last fall.
There are no reports that I know of that tells me that he has changed his business plan. Therefore, he has no need to change his share structure. He has only used 60 million shares out of his inventory of almost 500 million shares for his aquisitons. His share price is still much lower than what he needs to make the prize acquisitons that he wants.
A fundamental look at his objectives tells me that the share structure isn't changing until we are much further along the acquistion trail. Dilution would kill his plan at this time.
All just my opinions. Good luck to all.
Penny stocks tend to peak and valley quickly because they lack solid business plan foundations to build from. CVSL has a business plan and it my opinion as we look back from January 2014, we will see a pps trend that looks like a series of increasing steps.
This stock is in no way typical. We have been given a once in a lifetime opportunity in my opinion.
Good luck to all.
Let's not forget the Dynasty Trust connection. The family's use of a onetime exemption is a commitment that should not be underestimated.
Given this Dynasty Trust, committed financial backing, and proven management team, there will not be much fertile ground for the bashers.
I have been looking for annual reports for direct seller which seem to be in short supply since many are privately held. I did find a 2009 Direct Selling New Global top 100 list by revenues.
It was on a ACN Direct Seller (number 21 on list) link:
wwwacnpresskit.com/DSN100_ACNpfd
Longaberger Co. was number 59. Also, I was able to find some information on number 31 USANA Health Sciences which has about $600 million in revenues and substantial profits. I have no idea if USANA Health is a candidate for CVSL. I only provide the information that there are 30 direct selling companies with revenues greater than $600 million; so finding a group of direct selling compamies with combined revenues of $6 Billion is reasonable.
Also, AVON a $7 Billion corporation was number 1 and Mary Kay was number 4. Given their positions on the top 100, my opinion is that neither are candidates for the first $6 Billion.
Just some information...please do your own DD and good luck.
I agree this is huge. As you stated in another post, indiviuals have a lifetime tax exemption of $5 Million for wealth transfer to the next generation. It is amazing that both John and his wife choose to use their full lifetime exemption on CVSL stock for their dynasty trust.
In my opinion, this signals that they have a long term commitment to CVSL; a long term growth horizon for CVSL; they intend to create significant trust value through CVSL (probably both pps and dividends over the long term); and they will manage any risks associated with this stock.
It will be interesting to see how the market prices CVSL. In my opinion, CVSL has a family committed to it with more "skin in the game" than normal and because of this commitment, there is less long term risk. Investing is all about the risk/reward equation. I personally like the answer to the R/R equation for CVSL.
All the above are just my opinions. Please do your own DD. Good luck to all.
I am looking forward to 2013 CVSL. I have been in CVSL for 18 months and never felt better about it. I was even able to pick up a few 0.15 last week to round things out. Best wishes and Happy New Year to all.
Our followers have increased from 135 to 143 in just a few days. CVSL is being watched. First acquisition pr and North we go.
It looks like we had 500,000 shares of volume mid-day yesterday.
In my opnion, this play is not about current financials. This play is about the 438 million shares valued at 7 cents per share (per 11/19/12 10Q). The shares are just like currency. The higher the pps, the less shares used in each acquisition on his quest to bring companies with an aggregate of $6 Billion in revenues into the CVSL fold.IMO, the incentives are to push the pps as high as possible as soon as possible. This will be through aquistion and crediable business model prs; not financial ratio calculations.
All just my opinion. Please do your own DD and good luck.
There appears to be major differences between this 10 Q and the one filed 11/19/12. Primarily, the $30+ million in paid-in-capital has been removed resulting in several other changes. IMO, we got a peek preview that we were not supposed to see. December should be interesting.
I agree that after the Board starts its work in December we should start seeing PRS. I am not an Accountant. However, from the 10K, it looks to me like Richmont invested $30.5 million for their 438 million shares (about 7 cents per share). These shares seem to be restricted for acquistions. IMO, this looks like they are serious about doing something big.
Looks like Rochon ran $35 Million through the CVSL books. IMO, he is serious about creating something. I hope that it is something that we like.
Looks like December 3rd may be a kickoff day. It could be that we are getting a preview of our first two acquistion candidates. Also, looks like Ridgemont is throwing a lot of horsepower into CVSL. IMO, good things are about to happen by the end of the year.
Good luck to all and have a happy Thanksgiving.
Thanks Funmaxus. Can you supply a link or the new website address. TIA
Interesting. Anything they do will be an improvement from our current position. Best of luck to all.
I think that May 15th is another filing deadline. Let's hope it brings good news. Good luck to all.
Happy Easter to all. This week should be interesting with financials due out by the 15th. I hope that it is a good one.
Nice to hear that you are in the sunshine. I live in Washington State with cool rain.
Thanks for the kind words; and my sense is that we have similiar personalities.
I do hope that 141 does come alive and we both recover some of our losses. At least we now have a little more promise than we did last year when it was zero chance.
Did you change e-mail addresses with your move to Hawaii?
Best of luck.
Hello M.C. It is good to hear from you; and I hope things are going well. I did exchange e-mails with Errol yesterday and he reported that progress was being made and the DTC issue was settled. However, I concur with BigGreen101's assessment about how this may play out. We have no recovery with this stock now; maybe, this will give us some recovery. We will see.
Again, good to hear from you and best of luck.
I did e-mail Errol and got a very quick response late at night. The questions I asked were related to the SEC/DDTC issue; SPZI/ONCP equity relationship; and his new business plan. The reply that I got in typical Errol fashion was: there will be further press releases to keep shareholders informed.
We shall see. Just information at this time; good luck to all.
Thank you for the information. I was coming off an earlier post that called for a 4th quarter filing date of 2/14/12. Other posts have now clarified that.
Still looking for good things from CVSL.
Good evening. I have owned CVSL for several months now and think the stock has a future. To my recollection, this is the first time that they have missed a filing date without filing an extension. Hopefully, they file soon.
IMO, it looks like they are trying to follow the rules, I can wait 5 more days.
Thank you very much for this information. It would be nice to recover part of our losses. I hope that 141 participates successfully. They still have the financing problem.
Good luck to all.
Long time M.C.
I looked up Howard Salamon. It appears that he has been in business 14 years.
He just (June, 2011) became associated with Real American Brands (RLAB). Their PR is almost identical to 141's. Their R/S was 1 for 20. They had a slight blip in stock price after factoring in R/S but trading is now at zero.
Just information. Good luck to all.
PJS has been paid about $2 million in Approved Expenses" and we have not seen any results in court yet. I find it hard to believe that the court would continue to approve these expenses unless there was some value to his work for the case. Just my opinion.
Yes, I did and we got the PR with the information that I expected...just late. Thanks for asking.