One thing that makes me wonder is why CMBV gives a stock dividend without an active business model, or revenue, much excess revenue...
Correct me if I'm mistaken on the definition of a what a stock dividend is: "A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (stock dividend) or other property. "The companies that offer dividends are most often companies that have progressed beyond the growth phase, and no longer benefit sufficiently by reinvesting their profits, so they usually choose to pay them out to their shareholders." Stock dividends do affect the distributable equity (or the equity of the company that can be distributed to shareholders in the form of dividends) of the company. Simply, a stock dividend is a reduction of distributable equity. Distributable equity includes the balance in Retained Earnings and/or Paid-in Capital, depending on the state of incorporation.
Don't get me wrong in my post here, I'm not bashing nor pumping. But posing a question to all shareholders, on how a company (CMBV) who seems to be trying to put together a business model, will do so with no cash. Doesn't it seem that CMBV would be better suited on using the monies that they gave to shareholder in the form of a stock dividend for the company? While yes there maybe Outside investors, Put yourself in the investors (Banks, Underwriters, ect..) shoes. Would you lend money to a company that is giving away monies to shareholders, instead of using it for expansion and growth, or in CMBV case initial start-up.
Let me say this next I'm a SHAREHOLDER of CMBV with a good sized position. I also like getting free money ie. Dividends, but when a company is in the position that CMBV is in it makes me wonder.
What is the motivation for CMBV's move. Well its all a bunch of speculation until heard from the horses mouth via PR's. One thing that is hard overlook is, what has the company accomplished so far, since inception. Ok to give benefit of doubt, just since it changed its name to CMBV for the pursuit of gold in Cambodia. You can't tell me this company has never done a reverse split before, heck doing DD with just the chart alone indicates the possible R/S. Why is there no Chart history for CMBV past 2 years, when it has been Incorporated in 1995?
Given all that as been said to this point, I can't help but not to pretend that everything is sun, fun and bubble gum with this stock. I would like to see this company succeed and make money, as well as all the shareholders, but it is in danger of reaching that range that companies love to R/S, .001 and lower. I have even seen companies do a R/S with a pps higher than .001.
What does a R/S do for a company, besides make itself look unattractive in most cases? It generates monies for the company gives workable capital by using shareholder equity to either expand or acquire company/ies, AND/OR helps the company meet requirements to be listed on a better exchange (rare but it happens). The more shareholders the more equity the company can receive via R/S, on a much higher pps.
Hmmm... how does a company plan generate monies with no active business model, that it clearly needs to proceed as a "going concern" for the future of the company? Maybe that 25% ownership in the Canadian Bio Med company will suffice, I doubt it. It seems CMBV is luring investors in will monies it can't afford to give away at this point. Pink's and OTC's, are the MOST unlikely stocks to do such a thing, especially whilst still in the development stage. So caution is prudent in these situations, IMO.
Again I didn't post these thoughts to start a wizzing contest, or to be a negative Nancy. But like a stone tossed into a pond, waves are bound to be created. An open mind and maturity is needed to really get to the bottom of this conundrum. I have made bad plays before and unfortunately it will happen again. There are still a lot of questions left all surrounding CMBV, and it's ongoing promise to shareholders. Some clarity would be nice to say the least.
