Actually there are several companies I know of with a PE of 1, with little debt too. Most of them are overseas merger companies on the OTCBB (SGAS). Some are even on the nasdaq (SNEN). The reasons that companies with ownership structure like theirs (and cavico's) command low PE's is because investors here have very few rights, and the companies frequently turn out to be scams. Thats why you never see insider buying or dividend payments. Even the buybacks are frequently just PR's worded in such a way where they don't actually have to buy back any shares.
Regarding the fundamentals, I agree that now is not the optimum time to do a reverse split, with deteriorating fundamentals in the company, country, and the industry. But it needs to be done at some point.
This company will probably NOT win investor's trust as long as they stay on the OTCBB. I'm glad to see that they are not sitting on their hands here and are developing a plan for uplisting and a higher level of respectability.
"With all due respect John302, I don't believe you have any idea how to value a company or understand how a public company increases its valuation, i.e. share price, market cap."
With all due respect, I've watched tons of foreign reverse mergers come and go and get exposed - the valuation game is completely different than for "normal" companies. That you don't know of any companies with a 1 PE shows you may not be up on how little traditional valuation affects stock prices in this space.
"Don’t advise the company to make a wrong corporate action that will further destroy investors trust in Cavico."
If the company is getting advice from an IHUB message board just let me know now, lol. That you think so also shows a level of naivete...with all due respect.
