Part of the Richmont/CVSl problem is that they cannot do the” big deal” unless they have the currency.
They can do lots of little deals. But little deals will take years to show any bottom-line results. And by doing lots of little deals they will run out of currency unless they dilute current shareholders.
By currency we mean stock or equity. With shares in the 20 to 30 cent range, they just do not have the currency to do anything big. The shares by virtue of being just pennies are basically worthless.
Richmont needs the share price of CVSL stock to be at least above one dollar per share to do the 50 to 100 million dollars deals, but ideally, 2 dollars to 3 dollars per share or better.
The more expensive CVSL shares are, the fewer they would need to use to acquire larger entities, thus preserving their currency (the stock).
They need a big PR push and the IEG report seems to be part of a strategy to raise the price of the shares. At this early date, the stock did not budge much and volume stayed low. They need massive PR to raise the price. And they are hoping the low float will get them to the Promised Land. But this stock like all penney stocks are orphans. And there is only so much money to go around. And so far they have attracted none of it. We thought it was quite unusual for the CEO to even mention the CVSL float. And by doing so, it is apparent he is relying on a much higher share price before he can begin to even think about doing any deals that would increase the top and bottoms lines significantly. The latest potential acquisition must have insignificant revenue, since it was not even mentioned in the press release.
A long wait is in store.
