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.
A reverse merger Never! adds any value to a company. The only thing it will accomplish is make Cavico stock even more illiquid and provide market makers and shortsellers (or investors wanting to dump shares) easier and back down to 10Cent.
Think about it mathematically. You need a stock price of +$5 to be on the NYSE… that means a 1:50 split. That also means that you will have only 2.6mill shares outstanding. That’s very illiquid!
Cavico has only two issues: lack of investors trust and poor fundamentals. Your first fix needs to be fundamentals. To build Cavico into a larger and stronger company requires fixing the balance sheet by reducing its heavy debt load which weighs on EPS. This will create more EPS/FCF and reduce debt even more. A kind of positive spiral. Once it gets to an optimal D/E (debt/equity) Cavico should start buying back its shares. That will accomplish two things; it will create a bullish market for Cavico shares and, again, increase EPS.
At one point we will have any EPS of 10cents… or a p/e of… 1. I don’t know any company that has a P/E= 1, even after this selloff. I know many that have turned negative :). With those fundamentals it could attend any conferences and easily show “new” investors, through exiting financials, that it’s a cheep company and deserves a higher price.
You cannot trick the market into increasing price per share. Cavico has to earn it!
Cavico has to be in this for the long-run and so should you.
John302 be patient or sell your shares! Don’t advise the company to make a wrong corporate action that will further destroy investors trust in Cavico.
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