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Hi Lucinda, good day to you.
CVM had a very bad experience 7 months ago. Capital totally dried up, within a two month period of time, investment capital just totally dried up. During that span of time, any company in start up mode, and that relies on the sale of stock to finance operations were in a world of hurt. Some did not make it through....their obligations were not variable enough to allow management to weather the storm, and they folded. CVM was approaching the working capital cliff, and I think got close enough to look over. Geert did not like that feeling, and he saw how far down the bottom was.....he didn't like that either. He will not put the company in that position again. The shelf is an opportunistic move. It is there in case someone comes along willing to buy a major block of shares at a price that the company thinks is reasonable. But clearly he needs to wait to utilize the shares made available through this shelf until he can minimize dilution. They are well capitalize right now, however, the H1N1 opportunity has thrust upon the company cash flow requirements, I'm sure, that were not anticipated a year ago, or even six months ago. Gert knows that his cash flow model has changed, and needs to put the company in a position, through the shelf, to raise additional working capital should the company need to do that. Now, here's the real important point for we investors.....the shelf is there because of the POTENTIAL need to use it, right? The potential need to accelerate working capital creation would only be the case if there were viable and promising things to spend the money on, right? So for those of us watching recent company developments, and taking those developments to a favorable outcome (particularly the JH's study), one could easily understand the need to have a shelf out there, ready for investors to sink their teeth into within a 24/48 hour period (post positive and compelling news). I love seeing the company going out with a bold statement like this with this shelf offering......they have confidence. So what are they confident in? That's the 60 thousand dollar question. If they just need cash, Geert would go out with a shelf grabbing $2M, $5M maybe even $10M....but $40M??? That's a big shelf for CVM. That conveys management confidence. That is good for us. Exciting days ahead, and congrats for buying wisely today! Me too. (The overall risk of the stock going lower, or back down into the the below $1 levels gets higher by the day, so buying on smaller dips instead of waiting for it to go back below a $1 is prudent. Now it might go down that far, but I'm saying the probability of it continually going back down to those levels are getting fewer, and fewer, and fewer with each passing PR article.) Rating :
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X, I am interested in your opinion.
Lucinda
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lucindasloa... |
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11-Nov-09 01:26 pm | ||
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Re: to xji : What is your take on the shelf?
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xji590 |
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11-Nov-09 01:45 pm | ||
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Thoughtful post.
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chickenhead... | Rate it | 11-Nov-09 01:49 pm | ||
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Hi again Mr chickenhead. This whole thr...
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teddy1898 | (1 Rating) | 11-Nov-09 05:35 pm | ||
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Back to the top of the heap, no disrespe...
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hurricaneji... | Rate it | 12-Nov-09 03:06 pm | ||
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Now this is a post. Of course I'm no ex...
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hurricaneji... | Rate it | 12-Nov-09 03:23 pm | ||
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Great post, xji!!! Well done - 5 stars!
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hitting4ave... | (1 Rating) | 11-Nov-09 01:51 pm | ||
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top of the world!
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hurricaneji... | Rate it | 12-Nov-09 04:20 pm | ||
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My IQ is going back up again after reading th...
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cvmgutcheck... | Rate it | 11-Nov-09 01:53 pm | ||
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xji, thanx for the explanation makes plenty o...
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whynot1790 | Rate it | 11-Nov-09 01:54 pm | ||
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Excellent insights!
I too got (positively) e...
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nerdmajeure | Rate it | 11-Nov-09 01:55 pm | ||
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thanks for your thoughts...hope your right......
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dougholen1 | Rate it | 11-Nov-09 01:58 pm | ||
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Xji - tremendous post of clarity and inspirat...
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jonathon_ho... | Rate it | 11-Nov-09 01:59 pm | ||
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Excellent post XJI, Oh and I would also like ...
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texacoon62 | Rate it | 11-Nov-09 02:00 pm | ||
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good post xji
yeah, some don't love this t...
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fosco.sinib... | Rate it | 11-Nov-09 02:01 pm | ||
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X, I knew I could count on you to clearly art...
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lucindasloa... | Rate it | 11-Nov-09 02:02 pm | ||
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Great, thoughtful, intelligent post XJI. Thi...
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wintersmast... | Rate it | 11-Nov-09 02:08 pm | ||
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Totally agree! Good to see you back. I don't ...
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yinh76 | Rate it | 11-Nov-09 02:10 pm | ||
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thanks, a helpful post
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tropical333... | Rate it | 11-Nov-09 02:14 pm | ||
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Most of the posts on these message boards are...
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hcadamsiii | Rate it | 11-Nov-09 03:01 pm | ||
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Excellent post.
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toomanyjust... | Rate it | 11-Nov-09 04:56 pm | ||
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Excellent post.
GLTA
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pour159 | Rate it | 11-Nov-09 05:03 pm | ||
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Thanx X, your one of the very few I take stoc...
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hoganhawk47 | Rate it | 11-Nov-09 07:43 pm | ||
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xj,
That is arguably the best thought out ...
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town_and_co...
Online Now
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Rate it | 11-Nov-09 08:59 pm | ||
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they never use the shelf while it trades...
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mthsbth | (1 Rating) | 11-Nov-09 09:09 pm | ||
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i think a partnership will be announced very soon....
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clausonwill | (2 Ratings) | 11-Nov-09 02:01 pm | ||
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why do they need big money for a partnership?...
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padreneben | Rate it | 11-Nov-09 02:03 pm | ||
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Can they just sell a partnership for the...
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cortese.lon... | Rate it | 11-Nov-09 02:07 pm | ||
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so the partner has an interest in the gr...
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clausonwill | (1 Rating) | 11-Nov-09 02:12 pm | ||
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Clausen is right here folks. Think...
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xji590 |
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11-Nov-09 02:40 pm | ||
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Once again X great post. Now I...
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texacoon62 | Rate it | 11-Nov-09 02:44 pm | ||
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It just keeps getting better.
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lucindasloa... | Rate it | 11-Nov-09 02:51 pm | ||
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Dude you have what it tak...
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cajunrock1 | (2 Ratings) | 11-Nov-09 03:16 pm | ||
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Again, good dissecting. This i...
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yinh76 | Rate it | 11-Nov-09 05:13 pm | ||
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Exactly.
It's not being set up a...
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paulsilhan@... |
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11-Nov-09 05:35 pm | ||
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absolutely right.
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xji590 | Rate it | 11-Nov-09 05:38 pm | ||
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X, See how much help you ...
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lucindasloa... | (1 Rating) | 11-Nov-09 05:43 pm | ||
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And if in fact this shelf...
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paulsilhan@... |
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11-Nov-09 06:00 pm | ||
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On TOP!
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fh1672 | Rate it | 12-Nov-09 08:34 pm | ||
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Because then the money sp...
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paulsilhan@... | (1 Rating) | 11-Nov-09 06:05 pm | ||
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Geert always said that they wanted to go it a...
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frankforwin | Rate it | 13-Nov-09 07:10 am | ||
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Thanks a bunch for sharing all this with us xj. We...
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imax_01 | Rate it | 11-Nov-09 09:14 pm | ||
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Keep on top!
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fh1672 | Rate it | 12-Nov-09 04:22 pm | ||
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Tip Top post deserves top billing, sure as he...
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hurricaneji... | Rate it | 12-Nov-09 04:32 pm | ||
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one more deserved trip to the top
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hurricaneji... | Rate it | 12-Nov-09 06:48 pm | ||
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and another, why not? It's better ...
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wintersmast... | Rate it | 12-Nov-09 07:03 pm | ||
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...putting it up top just to pizz-off "The" stockv...
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sadnock | Rate it | 12-Nov-09 08:53 pm | ||
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up...up...and away, to the top.
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hurricaneji... | Rate it | 13-Nov-09 06:36 am | ||
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back to the top with a better take than ...
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hurricaneji... | Rate it | 15-Nov-09 09:16 pm | ||
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back to the top to mute djohdj the ...
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hurricaneji... | Rate it | 16-Nov-09 11:22 am |
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