TSIF's PLAY of the DAY: WorldVest, INC - WOVT.OB YOYO on a frayed string.....
"Play of the Day" are HIGHLY Volitile at the time the call is made. Many are VERY low volume equities. They may be big board stocks or tine OB stocks. We expect changes of 20% or more over a short time window. Due to the volume and the nature of these stocks we do not recommend making either a green or red thumb. Limit orders are HIGHLY recommended. Note, however, that they may not kick in until some volume moves, (minutes, hours, days, weeks, months). We are not responsible for CAPs scores gain or losses.
Play of the Days are only for those seeking more "thrill" and are impatient with slow stock market days where the S&P swings a mere 2% or less. They may triple or drop rapidly or linger for a year or more.
WorldVest's dips kept it just below the $100 Million pick threshold the last two days, but it nudge above it near close today with a near record 12,000 shares trading.
This could mean that my down call is in trouble, but I tend to doubt it. Now that it's pickable, (assuming there is any volume if a FOOL puts in a call), I thought I'd use it for TSIF's "Play of the Day".
News did come out yesterday after hour that might explain the 12,000 shares that traded WorldVest, INV up today.
"Hurricane Global Resource Corporation is an acquisition, development and trading company making strategic worldwide commodities related investments with an emphasis on iron ore properties and reserve assets in Latin America. Hurricane is an operating subsidiary of WorldVest, Inc. a Global Merchant Bank" ..... Apparently signed a joint venture agreement to launch a Chinese Iron Ore Sales office in China. "Hurricane is currently evaluating opportunities to invest in and develop global reserve assets into producing iron ore mines for the benefit of the consortium. While pursuing its long-term mineral acquisition and development endeavors, Hurricane has begun sourcing interim supply and plans to broker iron ore transactions on behalf of its buyers."
I'll leave it to the reader what this could mean in revenue, based on my original thesis.
WorldVest, Inc, took a dip to the $0.26 range on a 1000 shares. 500 at $1.01 and 500 at $0.26, indicating how "fragile" this one is. Hard to say who bid it back up, but my guess is that an insider caught on to the low share sale and heavy share price hit and sacrificed himself by buying 1000 shares to drive it back up to $1.70. 2,500 shares traded hands and the equity did an 80% dive and retrace.
WorldVest does have a business plan, some employees from a merger, and indicate they can get through 12 months without further financing. It is unlikely I'll be on this play long unless it yo-yos above and below the $100 Million, $1, CAPS pick threshold, in which case I'll reprint this pitch, but will have limits set to exit and enter.
This is an example of what happens on an equity with few shares actually out. Sometimes some are issued for work done. Clearly the first 1,000 were sold on an open market order. The seller was probably surprised at the return that his payment in stock netted him. I have no idea if it was insider, such as Garrett with his 51 MILLION Shares, who helped the correction by buying the 500 shares that put the share price back up. Clearly it's more fun to go to bed at night with 51 Million shares of a $1.70 equity in your mattress than 51 Million at $0.26. His net worth fluctuated about $76 MILLION on paper today during the exchanges of $4,000 worth of transactions.
Worldvest shows $38 THOUSAND in cash and $5.6 Million in Debt. Net book value MINUS $0.08 per share. $36,000 in revenue in the last three years combined.
21 August, 2009 quarterly 10Q:
"Plan of Operations
During the next twelve months, we seek to continue to develop our Global Merchant Banking infrastructure and complete the final closing of Banco Porto Seguro as it transitions into Banco WorldVest International. We also plan continued expansion of our Asset Management division through the growth of StormWorks as this time we have identified a limited number of unique transactions located in the United States, China, Brazil, and South Korea. We also plan to raise USD$15 million in new capital through a Regulation D private placement offering, which was launched on August 14, 2009. "
Limited Operating History
We have generated approximately one full year of financial information and have not previously demonstrated that we will be able to expand our business through an increased investment in our product line and/or marketing efforts. Our business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our new products and/or sales methods.
If financing is not available on satisfactory terms, we may be unable to continue expanding our operations. Equity financing will result in a dilution to existing shareholders"
They do have a business plan, some employees from a merger, and indicate they can get through 12 months without further financing. It is unlikely I'll be on this play long unless it yo-yos above and below the $100 Million, $1, CAPS pick threshold, in which case I'll reprint this pitch, but will have limits set to exit and enter.
TSIF Signing off (The SKY (IS NOT) Falling) today, but one can't be sure with all this rain!