I originally posted this research on Christmas Day 2006 on several boards in Investor Village:
Here’s some Christmas 2006 holiday research for you.
Keep in mind as you read the following story/research that President Bush signed the trade/tax break bill included normalized trade relations with Vietnam.
Cavico Corp(CVCP.PK) is the only US publicly-traded, Vietnamese company. They are currently undergoing an audit with the intent of seeking a senior US exchange listing. I hear that their auditors are Jaspers and Hall who are/were coincidently FRPTs auditors. I am figuring that they may need to do a reverse split in order to get their stock price up before a senior listing. They have around 90 million shares O/S but the float is only around 8 million shares. If they did a 1 for 10 reverse split I’m not sure how they would handle a float of only 800,000 shares so it’ll be interesting to see how they solve that problem. Maybe they will sell some insider shares.
Their revenue growth is strong with $45 million actual in 2005 and estimated $80 million 2006, $142 million 2007 and $160 million in 2008. Of course, all of these numbers are per the company and are in the company's Fact sheet. They have recently revised their estimates up.
The country of Vietnam is also the story since they seem to be moving quickly into the global economy. Cavico is in the engineering and construction infrastructure business, which should be in great demand in that country.
My thinking is that this stock could run as the story unfolds. That is IF it unfolds.
Very few investors seem to be interested in CVCP at this time. Member participation from Investor Village Friday morning: CVCP - 7 members / 7 guests (last 24 hrs)
Here is some research. The Fact Sheet is particularly interesting:
Home page: http://www.cavicocorp.com/
Investor Fact sheet: http://www.cavicocorp.com/factsheet.pdf
Interesting read on $500 million backlog: http://www.marketwire.com/mw/release_html_b1?release_id=154609
Recent PR's: http://finance.yahoo.com/q/h?s=CVCP.PK
Investor Village link particularly #66 and #70:
http://www1.investorvillage.com/smbd.asp?mb=4888&pt=m
Intel investment link: http://www.cio.com/blog_view.html?CID=26569
What I DON’T like about Cavico:
The company that helped them go public is Providential Holdings, Inc. (PRVH.OB).
An Executive VP with Cavico is related to the CEO of PRVH and PRVH got 4 million shares to help them get listed in the US. The related Cavico VP has also received some shares in PRVH in the last year. PRVH has also entered into several JV’s with Cavico.
Both companies share the same Huntington Beach address.
PRVH also sold 731,344 shares of Cavico Corp. stock during their quarter ended September 30, 2006. Several days’ worth of volume.
A little too cozy for me but I’ll take my chances
I will be bringing this relationship to the attention of the CEO and board of directors of Cavico in Vietnam so they are aware of this situation.
There is always something about a stock I don’t like and this is it for Cavico. There were also many things that I didn’t like about FRPT.
Bruce
