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Corvis Corporation (CORV) Message Board

  • marvelous_value marvelous_value Sep 29, 2004 10:55 AM Flag

    Split Simplified: Big Funds Can Buy Now

    Mutual Funds that were prohibited by their charter from buying stocks that were listed under $5 and under $2 will now be able to buy Corvis because it will begin selling above these waterlines.

    The timing for this change and reverse split was calculated because CORVIS HAS NOT WARNED and will also be able to RECOGNIZE FINALLY FOCAL's REVENUE STREAM since up until now Corvis has only been recognizing costs associated with acquiring Corvis.

    I believe the NAME CHANGE TO BROADWING is helpful, especially once the advertising campaign for VoIP begins. If you are in a national advertising campaign saying "Broadwing" over and over to eyeballs, who may want to invest, it may be more difficult for potential investors to discover that Broadwing was a subsidiary of Corvis. If 99% of the business is Broadwing and you are going to be promoting Broadwing, then let the SHARE PRICE GET THE BENEFIT OF THE BROADWING EXPOSURE.

    The net effect of this change will be that:
    1) Current shareholders will not lose any value

    2) The starting share stock price as of OCT 8 will be in the range of $17 (if 85 cents a share) to $22 (if $1.10) share, putting up in the range of telecom carrier competitors like Bell South (BLS @ $26.88, Southwest Bell (SBC @ $25.74, etc.)

    3) Mutual funds will be able to buy the stock without exception

    4) "Following the reverse stock split and subsequent stock dividend will be approximately 62,170,000 shares outstanding, making those who like Corvis-Broadwing-Focal's combined 3rd Quarter results have to bid on FAR LESS AVAILABLE SHARES.

    5) Short Sellers will be taking a bigger risk selling short with more potential buyers (i.e. mutual funds, etc.) to buy up FAR LESS AVAILABLE SHARES if sentiment on Corvis-Focal-Broadwing turns positive.

    6) Huber and team have shown savvy and discretion in acquiring both Broadwing and Focal. The management team has demonstrated long-term vision and short-term quick strike ability (i.e. Focal). They have easily found lenders for convertible shares at low 5% interest rates. With the Focal merger, they are about to become a $1 Billion dollar a year company, moving from SMALL CAP STOCK ARENA TO MID-CAP ARENA. Management makes all the right moves at just the right times.

    Good luck to all longs who act like longs!

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    • good post, I totally agree with you,
      Management took a bold step , Would be interesting to see the amount of interest it generates after r/s.

    • "2) The starting share stock price as of OCT 8 will be in the range of $17 (if 85 cents a share) to $22 (if $1.10) share, putting up in the range of telecom carrier competitors like Bell South (BLS @ $26.88, Southwest Bell (SBC @ $25.74, etc.)"

      You forgot the stock dividend. The market cap of the company will not change, at least as a result of the reverse split and dividend. A 1 for 20 reverse split will move the price to arount $18, but the 1 for 1 dividend will in effect lower the price back to around $9. The results of Focal may move the price, but considering only the reverse split and dividend, we're looking at $9.

    • 2) The starting share stock price as of OCT 8 will be in the range of $17 (if 85 cents a share) to $22 (if $1.10) share, putting up in the range of telecom carrier competitors like Bell South (BLS @ $26.88, Southwest Bell (SBC @ $25.74, etc.)

      -----------------------------------------------------------------

      Since the R/S will be followed immediately by a 1:1 share dividend, this means that the market cap would be doubled on the spot. Assuming that the fundamentals don't change by then, doesn't this mean that the current share price should move to $0.50 in order for all things to remain equal (since the number of shares will double immediately following the R/S shouldn't the current share price go down by half) ?

      Cheers.

    • if this stock opens up north of $10 i will kiss your ass, $20 is the equivalent to $2 now, so why isn't it at 2 now, and you think it will magically open at $20, no way, $10 if we are lucky

      • 1 Reply to neverabogey
      • BOGEY,

        1-FOR-20 REVERSE STOCK SPLIT, GET IT?

        "The company also said that its Board of Directors, under the discretionary authority it received at its Annual Meeting of Shareholders held May 9, 2003, has approved, as of July 28, 2004, a 1-FOR-20 REVERSE STOCK SPLIT. As a result of the reverse split, every twenty shares of common stock will be combined into one share of common stock. The reverse stock split affects all of the company's common stock, stock options and warrants outstanding."

    • The point 4 is key. This is THE point. This is the real benefit of this reverse split, i.e. Break Even is coming quicker....

      Good luck to all Longs!

    • The timing for this change and reverse split was calculated because CORVIS HAS NOT WARNED and will also be able to RECOGNIZE FINALLY FOCAL's REVENUE STREAM since up until now Corvis has only been recognizing costs associated with acquiring Corvis (read Focal)