WEB NEWS CFO Trail
On November 23, 2011, Philip Bolles
tendered his resignation as the Company's Chief Financial Officer and the Principal Financial Officer.. In his resignation letter, Mr. Bolles cited that he was resigning "due to lack of operational and financial support for the corporate finance department" Hung Manh Tran, the Company's Executive Vice President, will serve as the Company's Principal Financial Officer.
Investor Alert
On September 1, 2011 , Cavico Corp. (the “Company”) received notice that Timothy Pham resigned as a Vice President of the Company, effective on September 1, 2011. Mr. Pham will continue to provide independent consulting services to the Company.
On November 18, 2011, the Company received notice that Madhava Rao Mankal resigned as an independent member of Board of Directors. The Company has decided not to fill this vacancy. Mr. Mankal did not cite any disagreements with the Company.
On November 23, 2011, Philip Bolles tendered his resignation as the Company's Chief Financial Officer and the Principal Financial Officer.. In his resignation letter, Mr. Bolles cited that he was resigning "due to lack of operational and financial support for the corporate finance department" Hung Manh Tran, the Company's Executive Vice President, will serve as the Company's Principal Financial Officer.
Liquidity Requirements
As of
September 30, 2010 , the Company had a contract backlog of approximately $303.3 million. We intend to meet our liquidity requirements, including capital expenditures related to the purchase of equipment, purchase of materials, and the expansion of our business, through cash flow provided by operations and
funds raised through equity investments . We may also use short term bank loans to meet our liquidity requirements
Investor Alert
On April 18, 2011, Cavico Corp.
received notice from The NASDAQ Stock Market (“NASDAQ”) stating that the Company is not in compliance with Listing Rule 5250(c)(1) for continued listing due to the fact that it was not able to file with the Securities and Exchange Commission its Form 10-K for the year ended December 31, 2010 by the due date.
Deal Flow
We have entered into a sales agreement with Rodman & Renshaw, LLC relating to shares of our common stock offered by this prospectus supplement and the accompanying prospectus. In accordance with the terms of the sales agreement, we may offer and sell up to an aggregate offering price of $7,500,000 of shares of our common stock, $0.001 par value per share, from time to time through Rodman & Renshaw, LLC acting as agent.We have entered into a sales agreement with Rodman & Renshaw, LLC relating to shares of our common stock offered by this prospectus supplement and the accompanying prospectus. In accordance with the terms of the sales agreement, we may offer and sell up to an aggregate offering price of $7,500,000 of shares of our common stock, $0.001 par value per share, from time to time through Rodman & Renshaw, LLC acting as agent.
CFO Trail
HANOI, Vietnam, Jan. 24, 2011 (GLOBE NEWSWIRE ) --
Cavico Corp. today announced that Philip Bolles has been named Chief Financial Officer, effective immediately. Mr. Bolles is familiar with Cavico and its businesses from serving as an independent director on Cavico's Board of Directors and its Audit, Compensation, and Nominating committees. He has resigned from the Board of Directors to assume the role of CFO. Mr. Bolles will replace June Kim, who resigned as the Company's Chief Financial Officer for personal reasons unrelated to the Company. Ms. Kim will continue to serve the Company as a consultant, her role at Cavico prior to being appointed CFO.
Research
Shares of CAVO rose sharply or $0.59 to $2.23 in yesterday's trading session, in a response to contract news :
The contract is valued at $6 million and includes cost escalation clauses that may increase the revenues associated with the project. Under the terms of the contract, Cavico will be responsible for the construction of three tunnels, a surge tank, and a power house. Cavico expects to complete construction by 2014.
We do not believe the move in the stock was warranted or based on fundamentals
Deal is only $6.0 million and will take three years to complete. We don't see how this deal can significantly impact a company with about $60 million in revenues.
Company is losing a ton of money
Based on its current operating activities and backlog, the company modifies its previously stated guidance for the fiscal year 2010 financial results, projecting revenues of $59 million to $62 million, or roughly 4% growth from fiscal 2009 revenue without considering currency rate fluctuations. Management anticipates a net loss of $6 million to $7 million for fiscal 2010.
The Company's backlog as of September 30, 2010 was $303.3 million compared to $304.6 million as of June 30, 2010. The backlog amount at September 30, 2010 is derived from the end of the second quarter backlog minus work completed plus new contracts signed during the third quarter of 2010. Cavico will continue to provide periodic updates when additional major contracts are confirmed.
The Company anticipates that gross profit will increase during the remainder of 2010 and during 2011 as a result of higher revenue and lower costs of revenues on continuing projects, leading to higher margins.
Barring any significant contract news or 2011 positive guidance, we feel this stock should retrace it recent move. We have taken a short-term short trading position above $2.00.
Deal Flow
Liquidity Requirements
Cavico Corp. announced that it has filed a registration statement on Form S-1 with the Securities and Exchange Commission (“SEC”) for a proposed secondary public offering of its common stock. It is currently contemplated that the offering will consist of the sale of approximately $15 million worth of the Company’s securities.
At current prices the offering would translate into an additional 93.75 million shares.
