CVSL / JRJR Update – 19% of Public Float Owned

February 17, 2016 at 10:38 am 3 comments

As of the open on February 17, Groove participants now control 19% of CVSL’s publicly traded float, up from 15% in our last CVSL update on January 29. The buying among our community participants has accelerated significantly since CVSL management released the $49-$50m expected revenue range for Q4, as this wholly put to rest the most damaging of the rumors that we believe were being spread by short sellers – that the company had experienced a significant downturn in Q4. The indicated revenue range makes it clear that CVSL is actually performing better than expected and the company’s responsiveness in taking the aggressive actions we proposed to address the naked short selling situation gives us confidence that they understand the importance of protecting shareholder value. Additionally, discussions among several active CVSL owners in our group have led to several ideas that we are culling to craft the best combination for additional recommendations to CVSL management – steps that will further ensure that those who would use illegal methods to try to push CVSL shares lower than they should trade on its merits will determine that it is in their best interest to ply their craft elsewhere. We are completing a comprehensive due diligence review of each proposal and we will share what we learn with the broader community shortly.

CVSL shares represent a tremendous bargain trading at just over $1 which equates to a $35 million market cap for a company that we expect to produce $190-$200m in revenue over the next 12 months.  The public float of CVSL/JRJR is rapidly being acquired by savvy investors and they may soon be joined by short term traders and short sellers seeking to cover part or all of their bet prior to the DTC share accounting and reissue process that will start over the next couple of weeks.  In summary, CVSL/JRJR represents a very cheap stock given its stock price / market cap relative to its operational performance and prospects, but there are near term developments that may bring other investors / traders into the fold to compete for the remaining CVSL shares in the public domain.

Advertisements

Entry filed under: micro cap, micro cap short squeeze, short squeeze, small cap stocks, Uncategorized. Tags: , , , .

Groove Community Update – Inuvo, Remark and Rave CVSL- JRJR Networks and the Elephant in the Room

3 Comments Add your own

  • 1. John  |  February 17, 2016 at 2:15 pm

    Just added 5,000 shares to my position. This is a good one…

    Reply
  • 2. P. Warren  |  February 18, 2016 at 9:05 pm

    1. The company receives a “share intel” report monthly. That’s how they originally found the naked shorting. Has the company given an update on that situation?

    2. One part of combating the naked shorting was changing the trading symbol along with the change in the cusip number which was really the key. When that number is finally changed will the company have to do a filing so shareholders know what’s going on?

    3. Does anyone know what the official earnings date release is?

    Reply
  • 3. jwbuffett  |  February 22, 2016 at 12:27 pm

    Thanks for being a part of the Groove community! Yes, new post this morning includes the update as of Feb. 1 that (per shared notes from conversation with IR rep late last week) shows the near 2 million share short position still outstanding. I do not know if a filing is required when the cusip symbol changes, but I believe that shareholders will be able to see this through their brokerage account. I am not aware of an official earnings release date yet, but I know BDO will be doing its first 10k because they were hired in Q2 of last year, so the first full year report may make the filing closer to the SEC deadline than it would have been otherwise. Thanks again for your comments!

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to follow this blog and receive notifications of new posts by email.