Cab-tive Advertising Inc. (CBVA) can now be regarded as an established penny stock as the company recently received clearance from the NASD for listing on the OTC Bulletin Board and Pink Sheets. Started trading its stock back in December, last year, Cab-tive Advertising registered 2,000,000 shares of $.001 common stock in order to raise $100,000.00.
On May 4, 2007 all the subscriptions have been received from 28 investors, raising $98,500.00 in proceeds, net of $1,500.00 of offering costs.
The company had $12,000 of operating income from inception (September 22, 2006) through June 30, 2007.
For the quarter ended June 30, 2007, the registrant recognized revenues of $6,000 and a net loss of $27,199.00. Some general and administrative expenses during the year were accrued. Expenses for the year were comprised of costs mainly associated with legal, accounting and office.
At June 30, 2007 the company generated lease income and may rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending continued development of the company's business model.
The Stock
Though, the stock has been active for very short period, the price of it is quite misjudged. At the time of polishing up this article the stock fired up to the highest peak of all-time hitting a price of $2.00 per stock.
In mid-August the stock was priced only 1/4 of dollar. The number of shares traded is however very low to this stage.
I reckon, the stock is overestimated at this scale of time and soon it should be heading straight down to the bottom levels.
As of June 30, 2007 the company had 6,750,000 shares outstanding, which puts the company's market cap to $13.5 million.
The Product
Cab-Tive Advertising, Inc. offers advertising to a captive audience in taxicabs, people movers, buses, ferries, limousines, airplanes, and monorails. The company's engineered units deliver an audio and visual presentation that reaches out to multiple senses.
However, the company must be too optimistic to grow in this type of business area, as the industry in this sector is packed like sardines. Cab-Tive Advertising is just a tiny ant among the super-sized giants.
It would be hard to expect that this company could shake the boat, given the fact that not much time passed after the company had started to play fairly.
A few References
http://quotes.nasdaq.com/asp/summaryquote.asp?symbol=CBVA&selected=CBVA
http://www.cab-tive.com
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