Kaloyan Gadzhev

Cal Dive International, Inc. (OTCMKTS:CDVI) Spikes Sharply

by Kaloyan Gadzhev January 12, 2015

Since it bottomed out on Dec 15, the stock of Cal Dive International, Inc. (OTCMKTS:CDVI, CDVI message board) had been climbing relatively slowly, until last Friday. On Friday CDVI spiked sharply. Near the end of the session the price hit a high of $0.20 and ultimately closed at $0.182 per share for a 64.26% gain. The volume was also significantly higher than average – close to 6.05 million shares.

It appears, the move was based on technicals rather than fundamentals, as there hasn't been any significant news in the past few days. That's not to say the balance sheets of CDVI couldn't support the current price. As of September 30, 2014, the formerly NYSE-listed entity reported:

  • $237 million total current assets
  • $571 million total assets
  • $392 million total current liabilities
  • $411 million total liabilities

In a Dec 16 press release the company revealed that the appraised values of CDVI's fleet of vessels and diving systems were $307 million and $218 million, respectively. That's more than what is written down as net property and equipment in the quarterly. At $0.182 per share, the market cap of CDVI is just short of $18 million.

However, the main problem of CDVI can't be seen on the balance sheets. The company has been failing to fully utilize its assets and operations have been struggling. For the quarter ended Sep 30, CDVI reported a gross loss of $2.2 million and the net loss came up to approximately $42.6 million.

The last two sessions probably made new shareholders pretty happy with a 100% increase, but for those who have been holding CDVI shares longer than three months, this spike is hardly more than a sparkle of hope. Unless the company comes up with a way to turn things around, shareholders may have fewer reasons to be happy in the future.

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