Dragni Dragnev

Cal Dive International, Inc. (OTCMKTS:CDVI)'s Rise Didn't Last

by Dragni Dragnev January 14, 2015

Cal Dive International, Inc. (OTCMKTS:CDVI, CDVI message board) had a nice green run that lasted for about a month. Said rise culminated in a spike that started last Thursday and continued to Monday, but unfortunately for CDVI's supporters this sudden growth proved unsustainable.

As the charts indicate, an abrupt and crash befell CDVI in yesterday's trading session. The ticker plummeted down from the very opening bell, and although there were a few pushes that gave investors some hope that it will recover in early trading, it fell all the way down to the $0.15 mark and hovered around it for the rest of the session.

As we've mentioned before, CDVI is far from the poorest or most unfortunate companies on the OTC Markets. It was formerly traded on the NYSE, its reported assets totaling in the hundreds of millions. Indeed this is the reason why some CDVI enthusiasts are of the opinion that the company is currently severely underrated and its stock is grossly undervalued.

Presently, it is hard to tell whether said claims are close to the truth or not, but one thing is certain - there is a very good reason why it CDVI is currently on the OTC Markets' pink sheets. Its net loss to current assets ratio is certainly more in line with what you would expect from an unsuccessful OTC Markets penny stock company than from a NYSE-traded industrial giant.

This has cost the company a lot of credibility over the last year or so, and it continues to drag the ticker down. Rumors that the company's “fleet has aged tremendously and is essentially obsolete” and that it “will be forced to announce bankruptcy” that keep cropping up don't help it retain ground either.

In conclusion – unless there is a very positive turn of events related to CDVI in the next session or two, it will likely lose the gains that it has made in its most recent green sessions. Indeed, if things go badly, the ticker may fall even further down.

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