Georgi Kamburov

Investors Are Not Afraid of Cal Dive International, Inc. (OTCMKTS:CDVI)

by Georgi Kamburov January 30, 2015

The stock of Cal Dive International, Inc. (OTCMKTS:CDVI, CDVI message board) has been among the most volatile pennystocks in the past couple of months. On December 8 the company got delisted from the NYSE national exchange and was relegated to the OTC market. On December 15 the ticker fell down to its current 52-week low of $0.126 while on January 12 it reached a high of $0.32. After a steep downtrend CDVI closed at $0.031 on January 26.

For the past three trading days the stock is once again surging up the chart on massive daily gains. Yesterday it added another 22% to its value and closed at $0.061. It seems that investors are once again rushing towards the company hoping for another amazing run up the chart disregarding the massive red flags surrounding CDVI.

Cal Dive have not been able to achieve a positive bottom line for nearly five fiscal years and the declining oil prices only made the situation even worse. The company struggled to restructure its $100 million first lien credit facility and to amend the second lien credit facility but now it is facing even more problems. The delisting from the NYSE exchange constituted a “fundamental change” under the terms of the outstanding notes and now their owners have the right to demand a re-purchase of the notes. CDVI, however, have stated that they will not purchase any of the tendered notes.

On January 15 the company also announced that they will not be making the $2.2 million semi-annual interest payment under their 5% senior convertible notes. If the money has not been paid in the allowed 30-day grace period CDVI will be in default under the notes for non-payment. In the same PR they also stated that less favorable options are being considered including protection under the bankruptcy laws. A Wall Street Journal article dated January 23 stated that CDVI may be starting to prepare the necessary documentation for a Chapter 11 bankruptcy.

Despite the allure of trading an ex-NYSE company pennystock investors should be extremely careful when dealing with CDVI. Do extensive due diligence and take into account all the serious issues around the company before putting any money on the line. 

Comments 8

1. Guest
February 09, 2015, 12:19AM

Quotes While Cal-Dive may own more assets, based on their own valuations, then debt they are carrying, who would buy those assets in today's market with oil prices dropping so low? Furthermore, those assets are old and not in the best shape. A buyer could get better assets for the same price. I just dont see Cal-Dive as a good investment. I firmly believe they will enter Ch.11, where they may shed debt, be restructured, and prepared for a merger, or they will liquidate. There is too much diving capacity. The whole industry would be stronger with Cal-Dive out of the picture. Also, keep in mind, this is a company that hasn't earned a profit in years. It's not surprising Helix divested themselves of this operation.

2. Guest
February 08, 2015, 01:31PM

Quotes selling assets in the current market place? buyers? why would a buyer even offer a reasonable price in this market? , there is allot for sale already as well as values from previous appraisals were all before the drop in price of oil.
Depending on Pemex backlog and asset sales seems very optimistic

3. Guest
February 02, 2015, 06:59AM

Quotes Cal Dive - CDVI hits .30-.40 this week!!!

4. Guest
February 01, 2015, 05:54PM

Quotes Cal Duve has more then enough Assets and huge back log of a few hundred million with Pemex. They can easily overcome this measly 2 million int payment, about time these co's fought back with these lenders gouging them with insane rates. Could see them close some non profitable operations in other parts of the world & some sale assets.
I'll tell you what though, Cal dive is definitely greater more then a lousy 5 million market cap they currently have. Could see this fly north of .50 the moment a new credit agreement is reached. This almost seems way to easy considering what's at stake here and assets involved. And yeah Huber and few others would know best :)

5. Guest
February 01, 2015, 01:11PM

Quotes Recent filings shows Cashman Equipement taking a rather larger equity position within Cal Dive - CDVI. Do some digging and you'll notice Cashman has recently added assets. Things could get very interesting from the looks

6. Guest
January 31, 2015, 03:21PM

Quotes Watch why Huber has been buying all along

7. Guest
January 31, 2015, 03:18PM

Quotes Looking for Huber to step in, he's sdded last few quarters and doing sir for a reason

8. Guest
January 31, 2015, 11:16AM

Quotes CDVI - expect some asset sales and a new credit agreement, co is fully operation and in full steam. Despite this noise re their small bond- expecting this resolved next 10-14 trading days along with some asset sales. Will see north of 25-.40 levels on announced deal. Co has way too much to offer with an enormous backlog of contracts in the hundreds of millions. As recently disclosed- many assets and options available

"During these discussions, the Company disclosed to the Holders third party appraisals that concluded that the approximate fair market value and net orderly liquidation value of the Company's fleet of vessels and diving systems were $307.0 million and $218.1 million, respectively, based on appraisals conducted in October 2013, February 2014, and August 2014. The appraised values of the Company's fleet are included herein only because they were provided to the Holders"

Type the characters that you see in the box (5 characters).