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Hmmm . . . I just returned from a 2 week trip and I see things have changed a bit with the stock price. However, I don't see any changes in the fundamentals of the company. In fact, moving to the pinksheets saves SEVI about $1,000,000/yr in reporting costs (according to a couple of e-mails from the CEO posted by other investors on the InvestorsHub SEVI board). That alone would give the company a 25% increase in gross profits. Nothing else appears to have changed. The value and potential of the company with their recent new multimillion dollar contracts are still a very good opportunity. So although I feel a bit roughed up by the drop in stock price, I'm considering investing more at these lower levels.
I also agree with Will that there is significant risk here. Nevertheless, since I felt that SEVI was a tremendous bargain at 0.0030 and since nothing has changed in the fundamentals of the company, I do feel that SEVI is an even greater bargain at 0.0012. Of course, I wish the management had been a bit more forthcoming about the change and had made a broader effort to point out the positive financial aspect of moving to the pinksheets.
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SEVI is back. The transition from BB to PK is complete and the E is now off their name. This transition will save the company $500,000-$1,000,000/year so hopefully that will be viewed as a good thing. Awaiting further news . . .
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This 70% jump this morning is a bit surprising with no news release. I was expecting such a jump, but with news. It's possible that the rise is due to StockMonster picking SEVI as one of its two stock picks today (***************.com), but their other pick (QTCE) is going nowhere, so I can't be sure about that. Their target price for SEVI is 0.003. As I've mentioned before, the target price for SEVI based on their gross profits from last quarter is 0.012, but I'm not sure the stock has quite that support yet. Any thoughts?
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(I'm reposting this here in case anyone is still looking at this somewhat out-of-date board)
SEVI’s Government and Healthcare contracts:
Recently, the focus of attention has been on SEVI’s new multimillion dollar permanent placement contract with Petrobras Oil (which was through SEVI’s “Next Hire” division). As a result, I had somewhat undervalued the extent to which their Consulting division has become the provider of choice for the State of Texas Government. Check out this link to SEVI’s website where they list the 20+ state agencies that have selected SEVI as their solution provider (including the Office of the Governor, Attorney General, Health & Human Services, Department of Transportation, Department of Education, Texas Lottery Commission, Texas Senate, University of Texas, etc.). From SEVI’s website, choose “Consulting Division”, and then choose the “Division Background” subsection:
To put this in perspective, the Texas gross state product last year was $927 billion dollars (or roughly 1/10 of the entire U.S. economy), and if Texas was still an independent nation, its economy would rank as the eighth largest in the world. (Think about it this way—the exports for the entire United States in 2005 amounted to $904 billion.) The State of Texas budget this year, including federal funds given to Texas State agencies, was around $125 billion (Dept. of Education--$33 billion, Health and Human Services--$30 billion, Dept. of Transportation--$15 billion, etc.) Hence, with this in mind, I plan to give much more importance to SEVI’s on-going relationship with the State of Texas.
Health Care Contracts—something additional that might interest you is a note at the end of the government contract list on their website--SEVI is branching out into health care database management. (Recall that Houston has the largest medical center in the world-—the “Texas Medical Center”: http://www.tmc.edu ). I’m sure there’s plenty of competition in this sector, but it seems they already have some contracts: “Currently developing a clinical trial data access reporting system for an international pharmaceutical testing company.” It would be nice to see SEVI’s Consulting division develop a strong footing in health care/pharmaceuticals to balance their current overweighted focus on government contracts. (Of course, their Next Hire division is heavily focused on the oil & gas industry, so that already provides some balance.)
If a White Spinning Top is observed after a long decline or a long black candlestick, this implies weakness among the bears and it is a warning about a potential change or interruption in trend.
Just sit back and watch. The MMs will run it and cash in. They have been working on SEVI for the past 6 months. The final phase of the work is to raise the pps. In a few days every thing will be clear and people will rush in.
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Here is some additional info I found regarding SEVI’s revenue as well as some additional articles about the new contract with Petrobras oil (some previously posted and some new).
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