Cal Dive International, Inc. (OTCMKTS:CDVI) Wipes More of Its Value
The stock of Cal Dive International, Inc. (OTCMKTS:CDVI) seems to be in a state of free fall and almost daily posts new 52-week lows. Since the start of October the chart performance of the company has been atrocious with only 5 sessions ending in the green. On November 5 it managed to surge by 70% but on very the next day it immediately slashed all of the gains. Yesterday it suffered another massive crash and closed at $0.069, nearly 23%% lower than the previous close.
Last Friday CDVI submitted its quarterly report for the period ending September 30 and it showed that the company’s financial results are still deteriorating:
• $9.6 million cash
• $237 million total current assets
• $391 million total current liabilities
• $114.5 million revenues
• $42 million net loss
Despite the impressive numbers the financial state of the company is quite depressing. When compared to the same period last year the situation gets even grimmer – current liabilities have more than doubled while the net loss has nearly tripled. The company has almost completed its two projects in Mexico but they are being continually delayed. For now CDVI expects to resume work at the end of December while completion of the projects should be achieved by the second quarter of 2015.
The company was able to amend its credit agreements but it will still need to find new finance sources and they may have rather unfavorable terms.
With the recent delisting from the NYSE exchange, the troubling financials and the massive outstanding debt (net debt has reached $275 million) the risks around the stock are significant. The company could drop to even lower price ranges and when will a bottom form is anybody’s guess.