CVSL, Inc. (OTCMKTS:CVSL) Jumps on PR Activity, Momentum
CVSL, Inc. (OTCMKTS:CVSL) keeps delivering, after being awakened once by the mid-October promotion. On Wednesday, the ticker added more than 24% to stand at 24 cents, on one of the most active trading days of last month. Buying volumes reached $247,000. CVSL stands at a three-year peak following a rising trend that took off at the beginning of the year. But the robust volumes are easily attributed to the promotion. 
Computer Vision Systems Laboratories Corp., the company’s full name, has chosen to acquire other direct selling companies, and thus build a lucrative portfolio. So, the main news around the company are new acquisitions. Formerly, the ticker and abbreviation also stood for Cardio Vascular Medical Device Corp. Let’s see if the change in roles did anything for the company’s bottom line. All those acquisitions have built: 
- $18 million cash
- $66 million total assets
- $29 million total current liabilities
- $2.8 million quarterly net loss
- $20.1 million gross sales
It seems CVSL is enormously active, and may be in for a great future, as it rode over the rough patches in the past years. The company has a market cap that is still relatively high, at $360 million on more than $487 million shares. And there is also the question of why CVSL took so long to take off, and if the upward trend would hold well enough.
The company also released a new PR stating that it had agreed to buy Blyth,Inc. (misspelling it to Blythe) for about $268 million. Still, there is not a formal filing for the upcoming purchase, and at this point investors see the deal as just publicity bait. So far, CVSL has just sent a letter of proposal for the buyout- and this one-sided approach is definitely far from a complete deal for the NYSE-listed direct marketing company. It is quite possible that the upcoming deal is no more than name-dropping, given the fame of Blyth, Inc. as a producer of personal and decorative items.
We last looked at CVSL in its previous incarnation as a medical technology company, back in 2011. Then, the ticker made another run on high trading volumes, reaching about 30 cents. CVSL has several similar spikes to show, usually followed by a correction of 30 to 60%.
Now, it’s a wait and see game for this ticker, which is among the newcomers of the active OTC shares. The active trading of CVSL recalls that of Biozone Pharmaceuticals, Inc. (OTCMKTS:BZNE), which also grew suddenly in volumes, but so far is struggling to make a clear trend.
International Stem Cell Corp. (OTCMKTS:ISCO) is another recently active selection, which nevertheless corrected its peaking trend.
If you are still confident in the deal potential of CVSL, as well as the stock’s potential to make a good run, be also prepared to absorb the losses.
