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[Gene-discuss] VIVI acquires American Airlines subsidiary with 24 Millio


From: SmallCapInvestor
Subject: [Gene-discuss] VIVI acquires American Airlines subsidiary with 24 Million in revenue
Date: Sun, 09 Oct 2005 17:09:45 -0800

We issued a Trading Alert on Viva International (OTCBB: VIVI) last November when the stock was trading at just $.04 a share and watched as it skyrocketed to $.76, a gain of almost 2000% in a matter of weeks. Well it looks like the stock might be moving to new highs again as they announced the acquisition of Regions Air (www.regionsair.com).

Company: Price Alerted High Since Alert % Gain Day Alerted Days After Alert to High
ELU $.90 $1.34 48.9% July 31, 2005 Aug 11, 2005
HESG $.87 $1.26 44.8% July 20, 2005 Aug 2, 2005
EDNE $2.76 $9.96 260.9% June 6, 27 2005 Aug 1, 2005

Established in 1996, RegionsAir, is a regional air carrier that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates their fleet of commuter aircraft as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE: AMR). Yes that American Airlines.

For the fiscal year ended December 31, 2004, RegionsAir posted operating revenue of approximately $24 million . So with this acquisition VIVI now has revenues of over $24 million but the share price has not caught up with actual value. VIVI has been trading the past 6 months between $.11 and $.16 with almost no revenues giving it a market cap range of a paltry $4.95 million to $7.2 million. So if VIVI was worth that with no revenues what is it worth now over $24 million in revenues? Let's take a look at some other low cost air carriers.

JBLU LUV VIVI
Market Cap * 1.99B 11.94B 9.9M
P/S (Price/Sales) 1.38 1.73 0.04125

So if we valued VIVI with the same metrics as these other airlines then VIVI's market cap (share price X shares outstanding) should be somewhere in the range of $33 million - $41.5 million. Which would give us a share price in the range of $62-$.92 and that is a gain of 300% to 450% above Friday's close. This announcement came so quickly it has caught the public off guard giving us a great opportunity. This looks to be one time where the little guy (you and us) can have the opportunity to get in on the ground floor.

Look at the chart below and tell me which company has the best chance of making a huge move to the upside?

Viva Executes Irrevocable Letter of Intent

to Purchase a US Regional Airline

Friday October 7, 11:09 am ET

MIAMI--(BUSINESS WIRE) Oct. 7, 2005--Viva International, Inc. (VIVI.OB) announced today that it has executed an irrevocable Letter of Intent to Purchase the entire air carrier operation of Smyrna (Nashville), Tennessee based RegionsAir, Inc (www.regionsair.com).

Established in 1996, RegionsAir, formerly Corporate Airlines, Inc. is a regional air carrier that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates turboprop commuters as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE:AMR).

For the fiscal years ended December 31, 2003 and 2004, RegionsAir posted operating revenues of approximately $24 million for each year. More detailed financial data can be obtained from a review of Regions DOT filings that are available to the public.

Robert Scott, Chairman of Viva, commented, "This acquisition provides Viva with a strong internal operational subsidiary that will allow us to expedite our growth plans on a cost-effective and efficient basis. Further, this combination adds experienced aviation management to all of our aviation subsidiaries. We are pleased to welcome RegionsAir and its employees to the Viva family of companies."

RegionsAir provides air service to (11) area cities in Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee from hubs in St. Louis and Nashville in conjunction with an air service restoration program subsidized by the federal government. The Federal program is referred to as Essential Air Services and provides for financial guarantees and support for certain flights and routes making the Company self-sustaining while offering a solid platform for Viva's beneficial Caribbean markets.

"We are excited about assisting Viva in bringing turn key operations and capability to their Caribbean marketplace and we believe as Viva does that the opportunities to expand within the Caribbean are excellent, commented Doug Caldwell, President of RegionsAir. We have the infrastructure in place, including the air carrier certificate, operational experience and the staff necessary to operate all of Viva's routes in the Caribbean in addition to our existing routes and EAS service opportunities. I expect the combination with Viva provides a nice vehicle to bridge Regions air service operations with Viva's sales and marketing efforts."

Under the terms and conditions of the LOI, Viva will acquire RegionsAir's entire operations as a wholly owned subsidiary including its air carrier certificate, aircraft, maintenance facilities and airport stations agreements. Viva has already begun the due diligence process and has deployed a team to Nashville to review the books and records of the company to meet a November 15, 2005 completion date.

An interview with Viva's spokesman, Pier S. Bjorklund, will be held today at 12:00pm EST on www.ibcradio.com for more information on today's announcement.

About Viva International

Viva International, Inc. ("VIVA") is a publicly traded holding entity (VIVI.OB) that specializes in acquisition and development of undervalued commercial airlines and aviation outsourcing companies, collectively referred to as "VIVA." The Company's strategy is to develop a network of airline operations and subsidiary partners to collaborate in maintaining route structures in "niche" markets and to provide high quality products and services to the air travel industry, focused primarily on the air travel market in the Caribbean. VIVA has established a primary executive office in Traverse City, Michigan, including airline operations headquartered in Santo Domingo, Dominican Republic and San Juan, Puerto Rico.


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