Who Is Taking Over One World Ventures (OTCMKTS:OWVI)?

The share price of One World Ventures (OTCMKTS:OWVI) has been on the rise during the past week; it has increased from $.0002 to $.0012 (100% increase) over a three days period. During this period, its traded volumes have also risen to nearly 400 million as shown in the chart below: 5 years chart for OWVISuch a price movement led our team to assess whether the stock gains will continue or it is only a short-term reaction. On the upside, the stock needs to close above the $.0016 mark to tick higher. Bearing in mind the price action and the 52-week volume record, we concluded that the downside is limited. A close below the $.0009 mark would be worrying, but with the previous momentum, we don't see downward movements very likely. 1-month chart for OWVICompany HistoryOWVI was incorporated in Nevada on July 7, 1997, and is headquartered in Las Vegas, Nevada. It consists of a holding company investing in technologies, communities, and systems that facilitate trade, finance, communication, and travel across international boundaries, cultures, and languages.Amidst the process of transformation, OWVI shifted its operations from manufacturing to developing systems and technologies for the transfer of money and services using the Internet to reduce costs, enhance service quality and speed of transfers. With initial operations in Hong Kong, OWVI designed a combination of commercial business interests with social media, which was believed to be unique in the industry.The inflection point happened in the year 2010. The company commenced a serious restructuring process that led to the change of the CEO. Ron Lindsay, who had been secretary and Information officer for a long time, took over as CEO with the objective of focusing on the development of new technologies.Almost eight years after the company commenced to change the business model, it is time to check the state of the company. Let's revise the assets that remained, and those which were sold. In our view, this process will help us determine the future of OWVI.Please note that companies finishing restructuring phases tend to outperform in the following years. The reason is that the managers select the most performing assets and divisions and create a solid ground to grow.[embed]https://www.youtube.com/watch?v=eikfArKjQ50&t=[/embed]The sale of assetsAs of December 31, 2010, OWVI decided to sell its interests in Chinese Tutamen Manufacturing operations. As noted in the last annual report, the company opted to sell the retail operations and retain the technology, which is meant to be "a key component of the future business." The assets were finally sold after negotiations on February 15, 2011.Financial OverviewThe company has been working on the sale of assets and restructuring for the last seven years. As a result, the management seemed to have some difficulties in releasing the new financial statements. While the last balance sheet and income statement showed that the financial situation was beneficial, please note that these statements are quite old and may not represent anymore the financial situation of OWVI.The company has total assets equal to $0.29 million including receivables of $0.15 million, and Information Systems worth $0.13 million. While the total amount of assets diminished by 65% as a result of the restructuring, but it is remarkable that the net assets remained positive. The total amount of liabilities was equal to $0.057 million. With regards to the income statement, OWVI showed, in the last report, a positive net income of $32,312.72 before taking into account the non-operating loss on assets’ disposal. The total amount of shares outstanding is equal to 3,500,000,000 as reported by the exchange.What's making the stock price jump?We initially faced problems in understanding the recent price action, since OWVI has not recently released any new information. We had to check what other market participants are telling about this name. The most significant due diligence has been made by ihub forum members. According to it, reverse merger specialist David Lazar is taking over OWVI: A reverse merger? - ONE WORLD VENTURES OTCMKTS:OWVIWhile we are usually quite skeptical about information found in chats, blogs, and financial forums, but we need to mention here the facts. If the market is moving because of this new information, our readers should get to know it. Forum members found documents, which indicate that David Lazar is acquiring or has acquired the company: David Lazar Linkedin - ONE WORLD VENTURES OTCMKTS:OWVI David Lazar - ONE WORLD VENTURES OTCMKTS:OWVIWhile there are market participants who believe in this story, we need to warn readers about the following. Until the exchange releases the change of control, OWVI is risky. Undoubtedly, if the rumor is correct, market participants would receive stock returns, since a reverse merger would mean a lot for OWVI. With that in mind, if Mr. Lazar does not close the deal, the share price could retrace and the losses would be large.In this story, it is very important to understand that the following is not always true: Buy the Rumor, Sell the News - Buy the Rumor, Sell the News - ONE WORLD VENTURES OTCMKTS:OWVIConclusionCurrently trading with a market cap of $5.6 million, OWVI is an exciting story among small caps. With 3,500,000,000 shares outstanding and a float of only 400,000,000 shares, everybody is expecting a lot of market volatility on OWVI's stock chart. Hence, it is mandatory to understand the risks involved. There are people making fantastic gains, but there will be others who will need to lose money too. This is a zero-sum game!Disclosure: We have no position in OWVI and have not been compensated for this article.Image courtesy of Matthew Hurst via Flickr.