I am puzzled by no news. If they want to pull something nasty like previous management, they would have been pumping the stock and exaggerating the news from the last quarters that did show a reduction in operating losses and increase in revenue. But there is an absolute quietness.
Per my research, I am hoping that 10Q that they plan to announce before 15th MAY covering JAN to MAR will be better than the previous quarter. We will see the continuous improvement in all the metrics.
The only thing I can think off is that they wanted to get the note holders out which it seems that they have been successful. Because in the past whenever they used to release any news, note holders used to dump millions of shares and take all the benefit.
Now the million-dollar question is warrants. Per last 10Q, there are about 60 million warrants that have a price of 0.024 cents and will expire around June 2017. If they can somehow force these warrants to expire, then the stock will really move up and there are only close to 8 or 9 millions share s in the market.
Let's assume, I am a warrant holder and have 20 millions warrants and the current stock price of UOIP is 5 cents. I would be stupid to pay 0.024 times 20 million = 480K to UOIP to get these warrants and then sell it back in the market. The price will tank because the existing shares in the market are only less than 10 million, and I won't even get my 480K back. Moreover, how do I know that as soon as I pay 480K to UOIP, the UOIP does not release millions of shares in the market raising capital (right now, it is borrowing from outside) and tank the price. I may only take this risk if the price goes above 30 cents or so, but will UOIP let the price go up to 30 cents before June 2017 because they have the total control to tank the price by releasing the shares. It seems that this is why they are not releasing any news and focusing on the business. But the upcoming 10Q will tell some story. I believe that the they will be some upward movement in the stock price but not enough to let the warrant holders to take all the benefit.
What do you all think ? Am I smoking pot here ?
- Ice
