Universal Energy Corp (UVSE)

[eddy2]

Well the offering of credit is a much greater risk then receiving credit. You have much greater control when receiving credit then the issueing of it.

For this reason companies that issue it often trade at a huge discount. Take Coke they issue very little of it unless its a new product launch.

Now you may ask what this has to do with Universal Energy . The product is first sold as a underwrite tool to investors then resold too the market as a derivative that is again resold to the end user the consumer again on credit.


So by the time it gets to the end source it's been leveraged a thousand times, well maybe that is exaggerated some. The thing is if there is one break in the revenue supply chain the ripple effect will go all the way down the line to the source.


So its the share holder in the end taking that risk of the credit in the end. The big huge corporations they have the clout to minimize that risk through branding or controlling most of the revenue supply chain.


The best thing that can happen to a little gas and oil company like this is if a huge conglomerate can buy it out. This seldom happens unless they can deleverage them selfs from the revenue credit chain they have tied them selfs too.

Anyhow anytime you see lots of treasury stock on the books, outstanding shares along with share holder debt holding the notes it's a huge risk. Now if taken out by a conglomerate it could be a huge up side.

Hey lots of conglomerates will start a small outfit like this " bank roll it " and control it with there own people. This is often referred to as puppet tearing a company but you or I don't know if this is happening. The same puppet masters can also control the revenue chain but we don't know that for sure either.


Speculation is all that we have my friend in these highly leveraged issues on the pinky sheets.