Universal Energy Corp (UVSE)

[eddy2]

In stitu is very important to understand when it comes to natural resources.

Now many will claim that there is an expence whether the ground is used as storage or a building.

Let's look at prepaid expenses and the relationship of in stitu.

If a company was to prepay the administration and sales cost and leave the product where it was found how would that look as in stitu.

First there is the liability that death could apose should the subject die after being prepaid too manage the storage of the gas or oil in question.

So to get around that a derivative is formed to create a in stitu storage situation for its share holders. So one could say a derivative acts as a live insurance policy as well forming a institu.

This allows the directors and upper management to leave there position and let the derivative do its work.

So if there is no one too deliver the product then how is the derivative obligation met? Well in short it's met by the short selling of the stock. In other words the debt is collateralized by the assets in the ground. The underwriter be it Shell oil, BP, Chevron becomes owner of the equity.

Short selling is the term given when this takes place.

So what does the investor get. Well in short nothing cause the ride has long been over through a poor derivative deal constructed to return shares back to the treasury.

Now there is a catch that I like to call catch 22. That because there has been a total loss in assets that loss can be sold back to the one who acquired the equity for furtualy nothing. The difference is always split 50/50 taking in the loss of ones book value or par value of the stock.


15% of the last depreciated value quoted minus the par value is the new recovered value. If par value exceeds the 15% depreciated value then all is loss.