Youbet.com (UBET)

[CheezyTang]

i love this stock....but....

right now, it is dealing with its purchase of UT group...."United Tote".

about 1 month ago, they forced UT to sell their remaining shares they held that they received from the sale.

Also, the big decline on Nov 7th, was from when they really missed the analysts estimate from a gain in EPS to a loss of a penny EPS. That, i think, was due to the purchase of UT. I can confirm.

with this virtually behind us, I feel good about this stock in the next month. If you research my posts....almost EXACTLY one month ago, I made an opinion on the FAT CATS board that this can very well be a 10-30% gain in a month...

well, Tuesday, my month is up, and I am down in this by 8%.

Now, this was reviewed by a Seasonality GURU named Kgoodrich....he said it has a good chance at a run in February, AS LONG AS THE NEWS IS WITH US.......

well, currently the news was not with us.

here is a sample of the latest filing on Jan 23rd...2 days after i bought it...lol

As previously disclosed, under the stockholder rights agreement between Youbet and UT Group, LLC entered into in connection with Youbet's acquisition of United Tote Company, the shares of Youbet common stock issued to UT Group are subject to a make-whole provision pursuant to which Youbet must pay UT Group, on or about February 19, 2007, a one time cash payment equal to the amount by which $5.50 exceeds the weighted-average trading price of Youbet's common stock for the five trading-day period ending on February 9, 2007, multiplied by the number of shares delivered by Youbet and then held by UT Group on February 9, 2007. The stockholder rights agreement also allows Youbet to cause UT Group to use its best efforts to sell some or all of its Youbet shares on or prior to February 9, 2007 at prices below $5.50 per share, provided that Youbet pays UT Group a make-whole payment equal to the difference between $5.50 per share and the price per share at which UT Group was forced to sell its shares, multiplied by the number of shares sold at Youbet's request.

On January 23, 2007, Youbet delivered notice exercising its right to force the sale of UT Group's 2,181,818 shares of Youbet common stock (the "Forced Sale Notice"). A copy of the Forced Sale Notice is being filed with this report and is incorporated herein by this reference.

On January 24, 2007, Craig-Hallum Capital Group, LLC, as broker for UT Group, consummated the sale of all 2,181,818 shares for $3.45 per share, and that sale is expected to settle on January 29, 2007 in accordance with the normal T+3 settlement cycle. All of these shares were registered for resale on a registration statement on Form S-3 previously filed by Youbet.

UT Group has agreed to pay Craig-Hallum customary fees for its services. In the Forced Sale Notice, Youbet agreed to pay UT Group the aggregate make-whole payment of $4,472,726.90 no later than January 30, 2007.

link~~~~~>

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001010192-07-000019&Type=HTML

So, that killed the stock in the interim.


Good luck.

Dan