PATIENCE
This one is going to take patience, friends. The volume faded significantly from the jump on Monday, but keep in mind that was only...MONDAY! We're still in the same week as that jump, so any expectation for activity is going to have to wait. We need to be patient and forget about looking back towards Monday when it jumped. That happened but it's in the past now and we're moving forward. After Monday there was a severe decline, and now we're in a stagnation period. But this is a short stagnation period, not the kind that lasts months on dead volume.
My reasoning behind holding my 300,000 shares is this: UVSE is due for another PR release concerning its recent Lone Oak drilling project; there are only three possible outcomes: 1.) the drilling project is successful and they do initial insertion to extract oil samples; 2.) the drilling project is delayed or runs into trouble before finishing, which means it will take longer to complete, and lastly, 3.) the drilling project is a failure and there is no oil in the Lone Oak property. If Outcome #1 is the outcome, then UVSE will make a gain. If Outcome #2 is the outcome, then UVSE will continue to gradually slide downward and reach a bottom support level at which it will stagnate until the project finishes. And if Outcome #3 is the outcome, then UVSE will decline sharply and strike its previous support pricing at $0.01 to $0.012, but it will not go beyond since it has already shed 97% of its share value; at these levels, the downside risk is far outweighed by the upside potential, especially given that the entire company's value is NOT riding on this single project alone. They have other properties that are producing oil and gas, and they expect revenues up +200% to +300% for Q2 and Q3 of 2008 WITHOUT including the Lone Oak project. So basically, my conclusion as reasoned out in this manner is as follows: yes, there is downside risk as there is in all stocks, but with UVSE hanging at these levels the downside risk is very minuscule compared to potential gains it can make. And given that there is a project pending completion, the stagnation period we are seeing right now will be a short one. Next week will be an incredible week for all of those holding UVSE if you accept the reasoning I have outlined above.
Regards,
Ben
