Universal Energy Corp (UVSE)

[BMiles]

Some of you have PM'd me and asked what my thoughts are for next week. My thoughts remain the same as what I posted yesterday as I copied below. I think next week will be a good week full of news but that is just an educated guess on my part.

Posted by: BMiles Date: Saturday, July 19, 2008 5:49:44 PM
In reply to: fenian32 who wrote msg# 11446 Post # of 11529

Well.... Here is one way to look at this -

We were lucky enough that the CEO was honest enough to have announced the intentions of an increase in the A/S ahead of time. We all complained because it killed the run at .039 cents but one way of thinking about it is how many people would have gotten burnt if the news hit at 10 cents??? To be hones, all of us smarter investors who know how to read SEC filing and understand CD's knew it was coming anyway.

So anyway.... The announcement came and the stock tanked, it bottomed, it reversed, and then it consolidated. Now here we are at .022 and the actual proxy filing has been made. Though this should already be priced into the stock, I assure you there will be some nervous investors who will sell Monday morning. How much downside is left considering most who were going to sell have already sold??? I don't know??? Maybe the base of the rising trend line will hold at .018. One thing I know is this still remains the most read board on all of IHUB - http://investorshub.advfn.com/boards/most_read.aspx thus everyone is watching this one for a reason.... That reason is the right time to jump in and make money. One thing I can assure you of is that this is not the most read board because there are a bunch of people out there waiting to see who gets left holding the bag, they could care less about that. They are watching because they know there is a play coming here.

So Monday we are likely to have a short spell of selling take place in the morning from the last of the nervous people even though it is old news and should already be priced into the stock. All those watching have been waiting for the filing of this proxy. They have been waiting because nobody really knew or knows what affect the proxy filing would have on the stock. Even my thoughts about how this trades on Monday is only an educated guess based off my own trading experience. Once all those people watching this thing see it hit a bottom, they are going to start to come in. They all know there will be no dilution killing this thing until the second half of August, they know great news is on the way with the Lone Oak well, they know the Lone Oak reserves if proven are worth around $127,500,000 to UVSE, they also know that revenue from this first well could quickly extinguish the remaining CD's. Here is a good post made by "brodyterrier" which speaks about the potential value of Lone Oak - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30805684 The post is incredibly informative.

The proxy on the increase in A/S was actually supposed to come last week, I wish it would have so it would have been out of the way but probably for strategic reasons they waited. Why would they wait until now??? Probably because the drilling of the first of 4 Lone Oak wells is supposed to be complete this weekend. This means we have a string of information to digest over the coming weeks that could keep the stock climbing. First we have the announcement of the drilling completion, then the logging of the well, then the pressure testing, then the gas going to market and what revenue the well will officially generate, and then new revenue guidance for the company. Long story short is I think they may have timed the filing of the proxy with the release of the company's most powerful PR's in it's history considering the value of the Lone Oak reserves and what it means to the company going forward. My thoughts are to watch for the first PR Monday morning after the Monday morning selling is over, that is if there is any selling on Monday morning.

This is all just speculation on my part and keep in mind that I am assuming the well will be successful. There is always that risk the well will be a dry hole but that is a risk one has to decide if he wants to take or not.

Brad