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Re: Sunrise_Surfer post# 14862

Monday, 08/18/2008 12:04:59 PM

Monday, August 18, 2008 12:04:59 PM

Post# of 32583
you imply a pertinent point, and I've already factored that in by saying once Q2 and Q3 come out UVSE will regain higher pricing but it will take time, and it won't be a return to the 0.50 to $1 level either since that means UVSE will be worth 125 million to 250 million as a company, and it is not worth that much unless it opens more wells for production. Also, there is still a large degree of fear and uncertainty priced into this stock on both the macroeconomic and microeconomic level.

Investors/traders are fearful and uncertain at the macroeconomic level due to the global instability of markets right now, and at the microeconomic level the U.S. economy is experiencing recession. So with UVSE, it priced highly before based on no revenue at all because it was just a new IPO that people wanted to get a piece of, but once the company took all of these steps to dilute, the market cap. valuation also had to readjust. Yes, the stock priced around $1 to $2 before, but that was also when there was far less than 250 million shares outstanding. So you have to understand that it is priced lower now due to the higher supply of shares and lowered demand for these shares. The demand is low especially now because the energy commodities bull run has slowed down significantly since starting last summer. UVSE will return to a higher pricing above a ridiculous $0.01, but it will have to maintain a float of 250 million for now and it will also have to regain the enthusiasm and attention of traders/investors. I am optimistic about this stock, but my optimism is constrained by the limits of realistic thinking, so that is why I intend to sell at or between these two pricing levels: 0.03 to 0.05.



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