Universal Energy Corp (UVSE)

[mikeyk]

I highly doubt we'll see a rise in the PPS until the naked shorts are covered. This also explains the purpose of driving the share price down to maximize share count on conversion. Here's the theory of how it works:


Toxic CD holder knows he is going to convert sometime soon. So at this time he starts naked shorting the stock. Eventually he has driven the share price down low enough that he requests conversion. He then dumps the shares he received further driving the share price down, and then starts BUYING TO COVER his naked shorts. This is why he doesn't care about taking a loss on the shares he converted and sold, it's all made up on the BUY TO COVER for the naked shorts. So until all the naked shorts are covered, you have the MM's artificially hold the PPS down to maximize their profits. The MM's play the game because this creates more commisions for them, plus then they can also resell the shares for another gain. In the process they screw us the shareholders and the company.