Replies to post #1194 on eik''s stock talk

[eik]

I am not an expert at all… That’s how I understand this form 10QSB - layman's description in layman's language. :) SGDM agreed to buy UniverCompany in “all stock” deal for 41 mln SGDM shares. Later, it was “contemplated” that instead they will pay 15 mln shares plus $1 mln in cash (unsecured loan with no specific terms for repayment is called “gift” in my book). So, the first interesting thing about this transaction (if I understand it correctly) is that UniverCompany agreed to receive $1 mln cash instead of 26 mln restricted shares. It’s about $0.03/sh of real money for shares that are currently priced in dollars, but nobody knows what the price will be in 2 years when they become unrestricted. Maybe they didn’t expect such a rally in SGDM PPS and agreed that 15 mln is enough… The second interesting thing is that Hampton Park Capital arrangement. It’s probably the most successful operation in Hampton’s history. For $1 mln they actually got 2 mln SGDM shares half of which couldn’t be sold below $2.5. Usually, all shares are restricted, but nobody knows exact terms of the agreement. Lucullus is claiming that insiders have been selling all the time. Even today after the catastrophic price drop Hampton’s holdings are worth $1.11 mln. They are up 10+% in a few months… But somehow I believe they have already returned their money more than once - @ $7 they could sell (short) just ~150K shares to get their million back, and if they sold all 2 mln… and if they shorted some more…?

I am not sure this is clearer than the text of the form. Plus unlike the form my interpretation could be wrong. :)

What puzzles me at this point – I was unable to find UniverCompany anywhere in Russian sources. And I found many smaller entities before. The name “UniverCompany” doesn’t sound Russian, rather like westernized version created for external use. I have one substitution - BaikalGeo (based mostly on names comparison), and this is very small company – there are dozens like this in Buryatia:
http://met.expoweb.ru/searchproisv.cgi?Id=44043

Interesting finds, euddoggwyn. Thank you for your efforts!