Replies to post #14400 on Universal Energy Corp (UVSE)

[mikeyk]

I'm still trying to put all the peices together nyself, but it looks like there was ashare increase once bfore from 29 Million to 250 Million. Don't get me wrong, there should be some dilution from the 29 to 250, and now the increase from 250 to 1.5 Billion, but not to cause this stock to go from its high of around $2.55 around July 2007 to the current $0.01 range, that's 13 months. Revenue was reported in December 2007 from the 1st wells and more have come online since, revenue is increasing quarter after quarter and more wells are in planning phases. It's normal for companies to increase O/S share count as they grow until they can hit the break even point and have stock available for additional debt and stock options.

There is more going on here than share dilution, and it's not coming from the Company side of things. The last couple of days has shopn a huge BUY/SELL imbalance, sometimes 6 to 1 on the sellers side, and the sellers are controlling the PPS and knocking the PPS down. That means the MM's and Brokers have a large glut of stocks sitting on their books right now, there should be no shorting at this point, and I cleared all naked shorts with my SEC complaint.

I believe we have finally hit bottom here, we've been pretty steady in the $0.01 to $0.0125 range for the last 2 weeks. We know 2 definate events happening, the 10Q on Friday and the shareholder vote on the 20th, and in between a possible PR before and after, and the 3rd quarter 10Q coming 12-13 weeks after the 2nd quarter 10Q on August 15th. We know guidance has not changed from the $300-500K 2nd quarter profit and $800-900K profit 3rd quarter, possible more 3rd quarter since the Cavier wells are producing better than expected. Lone Oak #2 should be drilled and logged, possibly in production before the 3rd quarter 10Q is released, thus possibly blowing way past guidance for 3rd quarter. Also share structure should become more clear in the next 2 weeks.

These are the facts we know now and guesses on where we are going from here, PPS should start rising. The MM's have managed to hold and drop the stock price for past 2 months, but good 10Q's will take this control away from them.