Replies to post #20428 on Universal Energy Corp (UVSE)

[eak435s]

thanks stock observer. the current situation makes more sense after reading those articles.

it is worrisome that raley may be forced to increase the A/S above 1.5 billion if CD holders demand it, since he can't turn them down if they want to convert to stock, even if he has the money to pay them off in cash. but they'll be paid off soon and hopefully we won't have to worry about it anymore.

[Stavros]

THanks stock_observer_77 thanks for the links and all the time you're puting into this.

I will search for more info too.

[mikeyk]

I know you said you discussed issues with Raley, especially the death spiral financing article you pointed to. Did you discuss this part from the 2nd page of that article?? I know I have asked Raley about this part, but never really got an answer on it or if he is pursuing this.


QUOTE:

But, in the past, some unscrupulous hedge funds that bought the bonds saw the floating conversion feature as an invitation to make money by literally shorting the stocks to death. In many cases, those hedge funds violated contract provisions forbidding any shorting of the company's stock.