Replies to post #25699 on Universal Energy Corp (UVSE)

[mikeyk]

There are 6 billion now, there is a definate risk of this going to 60 billion to cover another $4.46 million in debt. If the company has to repurchase the shares at a minimum of .0002, it will cost them $8.8 million in cash, where do you think their going to come up with that kind of cash that isn't another CD, which again will be tied to stock conversions?

[igetbored216]

Okay. I am well aware that buying back shares is not rocket science; I know how companies buy back shares and retire them. What I was asking was how THIS company - a company who had to use three CDs for financing and obviously has no cash flow - was going to buy back billions and billions of shares (hate to break it to you, but it's going to be ALOT more than 6 billion shares once all of the CDs are retired). A R/S is the easiest way out and probably the path that will be taken in my opinion.

Buy more shares to counter the R/S? How much more? One million? Hundred million? A billion? You would have to buy a fair amount to "counter" the R/S that Raley will have to do to bring down the amount of O/S down to a reasonable number. Considering how this company has been managed, I would not put more of my money on the line...that's for sure. I will stick with my $100 investment and see what happens, but I just have a feeling that all of us are going to be SOL when all is said and done.