UAI - Unistar - BB reverse merger that moved to AMEX Message Board

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Non-Tech : UAI - Unistar - BB reverse merger that moved to AMEX

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To: Q. who wrote (30)	7/22/1999 1:01:00 AM
From: Q.	Read Replies (3) of 133

where the $700 M market cap and all those shares came from: UAI has 24,370,422 shares outstanding as of April 30, 1999 I looked at the older SEC filings. In the reverse merger, Marc A. Sparks and Jeffrey Nelson got 19.8 M shares in return for their company, Fidelity Holdings, which had a single subsidiary ISCC, an insurance co. Fidelity Holdings was tiny. It had shareholders equity of only $1.9 M, negative earnings, negative retained earnings, and premiums earned of only $1.2 M in the 6 months. edgar-online.com What is remarkable is that those 19.8 M shares are now basically most of the shares out. That means that most of the $700 M market cap for this company is attributable to itty-bitty little Fidelity Holdings. Comparitively little is for all the other bits and pieces they have acquired. The public float was always small. Somehow those shares got bid up last year, while it was on the BB, to a double-digit stock price. I don't know how this happened. Presumably somebody promoted the stock. Whatever the reason, the result is that tiny little Fidelity Holdings is now priced by the market at an incredible level.

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