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: RockyBalboa who wrote (66)	7/25/1999 11:03:00 PM
From: Q.	Read Replies (2) of 133

I think the best trading strategy for UAI is to remain short a full year. The reason is that UAI is part of the Russell 2000 index this year. Lots of fund managers bought it June 30, 1999 when the index was reconstituted, and they will have to sell it June 30, 2000, assuming the market cap has dropped before then. That will apply a lot of selling pressure to the stock at a very predictable time. This is exactly the kind of trading opportunity I love more than anything else: when I can use public information to predict, with good certainty, a stock movement at a specific time. No matter how low the stock is, and regardless of how few buyers there are that day, a lot of shares will be sold. Somebody with a short position can expect to buy back very cheaply at that time. Maybe below book value. There have been only a few times I've remained short a stock for a full year, but I think this one will be well worth it. Whenever the stock begins trading, if it goes below the book value I might box it then, and wait until late June to unbox. Otherwise I will simply remain short the whole time.

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