UNIVERSAL EXPRESS INC - USXP Message Board

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Microcap & Penny Stocks : UNIVERSAL EXPRESS INC - USXP

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To: Loren S. who wrote (333)	6/30/1998 1:57:00 PM
From: TraderGreg	Read Replies (1) of 2493

Loren--I would definitely agree that management was selling and I believe they will continue. Look they had issued 37 mm shares as of 3/31 and the max authorized was 50mm shares. Assuming they cut a deal with the floorless debenture holders, they would need to raise the authorized to do that and also buy Skynet. An increase in the authorized requires a proxy vote(they would have had to give shareholders notice, something Don Ricardo probably would not want to do). By doing the 1 for 70, the outstanding would be what 500 to 700K(based on pre-split 37 to 50 million) shares but the authorized is still 50 million. He can do a lot of diluting with that. Until the SEC forces companies to reduce their authorized in the same proportion as the reverse, this type of scene will continually be played out. Reverse splits are simply invitations to dilute. When a company can't show the NASDAQ requirements without the reverse, the reverse certainly won't get them there.

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