Today is a slow, so I have some time to respond to some issues regarding World Wide Casinos(WWC) & USAG.
-------- It is not this simple, but these are just the basics --------
1. USAG is the shell that WWC started accumulating. Due to this accumulation by WWC the USAG "shell" jumped up in price
from .02 to $1.30. At that time I can almost guarantee that the MM's shorted the stock.
ff5.quote.com
2. When acquiring a shell the key is to get controlling position which details having a 51% stake of the total outstanding shares.
In most cases however, you would want to get at least a 70% to 90% controlling position. Thus, you have the huge run from .02 to $1.30
3. shaking out the shorts - Now this part is what I enjoy the most. I have NOT seen sufficient short covering as of yet and do expect it to start to kick in around .90 to $1.05. Now at this time if the short covering begins you should see a gap up in price and a jump in volume.
The price usually falls back some after the shorts have covered and it should stabilize. After the shorts have been dealt with and the price has stabilized you do the reverse merger into the shell.
4. Most "shells" are not acquired in one day either. If you attempt to buy all the shares you want at once the MM's would have a field day with you. The $1.28 run up in price proves that point. You buy the majority at first, let the price fall back, and then buy a little here a little there until you have reached your control position % goal.
------ Now why is USAG worth at least $1.50 ? -------------------
I purchased 10,000 private placement shares in WWC for $3.00 a share and I also bought 20,000 shares of USAG @ .72
Now, the question is:
Why would you pay $3.00 a share for WWC when they are going to do a reverse merger in USAG, and you can buy USAG for .72?
The answer is:
At the time of the merger all WWC share holders will receive 8 shares of USAG for every 1 share of WWC they hold.
Thus, every share of WWC that I paid $3.00 for will be traded for 8 Shares of USAG, which at current prices is worth $6.24 ( 8 x .78)
Now to the value of WWC and USAG:
The value of WWC is est. to be between a conservative $12.00 per share and a speculative $18.00 per share.
We will use the $12.00 figure.
If WWC is worth $12.00 per share and WWC share holders are to receive
8 shares of USAG for every 1 share of WWC they own, that makes USAG stock price worth at the very least $1.50 ($12.00 / 8 )
The next question is:
If buying WWC private placement shares is such a good deal why buy any USAG at all?
The answer is:
Private placement shares fall under certain restrictions, and you are only allowed to sell a certain amount into the market. I believe that in this case the amount is 30% of the shares you own and if USAG trades for 90 consecutive days above an X price you may register and sell the rest of your shares.
By buying USAG which is freely trading I can trade ALL these shares as I can any stock and take advantage of the short covering that will happen.
1. Watch the volume and look for short covering.
2. Attempt to sell the shares at the top
3. wait for the price to fall back
4. if the price fall a significant amount under $1.50 range I will buy back and wait for the reverse merger which will take the USAG price to at least $1.50 (in my opinion.) and then sell them again.
------ My decision to buy WWC and USAG is not based at all on the product or if they have the best internet service or not.
IT IS PURELY BASED ON THE FUNDAMENTALS OF THE DEAL.
If anyone is interested I do believe that there are still World Wide Casino private placement shares available.
You may contact:
World Wide Casinos
2810 W. Charleston Blvd.
Bldg. G. Suite 67
Las Vegas, Nv 89102
1-800-600-2517 |
