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Non-Tech : UAI - Unistar - BB reverse merger that moved to AMEX -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (36)	7/22/1999 11:28:00 AM
From: Q.	Read Replies (1) \| Respond to of 133

USIS (OTC:BB 18 1/2) is another BB shell, with a market cap of $162 M. It has no activities other than trying to acquire International Fidelity Holding (IFHC) from UAI. It has SEC filings. Its officers are David Morris and C. Thomas Mulligan. Its shareholders equity is $15.7 M, giving it a price/book of 10. That's for a company with no operations. Recall that the acquisition of IFHC is responsible for 80% of the shares outstanding of UAI, meaning 80% of UAI's market cap of $700 M. That's $560 M. So this is a big deal. How could USIS possibly acquire something with a market value of $560 M, when it has a market cap of only $162 M, and a net worth of only $15.7 M? The only way they can do it is by paying a whole lot less than $560 M. This is just one step of a process that looks to me like a monumental ripoff of shareholders. * UAI buys IFHC in exchange for stock * UAI market cap soars * UAI sells IFHC for a small fraction of the market value What is UAI left with? It looks to me like this is a way for somebody to pump money out of shareholders.