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Microcap & Penny Stocks : USTI UNITED SYSTEMS TECH INC -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (998)	3/7/2005 1:12:01 PM
From: Pied Piper	Read Replies (1) \| Respond to of 1001

Whay do you think of them going private, Rande? Good or a bad thing? Piper

To: Rande Is who wrote (998)	3/7/2005 1:33:47 PM
From: Rande Is	Respond to of 1001

What this news essentially means is . . . If you currently have 10,000 or more shares, you will still have all your shares after the "reverse then forward split". But your shares would no longer be traded publicly. This means your shares would likely be converted to stock certificates issued directly by the company. Future buying and selling of shares would have to run through the company. . .not your broker. The company sets the stock price. But keep in mind that company insiders hold a good percentage of the company . . so whatever they do to you, they do to themselves. If you currently have less than 10,000 shares, the company will pay you 0.0675 per share for each share you hold. In other words, if you have 1000 shares, USTI will buy back your shares for $67.50. You would then have zero shares when the company goes private. The split means very little, other than it serves to shake out small shareholders, speculators, etc. before the company goes private. The important factor in this is that this public company is going private. . . which begs the question, "why?" The first thing that comes to mind is that the company wishes to simply save money and begin issuing dividends, based on earnings. The insider owners would thus profit more from the company's success. However, we are talking very small amounts of money here. Another reason may be the instability that speculators bring to the company stock chart. The stock essentially goes nowhere, despite quick sharp moves. This makes it very difficult for the company to get financing for expansion. The second thing that comes to mind is that the company could be looking to reform, then hold an Initial Public Offering. This would serve to bring a far higher market capitalization to the company, which currently has market cap of just 3.65 million, despite it being a profitable company for about 6 years or so. . . with a PE ratio of just 10. For a high tech company that has been around for 25+ years, it is rather shameful that they would only have a market cap of $3.65m. They take in that much each year in revenues with a profit margin of 11%. If there are any other stocks out there with these types of profit numbers and a history of more than 10 years in the same business, please let me know. The heads of such a high tech company should certainly be multi-millionaires by now. . .yet, looking at their pay and how long they deferred dividends, etc. I doubt they have very much. Perhaps they are looking at ways of assuring a comfortable retirement. The USTI balance sheet is impeccable and the story is a good one with many hundreds of satisfied customers. It is a good product for taking overseas as well. . . but such a move requires some serious capitalization. So a new IPO would be interesting . . . perhaps a new name . . .etc. I would personally love to see this happen, though it is purely a speculative thought by myself and backed by absolutely nothing. To me, this is what they "should" do to enjoy a fat market capitalization. There are hundreds, if not thousands of publically traded high-tech firms which do not make any money, that enjoy a far higher market cap. To me, it makes sense that they do something. . . anything to get out of this logjam. I have NO information about this company other than what they publish in their press release. These thoughts are purely speculative. I have held "ultra long" shares of USTI since about 1998 and plan on rounding out shares to an amount divisible by 10,000. Best wishes, Rande Is