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Microcap & Penny Stocks : Universal Medical Sytems (UMSI) -- Ignore unavailable to you. Want to Upgrade?

To: Sylvain C. who wrote (673)	12/23/1997 3:11:00 AM
From: Sylvain C.	Read Replies (1) \| Respond to of 1672

Part II. Be patient! I have notice that most people on this thread are impatient. I do understand that but also know that it takes some time to develop a limited market. UMSI has some market penetration and will likely be in business for many years to come. I can't find any reason right now to blame management on the day-to-day management of the company (they may still want to take advantage of the low stock price but that's another story since I do not believe it will affect the overall performance of the co.). I also believe that the stock was over valued in 1997. I also know that is undervalued at 0.09 but can't tell exactly what its real value is! However I would have no problem to believe that it will reach $1.50 in 1998. Am I being realistic? I would appreciate any comments, possitive or negative. Thanks/Merci Sylvain C.

To: Sylvain C. who wrote (673)	12/23/1997 10:10:00 AM
From: GeneM	Respond to of 1672

Sylvain: If you take a tax loss you must wait 31 days to repurchase; if you don't claim a loss, you can repurchase in 2 min.. First of all, you have to realize that entities like Select are NOT looking to repurchase at a lower price. They are not shorting the stk. in the true sense of the word; they are selling shares that they do in fact own, but cannot legally sell at this time. Similar to Reg. S shs., which aren't supposed to be sold in the U.S. for a 2 year period after purchase. It's called "shorting against the block". Ex: if Select was given 500k shs. of UMSI for their services, that stk. carries a legend (or letter), and cannot be sold for a certain period of time. It is certain that the stk. was given at a discounted price (probably somewhere around .10). Now, Select has (or has not) performed some service and has received no money (or very little, whatever the case may be) so far; so, what they do, is short the stk. to raise cash (sort of like a covered short). They are not looking to repurchase to cover their short, they already own it. Should there be a buying frenzy, and the price rise, they do better; should the price drop, so be it, they still get their cash. As long as no one has requested possession of their shs. (which is usually the case) they can continue indefinitely without fear of getting caught. GeneM