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Microcap & Penny Stocks : UNIVERSAL EXPRESS INC - USXP -- Ignore unavailable to you. Want to Upgrade?

To: jmt who wrote (487)	7/1/1998 3:47:00 AM
From: TraderGreg	Read Replies (1) \| Respond to of 2493

jmt--I posted the following: "The reverse, on the otherhand, can be voted on by the Board and unless the shareholders demand a proxy vote, it becomes a fait accompli. After the reverse, a company can start oozing shares out". You asked is the above my experience. It is... and it's yours too!! Did you receive a proxy to vote for this reverse?? Did the shareholders of BNEZ, CVIA,TSNL receive proxies to vote on their reverse? Lakers said RA is smart. Damn straight he's smart. The reverse gets rammed down shareholders' throats and unless they band together, demand a proxy vote, perhaps go to court, there is very little that can be done to stop it. But remember, the key here is this: After the reverse, the authorized shares stayed the same. Were it not for that, the reverse would have just been an "adjustment", a "scaling, a "math recalculation". We can debate whether a stock with 100,000,000 shares at .01 will grow faster than one with 1,000,000 shares at $1.(Some people think the $1 stock will grow better because of the increased institutional involvement, some think the .01 stock because it is so cheap.) Either way, that isn't the point. The point is that on 6/29 PKGP was a .04 stock with close to(possibly more than!?!) the authorized number of shares already outstanding. On 6/30, it became a $2.80 stock with 1 to 1.5 mm shares outstanding(estimates vary) and the ability to issue up to 50 million total shares!!! A reverse split of this magnitude creates a sort of new credit line for companies. The trick is how to ooze those shares to get the most bucks out of it. If they ooze to quickly, they sell a lot of shares, but the price falls too sharply. TG