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

To: jmt who wrote (602)	7/1/1998 7:09:00 PM
From: Clase Azul	Respond to of 2493

Sounds like the same thing as when FAMH was going to aquire Atrix. They, too claimed huge revenues but made no statement of the debt or the earnings of the company, which is what really matters.

To: jmt who wrote (602)	7/1/1998 9:06:00 PM
From: WRAP_IR	Read Replies (1) \| Respond to of 2493

Actually jmt, a worthless company could buy an entity of some value. However, since they have reversed the stock out, IF USXP issued more than 50% of its fully diluted stock for the merger, it would have to be booked as a reverse merger with USXP becoming the acquiree and SKYNET the acquiror. I can't remember if it is a GAAP or an SEC ruling that makes a compnay account for that -- but I would have to assume that unless the company has a ton of the Israel Fund cash, they will have to issue stock to do the deal. This does not mean that control of the compnay has to change, but it would be a reverse merger if the above scenario was in fact happening. This type of practice often occurs. As for the Israel Fund, which i was questioned earlier about. They have a ton of capital and are in fact based out of Israel, with a few other "reps" that were based out of Brooklyn and Utah. Now this is scktech and should not be taken as fact until it can be proven, but.... One of the Israel Fund's associates was indicted (and charges later dropped) in the FBI sting operation in '96 involving the payment to brokers to pump OTC BB stocks. However, that was then and this is now and it will not have any effect on the price, (just mentioned it to set the stage for the type of people that lurk out there). As for the financing -- A Class B share is either held by insiders who will soon be selling to build palatial houses on the golf course (private club of course) or by a Reg S financing that involes a convertible preferred. Now this convertible stock will say something like ....upon conversion of the Class B Convertible Stock, the shareholder will be entiled to convert into Class A common stock at 60% (hypothetical number)of the previous 5 day closing bid price.... The Israel Fund will start, or has started already to short the stock (only after the reverse, which they made the company do or no cash). So they will short now and convert the stock in a year when the shares are free trading. If they sell their shares at $2.00, they will cover with free trading stocks -- but the profit does not end there -- They have already locked in their profit -- but it goes further --- They'll (along with all their friends) will short more stock (their selling created great downward momentum) Sell at $1.50 avg. and cover at $0.15 in a year SWISH! another couple million in profits. That's why the stock slowly errodes over time rather than going straight to zero. Acquistions and momentum buying cannot slow down the tremendous selling that will more than likely come into the stock. It is no wonder industry experts and analysts call these things Toxic Convertibles. All this was said foe one reason -- Tell your attorney, congressman and SEC Ombudsman to stop the insanity