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

To: Hootermonger who wrote (661)	7/2/1998 7:32:00 AM
From: TraderGreg	Read Replies (1) \| Respond to of 2493

Hooter--Renaming the symbol and CUSIP change(an automatic call of 100% of the certs) is all a company needs to do to force shorters to cover. That is assuming they really want to bust the shorts of course. As GaBard says, "When a company ASKS its shareholders to call their certs, I sell". I am a little less suspicious but still very wary when I hear that.. Nevertheless, no one who has played this game ever believes a reverse is done to bust shorts. You believe that if word of the reverse had leaked, the shorters would have been scrambling to cover? Hardly. They would, and did, short more. I have never seen a big reverse, on a company that didn't already have fundamental criteria for NASDAQ listing, where the price didn't fall immediately on the announcement and continue after the reverse. And it didn't happen here either. Why? Because PKGP, at 37mm shares and .06 price didn't have the fundamentals to begin with. (Remember, pre-split, RA and crew were telling us only 37mm true long shares existed) I do hold shares in one company that has a large share count (100mm+) and is trading at .09, with EPS of 3 cents (aP/E that is POSITIVE!! and only at 3!!). Market value of the 80+mm float is $7mm. If that company did a reverse of 1 for 80, it would initially be at $7.20, have $2.40 EPS, and meet all the requirements for NASDAQ. And you know what? Even that company would get hammered on news of the reverse. But the key difference is, after the initial panic, cooler heads would stop, think for a moment, and realize that the reverse was being done to get to the NASDAQ. And hell, it's got a P/E of 3 and so on and so on and buying would kick in real soon. That is the difference between PKGP/USXP's reverse and one done for fundamental reasons (rare that those are). BTW, the reason the good ones are rare is because those companies know that ultimately their value will show thru and they will jump to the NASDAQ with a 1 for 10 or 1 for 5 or even smaller reverse. TG