Wednesday, February 06, 2008

02/06/08

Sold 5,000 UHCR @ .105

I think long term it will be a good company, but a few things bothered me. Even though I no longer qualify for the dividend tomorrow, I believe that when the new acquisition is discussed, current shareholders will find out that even though they own the float now, the company has to increase the A/S from 10 million to 100 million to finace the investment in SecureNetView. UHCR had reduced the A/S from over 400 million to 10 million in November to show shareholders there would be no dilution and the price of the stock could go to $1.00 + . All of us think that was a great move! But now, to change the A/S and give SecureNetView about 75 million in 1 year restricted stock changed the dynamics in my opinion. I found this out by calling Clayton, the CEO, and he told me. Sometimes they will talk. But after trying to figure out how they were going to effect a 5 shares of UHCR for 1 share of SecureNetView, an increase in the A/S seemed the only way and he confirmed that. Dilution will be coming, though it's a good business plan: I just don't want to wait that long, and we'll see where it opens tomorrow on ex-dividend date. Might be able to buy it cheap and flip it! We'll see how we play it next, if we do.

DISCLAIMER: All stocks mentioned are based on hypothetical basis. All the information discussed is for entertainment purposes. In the event someone wanted to play this game, then I implore YOU to do your own due diligence. Mine may come from a crystal ball, fortune cookie, or even a dream. In other words, it's your money and you decide how you want to spend it.

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