UVSE.PK

[AussieTrader]

Profile:

Universal Energy Corp., an independent energy company, engages in the acquisition and development of crude oil and natural gas leases in the United States and Canada. As of December 31, 2007, it had working interest in approximately 7,095 acres of land in Louisiana and Texas, as well as in Alberta, Canada. The company, formerly Universal Tanning Ventures, Inc., was founded in 2002 and is based in Lake Mary, Florida.

Discussion:

Something big is going on with this company, I haven't quite concluded if this is a huge opportunity in the making or a huge con in the making - But that is the nature of extreme speculation.

UVSE stock price has been hammered from $2.40 highs to the current $0.02 lows zone.

They have been eating money in that period of time and have had no revenues to speak of, however in the past month or so they have provide revenue guidance for Q2 and Q3. Not big numbers in $ terms, but big in % growth terms (well growing from nothing it will be exponential) Dyron Watford, CFO of Universal Energy Corp. stated, "Based upon the current production of our existing wells, we are pleased to project an excellent series of quarters just ahead in Fiscal 2008. Our revenues are estimated to be within the range of $0.25 million to $0.3 million for the 2nd quarter 2008 and our range for 3rd quarter 2008 is $0.8 million to $0.9 million. This guidance for the second and third quarter 2008 represents an increase of approximately 217% and 882% as compared to first quarter 2008." Watford concluded, "We are starting to see the growth that management expects."

On June 10th the stock took a huge downturn as a result of a debenture and warrant financing filing details of which here http://biz.yahoo.com/e/080610/uvse.ob8-k.html

In that release the investors also got warrants at $0.25c exercise price!!

Since that date there has been nothing but positive releases about well updates and how wonderful the news is for UVSE and its shareholders.

In the past 7 trading sessions or so trading volume in the stock has catapulted upwards yesterday being the highest with 193M shares changing hands!!!

So what's going on and who's doing all the buying and what is their share float. Well the outstanding is 29.9M and the tradeable float 19.26M according to Yahoo. This values UVSE at $594K. They forecast Q2 and Q3  combined revenues at $1M (low side estimate).

Looks to me like speculators jumping in here is running the price up to its current levels and if the revenue growth continues as UVSE are predicting then perhaps they should be trading more like $0.25c and not $0.02c, that said something behind the scenes (that I am not aware of) has smashed the price down to where it is now.

Conclusion

Might be worth a speculative position here using the extreme volume and the shifting fundamentals (i.e. revenue being generated) to potentially ride a very volatile speculative train.

[AussieTrader]

Analysis of debentures and warrants:

Looking at the SEC filings I have calculated that there are somewhere in the region of 32M shares that can be issued to debenture and warrant holders. Those instruments were initially priced around $0.80c, but were ammended to $0.25c (announced on June 10th) as a result of a clause in the holders contracts. Further I note there are clauses relating to anti-dilution agreements with significant current shareholders which I assume means management will issue shares to themselves to offset the value of any debentures or warrants that get turned into shares in the future. Management hold approx 16M shares out of the currently issued 29M, so assume they would issue themselves at least 16M again for anti dilution. So that makes 64M new shares potentially that could be issued.

There are 250M authorised shares which these new issuances can be called from without any further reference to shareholder approval.

Also with the share price now at $0.02c you can guarantee the debentures and warrants will get re-priced and new quantities issued, when that gets announced it will likley negatively effect the stock price which is exactly what occured on JUne 10th and 15th April of this year.

There are also options for key management which based on the monthly vesting equates to 4.2M shares per year (priced badly for them at $0.78c iI am sure they will get adjusted in some form to reflect lower stock price).

So in summary whilst initially this looked like a great speculative opportunity I think the market is pricing in huge dilution in the shape of the items discussed above. All this potential dilution will make share price progress very difficult based on the current revenue gudance and financing requirements to maintain the business.

Be careful out there!!

[penneez2dollaz]

Definitely a dog w/fleas, but look at the volume EBOF had in early May before it made a nice run. This looks like a similar situation:


http://stockcharts.com/h-sc/ui?s=EBOF&p=D&b=5&g=0&id=p02114896492

[la-onda]

Universal Energy announces completion of Caviar pipeline
Friday , July 04, 2008 07:49ET

Jul 04, 2008 (Datamonitor via COMTEX) -- Universal Energy, involved in oil and gas exploration and production, has announced that the Caviar pipeline has been completed.

Billy Raley, CEO of Universal Energy, said: "In no means do I imply that production from Caviar production will change the energy markets, but if each US exploration and production company were focused in on drilling domestic prospects as we are, it would create a damn good start."

[la-onda]

nice day 

[AussieTrader]

UVSE has momentum and volume, and behind the scenes some complex debentures / warrants which basically = dilution.

How can there be such huge volume traded with only 29.9M shares out. Lets imagine that of the 250M authorised shares that ALL of them have now been converted by the finance holders so that we have 250M shares outstanding. This could be true and not yet reflected or reported in any SEC filings or company release.

That would help explain the huge volumes being traded this past few sessions, 135M on Monday alone. If that is the case then a quick bit of math 250M*$0.033=$8.25M being the current valuation or UVSE.

Q2 and Q3 revenues are predicted to be in the region of $1M, project that forward with growth over 12 months lets say $4M revenues over 12 months, so right now that means they are being valued at 2 times 12 months revenues.

So what would be a sort of fair value? Lets assume 10 times (assuming $4M revenues), that would equate to approx $0.16 share price ($40M / 250M shares).

All that said valuations in penny land tend to go out the window when momentum / speculation / volume start to coincide.

Disclaimer - I have a small portion of shares from $0.025.

[kidneydr]

Apparently, according to many posters in investorshub

O/S UPDATE 249,999,866 7/3/2008 -PerT/A

AS = 250,000,000

COmpany says NO intention to Raise the AS - Also remember thisis a OTCBB so they would have to file if they plan to.

i am also in with a small position.

GLTA

[AussieTrader]

I contacted the company directly regarding issued shares and got the answer as follows:

We have issued 250 million shares as of Thursday. As a growing company, we plan to get more shares authorized to support that growth.

Billy Raley
Chief Executive Officer
Universal Energy Corp.
30 Skyline Drive
Lake Mary, Fl. 32746
T - 800.975.2076
C - 407.562.8162
F - 800.805.4561

[la-onda]

Universal Energy Corp. Announces Strategic Initiative to Enhance Stockholder Value
Tuesday , July 08, 2008 09:25ET

HOUSTON, July 8 /PRNewswire-FirstCall/ -- Universal Energy Corp. (OTC Bulletin Board: UVSE), an emerging U.S. oil and gas exploration and production company, today announced the first of a series of strategic initiatives that are being implemented over the next several weeks by management to immediately enhance stockholder value.

"The elimination of corporate debt by year end is our first strategic initiative as it is imperative to increased profitability for our stockholders in the months and years to come" commented Dyron Watford, Chairman and Chief Financial Officer of Universal Energy Corp. Subsequent to the completion of its most recent financing on June 9, 2008, the company has reduced approximately $3,000,000 of debt from its balance sheet. Watford continued, "We estimate that since the end of our last quarter (March 31), our total liabilities have decreased approximately $6,200,000. This reduction in debt service will result in increased profits and greater long term growth prospects from the deployment of this capital."

During the debt reduction over the past few weeks, the company issued the remaining shares of common stock authorized by the company's articles of incorporation. Universal Energy Corp. plans to help support its future growth by increasing the number of authorized shares and with cash generated from current operations. The Company will hold its annual meeting during the middle of next month to vote to amend the articles of incorporation. The company plans to file a preliminary proxy statement by the end of this week. As of the date of this announcement, there are 250,000,000 shares issued and outstanding in Universal Energy Corp.

Universal Energy Corp. is a publicly traded (OTC Bulletin Board: UVSE) energy company engaged in the acquisition and development of crude oil and natural gas leases in the United States. We pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise. Our prospect areas consist of lands in Louisiana and Texas. Visit http://www.universalenergycorp.info for more details.

Forward Looking Statements -- The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

[AussieTrader]

Closed out my UVSE today.

Continued dilution will be the problem moving forwards here.

[la-onda]

very bullish chart imho

Universal Energy Corp. Announces 123% and 244% Increases in Gas and Oil Production Quantities in the 2nd Quarter 2008
Thursday , August 14, 2008 10:25ET

HOUSTON, Aug. 14 /PRNewswire-FirstCall/ - Universal Energy Corp. (OTC Bulletin Board: UVSE), an emerging U.S. oil and gas exploration and production company, announced today that gas and oil production quantities had more than doubled during the 2nd quarter 2008 increasing by 123 percent and 244 percent, respectively over amounts produced in the first quarter of 2008.

"What a difference a quarter makes," commented Billy Raley, Chief Executive Officer of Universal Energy Corp. Raley continued, "The increase in production coupled with the extraordinarily high prices was more than we anticipated. During the second quarter of 2008, Universal Energy Corp.'s share of production was approximately 23.58 million cubic feet of gas and 262 barrels of oil. With production having started in July 2008 for Caviar #1 and Caviar #4, production for fiscal 2008 is shaping up nicely."

The company will release its quarterly report on Form 10-Q on August 19, 2008. The earnings conference call will be August 20, 2008 at 9:00 a.m. Stockholders, brokers, analysts and all interested parties are invited to participate in the Universal Energy Corp. conference call. Callers in the United States and Canada can dial (800) 567-5900 (alternate dial-in number is (702) 835-5025. The conference i.d. for all callers is 801094.

Universal Energy Corp. is a publicly traded (OTCBB: UVSE - News) energy company engaged in the acquisition and development of crude oil and natural gas leases in the United States. We pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise. Our prospect areas consist of lands in Louisiana and Texas. Visit www.universalenergycorp.info for more details.

[setravis]

Changed Ticker Symbol
UVSE.OB is no longer valid. It has changed to UVSE.PK