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UDS
Group, Subway Delivering to Manhattan Doors |
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Universal
Delivery Solutions posted some outstanding news to close out last week
- they're now delivering for Manhattan's 'Subway' brand sandwich shops.
The last we
heard about the partnership was October of last year. If you missed the
news, just
click here for our entire coverage. Or, if you want the summary, try
this...
 All
the Manhattan Subways can deliver subs, but handling the ordering store-by-store
could be a logistical nightmare. To centralize and streamline the process,
UDS
Group (UDSG.PK)
has
established one nationwide toll-free number to call in a delivery order...1-800-SUBTOGO.
Last October the details were being worked out; now the process has gone
'live', with real customers.
UDS handles
everything from speaking with the customer to notifying a certain store
location they have a phone-in order. The only thing a particular store
has to do is make the sandwiches and tell the driver where to take them.
For doing this, Universal Delivery Solutions takes a percentage of the
dollar amount of the order.
The 'bigger
picture' plan is to reproduce the same one-phone-number system for other
restaurants. Eventually, they could do the same for grocery stores, pharmacies,
dry-cleaners...you name it.
Though the deal
with the Manhattan Subways was deemed a pilot program, it's one high-profile
trial program. It involves dozens of restaurants. Plus, it's New York.
If they can make it there, (and sorry for the cheesy cliche) they
can make it anywhere.
If this Manhattan
Subway arrangement works as well as we think it can, we anticipate the
degree of interest in UDS Group's offer to grow rapidly. To that end, just
know there are nearly 1 million restaurants in North America. That's a
lot of potential partners, and they already have an inside track with Subway.
In the meantime,
we have a quick update on their efforts to get their stock from the pink
sheets to the bulletin board....
The required
audit is winding down - maybe a month or so to go. When finalized,
the audited numbers and all the other SEC paperwork can be immediately
delivered. Once in the SEC's hands, the process can actually go pretty
quickly if all the paperwork looks good.
The company
that Universal Delivery Solutions has picked to handle the filing and audit
- Sherb and Co. LLP - has a pretty solid track record with getting
stocks trading on the bulletin board.
All told, barring
any unforeseen hurdles popping up, we can reasonably expect UDSG to
start trading as a bulletin board stock within the first half of 2008.
We'll let you know if things change between now and then.
 The
stock has performed about as well as the overall market has lately -
and about as well as you'd expect when investors feel terrified about
the news. That said, UDSG seems to be defining support once again around
2.8 cents. Prior to this past week, volume was quite thin on both sides
of the market. Then, we saw a mini-burst of volume over the past five days.
That volume
spike may be nothing, but it could also be a pivot; many stocks
kick-off a reversal with a heavy dose of trading but minimal price change.
Only time will really tell if that's what's going on here.
As far as our
take is concerned, we've frequently observed the best time to invest in
good companies is when the rest of the market is afraid to own much of
anything. That's why it may be a good idea to review our original description
of Universal Delivery Solutions...so you can judge the merits of
the business plan for yourself. Just
click here.
Though most
economic data isn't always helpful to investors, we still feel much
of it does hold meaning. The key to successful use of said data
is proper interpretation of their trends - something most
TV and print analysts just don't do.
In fact, if
you recall our September
10, 2007 edition 'Economic Reality 101', you'll also recall how 'obvious'
and 'conventional' assumptions can also be plain wrong.
Given how the
economic landscape has changed in just the last few weeks, now's
a good time to update you on the four 'biggies' of the economic world:
unemployment,
consumer confidence, capacity utilization, and inflation. The long
term history (the 'trend') of all four is on the nearby chart, along with
a chart of the S&P 500.
 Unemployment:
Remember,
for investors, the absolute level of unemployment doesn't mean much. The
direction of the unemployment trend has typically run counter to the direction
of the market's trend. With unemployment now clearly in an uptrend (last
week's rise to 5.1% is a multi-year high), stocks are feeling pressured.
Consumer
confidence: Per our September discussion, there are two possible interpretations
here. The confidence trend itself usually runs parallel to the stock market.
BUT, when confidence reaches an extreme reading, it can actually signal
a top or bottom for stocks. That's why last month's multi-year low of 64.5
may actually be a good thing, signaling that investors have capitulated.
On the other
hand, readings in the 50's are usually associated with major bottoms. We
may need just a little more worry before a final bottom is made.
Capacity
utilization: Though the stock market has survived worse, there is a
clear downtrend in capacity utilization. Like rising unemployment, this
has historically worked against stocks.
Inflation:
Note that high or rising inflation is not inherently bearish for stocks,
despite what some of the media would have you believe. Coupled with other
burdens though, it can be a challenge.
Inflation was
reeled in a little last month, though it's still hovering around multi-year
highs. However, if it stabilizes here, we actually don't see a major problem
for stocks ...provided you have a decent size portion of basic materials
stocks and other sectors supported by rising prices.
We know we promised
a sector outlook soon, but the economic update was the more pressing of
the two. We'll get the sector and industry forecast out early next week.
Here's the UDS
Group news:
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UDS Group,
Inc. Announces Successful Delivery Launch for SUBWAY(R) Restaurants in
Manhattan, New York City
Friday April 4,
6:00 am ET
BOCA RATON, Fla.--(BUSINESS
WIRE)--UDS Group, Inc. (Pink
Sheets: UDSG), a leader in Delivery Management Solutions, announced
today the successful delivery launch for SUBWAY(r) restaurants, the world's
largest franchise chain, in Manhattan, New York City. Under the agreement,
UDS will manage SUBWAY(r) restaurants delivery launch utilizing its single
nationwide toll free number 888-SUB-TO-GO for participating restaurants
throughout the United States. This alliance is aimed to provide SUBWAY(r)
restaurants an opportunity to get a footprint in a market currently dominated
by Pizza and Asian Cuisine which is a $32 Billion Dollar industry to date.
Richard Schragger,
a multi-unit SUBWAY(r) franchisee in Manhattan, New York City and one of
the first participants of UDS's delivery management solution for SUBWAY(r)
restaurants states, "UDS has given us the systems and tools to help us
manage deliveries like never before. Using their systems, we are now able
to focus on making quality fresh sandwiches, while UDS's trained customer
service team gives each customer the time and attention they deserve when
customizing their sandwich order. Other useful information from their system;
such as order times, out the door times and delivery times are instrumental
in helping us manage the overall customer service experience. We are very
pleased about the awesome benefits of this partnership."
Adam F. Coblin,
Chairman and CEO of UDS Group, Inc. states, "I am extremely proud and honored
to be able to team with SUBWAY(r) and its franchisees who represent one
of the most recognized and prestigious franchise chains in the world. SUBWAY(r)
being able to offer business and residential customers healthy nutritious
meals delivered fresh to their doors is an exciting new opportunity. Furthermore,
offering delivery will be a tremendous benefit to help SUBWAY(r) not only
increase its current revenue base, but also enhance and expand its market
share."
About SUBWAY(r)
Restaurants:
The SUBWAY(r)
restaurant chain is the world's largest submarine sandwich franchise, with
more than 28,500 locations in 86 countries. The SUBWAY(r) chain has surpassed
McDonald's(r) number of locations throughout the USA, Canada, Australia
and New Zealand. Headquartered in Milford, Connecticut, and with regional
offices in Amsterdam, Beirut, Brisbane, Miami, and Singapore, the SUBWAY(r)
restaurant chain was co-founded by Fred DeLuca and Dr. Peter Buck in 1965.
Their partnership marked the beginning of a remarkable journey - one that
makes it possible for thousands of individuals to build and succeed in
their own business.
The SUBWAY(r)
chain has been named the number one global franchise opportunity by Entrepreneur
magazine in its 2008 franchise ranking.
For more information
about the SUBWAY(r) restaurant chain, visit www.subway.com.
SUBWAY(r) is a
registered trademark of Doctor's Associates Inc.
About Universal
Delivery Group, Inc.
Universal Delivery
Solutions, Inc. (UDSG.pk)
www.UniversalDelivery.com
is the first Company to provide a 100%, turnkey delivery platform to the
service industry throughout North America (restaurant, retail, other).
The system is designed on both a customer relation management (CRM) system
and a service integrated technology backbone between customers, call center
and the personal industry provider of choice.
Legal Notice Regarding
Forward-Looking Statements
The statements
in the press release that relate to the company's expectations with regard
to the future impact on the company's results from acquisitions or actions
in development are forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. The statements in this
document may also contain "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Since this information may contain statements that
involve risk and uncertainties and are subject to change at any time, the
company's actual results may differ materially from expected results.
Contact:
UDS Group, Inc.,
Boca Raton
Gordon Otter,
1-800-530-3545
Source: UDS Group,
Inc. |
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Small
Cap Clearly Canadian Still Going |
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| Believe
it or not, there are actually some consistently-rising stocks in the middle
of the mildly bearish environment. Our very own small cap name Clearly
Canadian (OTCBB:
CCBEF) is one of them; it's up 114% year-to-date, and up 64.8% since
we got back on the bandwagon on February 15th.
It
was only a few days ago they unveiled fourth quarter and full-year results.
The overall numbers were higher, but some acquisitions in the middle of
2007 made it an apples-to-oranges comparison. Still, when each of the major
divisions was broken down, all of them saw top line improvements.
The
combined brands did $11.1 million in sales during 2007, which was remarkably
better than the total of $7.5 million from the year before. However, new
CEO Bobby Genovese mentioned he felt the company was capable of doing $30
million per year. For comparison, the current market cap is about $25 million.
That leaves some room for a little more upside, but...
We're
still thinking profits
should be locked in somewhere between $1.48 and $1.70. Or if it's easier,
let's just say 'around $1.60'. The market cap would be near $33 million
then, and the stock would start to hit significant prior ceilings. It's
still not a bad little move for those who got in though ...close to a double. |
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Solar
Panel Maker XsunX Inc. Finds New Facility, Stock Surges |
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| Though
they scored no points in the 'company name that makes any sense' category,
the market seems to love XsunX's (OTCBB:
XNSX) recent news. The company recently signed a lease on a new manufacturing
facility, which apparently will give them some much-needed capacity.
The
company has spent the last three years in focused research with a photovoltaic
material called Amorphous Silicon. During this time they've developed the
technical capabilities to take the technology to market. The products they
ultimately intend to mass produce are amorphous silicon solar modules on
glass panels.
The
new facility will establish the first 25 mega-watts worth of production
capability for their thin-film solar module manufacturing needs, but XsunX
plans to grow their manufacturing capacities to over 100 megawatts by 2010.
The
interesting part about why they chose this location? Aside from providing
strategic access to shipping and transportation corridors, it also offers
sufficient amounts of clean hydro electric power to operate the company's
systems. Talk about green-friendly! Using clean energy to make clean energy....
Anyway,
the stock looks great right now - in the short run. Take
a long-term look though...not quite as compelling. XNSX has been range-bound
for over a year, roughly between 28 cents and 75 cents. Most of that time
was spent in the development phase though, so maybe the facility will move
them to profitability. And, maybe that's why the stock is finally moving. |
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Updated: 3:10 pm PST (23:10 GMT), November 20, 2008
