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UDS
Group To Expand With Salad Creations |
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This
micro cap stock seems to become a little less micro every day. Universal
Delivery Solutions (UDSG.PK)
announced this morning their partnership with Salad Creations would be
expanding along with Salad Creations' planned growth in 2008.
 The
relationship was forged in May of 2007, when Salad Creations asked Universal
Delivery Solutions to handle delivery order processing for one store in
Boca Raton, Florida. The test was expanded to Coral Springs and Weston
in July of last year. Apparently things went well, since UDS Group will
be on board for Salad Creations' expansion into Texas and Maryland in 2008.
This is a pretty
big deal for Universal Delivery for a couple of different reasons.
First,
it validates the viability of such a service. Though the restaurant in
this case - Salad Creations - is now going to be a nationwide name, the
delivery logistics for all of those stores is to be handled with one call
center, using just one national phone number. That's a much more efficient
way of handling phone-in and delivery orders. When other restaurant chains
start to see the service in operation, they too may inquire about getting
UDS Group involved in their own marketing plan.
The second
reason this is a big deal for Universal Delivery Solutions is much more
straight-forward...revenue. Salad Creations currently operates 34 units,
which may well be their biggest single customer. However, Salad Creations
intends to open more than 100 units in 2008. With Universal Delivery Solutions
along for the ride, we suspect UDSG's top and bottom lines are going to
start making some significant progress.
 As
for the stock, owning UDSG wasn't necessarily any easier to own than any
other stock has been since late October. So, while lower, the fact that
it held its ground relative to the market at least deserves acknowledgement.
What we found
to be impressive - and bullish - was the price action over the last
couple of days. The stock had been working on a recovery, but finally made
good on the promise Wednesday with a strong move past some key resistance.
Though it might
be a tad soon to say this is the beginning of better days, it wouldn't
be wrong to start considering the possibility. Remember, Universal Delivery
Solutions is still working on getting their stock listed as a bulletin
board equity. An upgrade like that could really be a boost for shares.
The press release
is below.
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Was
That Really A Bottom? |
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You don't need
us to tell you the last few weeks have been a whirlwind for stocks - and
the last several days in particular. Traders and investors alike
have been trying to find some sort of frame of reference in the search
of the answer to the question 'is this the bottom?'
Though we all
know there's not a guaranteed answer to that question, it doesn't mean
the odds don't favor a certain response. In fact, we've got a fresh perspective
on the question that we've yet to see anybody else consider.
Most investors
tend to define their strategy as either 'fundamental' or 'technical'. Fine,
but our research staff prefers a blend of both, as both have pros and cons.
Though stocks look 'cheap' right now, we're going to focus today entirely
on a couple of key chart patterns. (We'll come back to fundamentals some
other time.)
Ever heard
of Fibonacci lines? If not, don't worry - we can give you a real quick
lesson. Supporters of the Fibonacci theory believe there are numerical
growth and contraction factors that tend to be repeated over and over again....in
science, nature, and even in the market.
When applied
to stock charts, Fibonacci fans see significance in 38.2% and 61.8% retracements
from peaks, and the same size rallies from bottoms (or some multiple of
those percentages). Though not every single bottom or top is exactly a
Fibonacci extension or retracement, enough of them are to give the theory
some attention.
 As
always, a picture is worth a thousand words.
In case you
were wondering, the NASDAQ's October/January pullback has ended up being
the biggest (from high to low) since 2002. The peak of 2861 and the low
of 2202 was a 659 point selloff (-23.0%). Yet, not too many people could
really say why 2202 (so far anyway) has apparently become the bottom.
Well, it may
be a coincidence, but that dip of 659 points also happens to basically
be a 38.2% retracement of the move from 2002's bottom to October's peak.
The horizontal blue lines on the nearby chart are the major Fibonacci lines
for the last few years.
 At
least curious? Wait - it gets better. On the weekly chart, which looks
at the NASDAQ between 2004 and now, we basically see the move all the way
to a low of 2202 is nearly a 61.8% retracement from the August '04 bottom
to October's peak. That particular chart is also nearby, with purple Fibonacci
lines.
A long-term
Fibonacci line at about the same 2200 level as an intermediate-term line,
not to mention that's basically where the market made its turn? If it's
all random, that's one heck of a coincidence. For our money, we'll keep
watching 2200 as a key line in the sand.
Now in all fairness,
there were a few instances where the Fibonacci lines played little to no
role at all. However, the major tops and bottoms seem quite influenced
by the mathematical ebb and flow.
We didn't have
time or room to look at the other major charts and their Fibonacci lines,
but they're pretty much telling the same story. Be sure to check out the
blog or our next newsletter update for those charts. In the meantime, here's
the UDSG news release.
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UDS Group,
Inc. Begins Nationwide Expansion for Salad Creations in Texas and Maryland
Thursday
January 24, 2008
BOCA RATON, Fla.--(BUSINESS
WIRE)--UDS Group, Inc. (Pink
Sheets: UDSG), a leader in Delivery Management Solutions, announced
today it will begin its national expansion of delivery for Salad Creations.
Following the success and robust results generated by UDS in South Florida,
UDS will assist Salad Creations' expansion into Texas and Maryland by utilizing
its single nationwide toll free number 888-4-A-SALAD. Salad Creations,
a national franchise offering a fresh alternative to fast food for today's
healthy lifestyle, was named the number one salad franchise by Entrepreneur
Magazine. Currently, Salad Creations operates 34 locations throughout the
United States, Mexico, Brazil and Trinidad and is scheduled to open more
than 100 locations in 2008.
Adam F. Coblin,
Chairman and CEO of UDS Group, Inc. states, "We are most excited to be
able to partner with one of the premier new franchises in the United States.
Salad Creations' commitment to excellence complements not only our business
model but furthermore creates a synergy between us that will further accelerate
our growth as well. In addition, our tremendous success with Salad Creations
continues to demonstrate our unique ability to help our clients not only
deliver to their customers what they want when they want it, but moreover,
verifies UDS' ability to increase our clients' earnings and growth while
simultaneously expanding their customer base."
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. About Salad Creations Salad
Creations is a national franchise offering a fresh alternative of quality
made-to-order salads for today's healthy lifestyle. Each restaurant features
more than 40 ingredients including fresh vegetables, fruits, cheeses, sliced
meats and over 15 specially prepared salad dressings. Salad Creations also
offers more than 10 featured salads and a variety of daily soup specials,
fresh wraps and a complete line of smoothies. Headquartered in Margate,
FL, Salad Creations has more than 30 locations open with several more under
construction and contracted to open at this time. For additional information
please see the following links.
http://www.saladcreations.net
http://link17.streamhoster.com/?u=wsm01&p=%2F11-5-07+-+NBC+6.wmv&o
daid=6133 (Due to its length, this URL may need to be copied/pasted
into your Internet browser's address field. Remove the extra space if one
exists.)
http://www.globenetix.com/images/customers/128221/storage/saladCre
ations_web.wmv (Due to its length, this URL may need to be copied/pasted
into your Internet browser's address field. Remove the extra space if one
exists.)
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
Mr. Gordon Otter,
1-800-530-3545
Source: UDS Group,
Inc. |
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For
More Information... |
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| For
more information regarding Universal Delivery Solutions Inc. as an investment
opportunity, be sure to review the entire research report in a printable
PDF format by clicking the link below:
Universal
Delivery Solutions Report
Or,
to discuss Universal Delivery Solutions, contact:
The
Micro Cap Press
15233
Ventura Blvd.
Suite
#310
Sherman
Oaks, CA 91403 http://www.microcappress.com
1-800-277-9081 |
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Technical
Communications a Technical Mess...But Curious All The Same |
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| We'd
like to be able to say we found small cap stock Technical Communications
(TCCO)
based on its strong fundamentals, its growing revenue, or its downright
cheap valuation. Unfortunately, none of those would be true. We actually
became interested in TCCO during a routine scan of small cap stocks with
sudden and usual changes in volume. The fact that the small company's numbers
scream 'undervalued' was just a little gravy.
Technical
Communications makes communications equipment. Specifically, they create
technology that allows its customers to safely and securely send faxes,
make phone calls, use radios, use the Internet, etc. The niche is a good
one, and the company seems to be filling it nicely. That's not the impressive
part though.
When's
the last time you heard of a true small-cap/bulletin board company that
was not only profitable, but also putting up key ratios that are competitive
with its large-cap brethren? Some of the results for Technical Communications
still have us scratching our head wondering why nobody else has found this
stock yet. Here are just a few of the financial highlights. Where applicable,
the industry average (communications equipment) is in parenthesis.
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P/E of
11.6 (21.2)
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P/S of
1.8 (1.31)
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Profit
margin of 17.8% (36.9%)
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Operating
margin of 15.6% (0.62%)
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ROE of
22.8%
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Revenue
growth of 107% (13.8%)
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Earnings
growth of 896%
All in
all not a bad fundamental snapshot. The chart, however, is the tricky part.
Like
we said, we found TCCO because of some unusual volume, so we weren't surprised
to see a volatile chart. That's not a bad thing or a good thing, since
volatility can work for you or against you. You just have to be aware of
that reality, since you may need to time your entry (or exit) accordingly.
In
Technical Communication's case, the rally we've seen since late November
looks a little too much like the one we saw in May of last year...it was
great while it lasted, but it didn't last too long. One of the key differences
we may be seeing now is volume - there's a lot more of it. With more buyers
apparently interested, TCCO could have a much better shot at getting something
started.
From
a macro view, we can also see (pretty much for the first time) that TCCO
has been trying to make higher highs and higher lows since 2003...a stark
change from the opposite habit we saw in the prior decade. A move above
$7.25 would not only mean new 52-week highs, but also a break past a key
peak from late 2004.
With
the kind of fundamentals the company boasts though, we think that's a serious
possibility. A market cap of $9 million, with sales of $5 million and growing?
Curious indeed.
Click
here to see a chart. |
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Time
to Sell Wireless Age? It Was Actually Two Weeks Ago, But... |
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| Remember
a small cap company we
mentioned a few weeks ago called Wireless Age (WLSA)?
Back on November 27th when we took our first look at this wireless device
maker, we were impressed by the stock's move from 11 cents to the then-current
price of 19 cents...a 70%+ run. After a little more digging, we found the
stock was hot mostly because this small cap company's CEO was buying a
huge amount of stock, and the organization has just completed a big repurchase
of 5 million warrants.
Little
did we know our small cap stock pick would remain on its tear for a few
more days; it peaked at 40 cents on January 9th...more than a double from
where we found it, and almost a 300% gain from early November's trading
levels.
For
anybody who acted on the idea, is it time to sell? Well, it was time to
sell. Since hitting 40 cents, we've also watched this stock pull back with
all the rest; it's now at 27 cents (which still isn't too shabby). However....
If
you didn't cash in the first time, you may be getting a second chance soon.
While we're confident there was a lot of profit taking in early January,
the stock was just plain overbought - that's what happens when you fly
from 11 cents to 40 cents. It's hard to keep rocketing like that without
a break.
After
reaching a low of 21 cents on Tuesday (the 22nd) though, the 'overbought'
problem may have been solved. In fact, Tuesday's long tail suggests a reversal
is already in motion. More importantly, WLSA isn't bearing the burden of
a massive gain, which means there's a shot of another good upside run.
There's
something else though. While we think there's a short-term 'swing' trade
brewing for WLSA, the weekly chart reminds us there's much more at stake
than a dime or two's worth of potential. This stock was trading almost
at $5.00 in late 2003. Though it was all downhill since then, the last
few months have been remarkably different.
We're
not saying it's a $1.60 stock just yet, but we can tell you the company
was doing much less in 2003 than they are now.
Click
here to see a chart. |
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Zhongpin
Graduates From Bulletin Board to NASDAQ Listing |
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| If
you've been typing in the ticker symbol 'ZHNP' and expecting to find our
favorite small cap food processing company (ok, our only small cap food
processor we've ever followed), then you may have been disappointed. Why?
Since January 9th, this former bulletin board stock has been trading as
a NASDAQ-listed equity. That's right - Zhongpin (HOGS)
graduated.
You
may recall we were impressed by Zhongpin back in May of 2007. As surprising
as it was, this food company - mostly focused on pork products - was growing
pretty well. At the time the stock was trading right around $10.79 per
share. Despite a terribly volatile patch (most of which was bearish), this
stock's current level of $11.70 is still impressive....and it had been
considerably higher.
While
a NASDAQ listing will not guarantee success for investors or the company,
it does make it a heck of a lot easier. That's why it's the ultimate goal
for most bulletin-board-traded companies.
Though
HOGS has moved on to 'bigger and better', we still intend to follow it.
After all, it's still a micro cap...and a pretty good one at that. |
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Updated: 3:10 pm PST (23:10 GMT), November 20, 2008
