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Universal
Delivery Solutions double-dipped today - one press release, but
two
announcements. Both showed nice progress though, which we'll discuss below
as always.
Also, hopefully
you've been following our industry picks in the blog...a follow-up to our
sector picks from last week's newsletter. Though many stocks are up respectably
since then, our picks have fared better than average (which was the
whole point).
If you haven't
been keeping tabs of our industry-based ideas, we'll give you a little
taste today to show you what you're missing. But first, UDS Group's big
announcement(s)...
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UDS
Group Opens up the West Coast, on its Way to the Bulletin Board |
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Looks as if
things went well enough with SUBWAY (r) deliveries in Manhattan that the
company decided to let UDS Group (UDSG.PK)
start
handling sandwich deliveries on the other U.S. coast. Per today's
news release (below), UDS Group and SUBWAY have decided to launch delivery
services in California. The California market is huge to say the
least, and an important seed to plant for the company's future growth.
 At
the same time, Universal Delivery Solutions (aka UDS Group) has confirmed
they're still taking steps to be listed on the OTC Bulletin Board exchange.
There are no specifics yet, but the company anticipates filing with the
SEC sometime this summer.
Just to catch-up
any recently-added readers, Universal Delivery Solutions manages turn-key
delivery services for restaurants. They don't do the deliveries
themselves - they handle the logistics like call-ins, order routing,
mapping, and anything else to help a restaurant offer the service.
They partnered
with several SUBWAY restaurants in Manhattan a few months ago, and the
operation has been flowing smoothly. Now that the joint effort has found
a groove, it's ready to be replicated in other major markets. Needless
to say, California is an important one.
 The
key to it all is one phone number....1-888-SUB-TO-GO, in
this case. No matter where a consumer is in Manhattan (and soon in certain
Cali locales), dialing that phone number is all they'll have to do
to get a sub sandwich delivered to their door. UDS Group takes the order
and figures out the rest. Of course, they collect a fee for each delivery
order they process.
Manhattan is
up and running, and at least parts of California are on the way. The company
also mentioned another major market was in the works too...and
those are just SUBWAY restaurants. Any restaurant could
partner with UDS to do the same. And, if the model continues to work well,
we suspect those other restaurateurs will start to make serious inquiries
fairly soon.
To fan the flames,
Universal Delivery Solutions is getting closer to winning a bulletin board
listing and getting off the pink sheets. The upgrade could open up a whole
new world of interested investors, which means the stock could start to
trade better.
Why?
Though the bulletin board changes nothing about a company's performance,
some institutions (and individual investors for that matter) only
buy listed or OTC bulletin board stocks. We don't mind pink sheet equities,
as that's where so many young value stocks start out. Since other
people do care though, the move to the bigger, better board could
be good news for the stock.
The press release
is below..
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More
Industry-Based Forecasts |
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Maybe you saw
our picks
last week from the broadcasting/entertainment arena as well asthe
consumer electronics group. We'll put our third installment
in today's newsletter, just to make sure everybody catches a glimpse of
our thought process.
 The
other possibly-undervalued group we found last week were the specialty-finance
stocks. You might recall the broad financial sector was a rebound candidate
from our sector study. Well, the obscure specialty-finance names
may be poised to lead such a rebound.
Take a look
at the Dow
Jones Specialty Finance Index (DJUSSP) chart. We see nothing but
pain since May of last year, but are the last few weeks an omen of better
days ahead? Though the market's overall tide has helped, the industry
had to do some of its own work too.
Based on the
leadership displayed so far, we dug up couple of company names from the
industry....one based on fundamentals, and one based on technicals
(the chart). As before, there are no guarantees, and your own due diligence
should be applied.
We saw strong
fundamentals from small cap
Medallion Financial Corp. (NASDAQ: TAXI). Revenues are up by nearly
30% for the year, while earnings have grown more than 17%. The P/E of 11
is solid, while the P/S of 3.40 might be a little bulged. Overall though,
you could probably do worse.
Of course, the
question is not where they've been, but where are they going. Can this
company that specializes in financing the purchase of taxi cab medallions
(not a joke) sustain its growth rate? As crazy as the niche may be,
it may well be crazy enough to work.
 From
a technical/chart standpoint, you might want to look at Moody's
Corporation (NYSE: MCO). The stock took a beating after the third
peak of a triple top in May of last year. A few weeks ago though, somebody
started buying the stock en masse.
Frankly, MCO
shares probably deserved to get beat up - the company posted some uninspiring
results last year. And who knows? Maybe they don't deserve to appreciate
again as they are now. The chart is what it is though....and it's on
the rise.
Most traders
would rightfully wait for a pullback following a runup like we've seen
for a risky stock like this. If MCO can recover well and restart the uptrend
though, a lot of its 2007 loss could be recouped.
To reiterate
a point we made in the blog last week, these stocks and the selection
methodology are mostly designed to get your strategy gears spinning. Feel
free to use them at your own discretion, but you may find some even better
ones on your own.
The UDS Group
news is below.
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UDS
Group, Inc. Announces Major Distribution Expansion and Progress on Its
Reporting Status
BOCA RATON,
FL--(MARKET WIRE)--May 19, 2008 -- UDS Group, Inc. (OTC:UDSG.PK),
a leader in Delivery Management Solutions, announced today that substantial
progress has been made on becoming fully reporting and moving from the
Pink Sheets to the Over the Counter Bulletin Board Exchange. According
to Adam F. Coblin, Chairman and CEO of UDS Group, Inc., "Our auditors have
completed 2005, 2006, and will shortly have our 2007 financials completed.
Once they complete 2007 we will start the process to move up to the OTCBB
sometime this summer."
In addition
to the progress on becoming fully reporting Coblin added, "We are also
pleased to announce that SUBWAY(r) and UDS Group, Inc. have agreed to open
California for delivery services through 888-SUB-TO-GO. This will give
UDS Group, Inc. a major west coast state in its efforts to bring SUBWAY(r)
to all customers via delivery. Also, we will be announcing the addition
of another major east coast market shortly."
Under the agreement,
UDS will manage SUBWAY(r) restaurants' delivery test, 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.
About SUBWAY(r)
Restaurants:
The SUBWAY(r)
restaurant chain is the world's largest submarine sandwich franchise, with
more than 29,000 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. (OTC: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.
Ryan F. Coblin
(561) 674-9512
Source: UDS
Group, Inc. |
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Updated: 3:10 pm PST (23:10 GMT), November 20, 2008
