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For
More Information..... |
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| For
more information regarding Universal Delivery Solutions or Zupintra Corporation
as an investment opportunity, be sure to review the entire research report
in a printable PDF format by clicking the appropriate link below:
UDS
Group Inc.
Zupintra
Corporation Inc.
Or,
to discuss UDS or Zupintra, 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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Mapping
Out UDS Group's Path |
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| Universal
Delivery Solutions - otherwise known as UDS Group Inc. (UDSG.PK)
- announced on Thursday that their delivery mapping procedure was to going
to be handled in house, rather than outsourced. Aside from being an upgrade
in terms of functionality, the decision will also save the company about
$800 for each store represented by UDS Group's pick-up or delivery service.
You
may recall how UDS is a facilitator of delivery solutions for restaurants
wanting to increase sales by offering delivery, but may not have the tools
or infrastructure to make it happen efficiently. UDS offers a solution
by acting as a call center to accept those orders, but also creates a line-by-line
'optimal' delivery route for the restaurant's driver. The new maps won't
change anything from the store's perspective, but the ability to create
maps just got a whole lot easier for UDS....and a whole lot cheaper.
Before,
the map was essentially purchased at an average price of $800 per restaurant,
and generally took three weeks to receive the data. Now the company can
instantaneously create the same map themselves, eliminating any wait time
for a restaurateur that was ready to start making deliveries as soon as
possible. Thus, it serves as one more selling point for the service - a
store can start delivering practically immediately.
Ultimately,
we believe this will allow the company a substantial cost savings when
operating at full capacity. UDS is gearing up to be able to handle thousands
of stores. Versus $800 a pop, the new mapping system won't be a fiscal
annoyance. Moreover, the new system is much more effective at creating
driver maps - a small detail on the surface, but a preemptive avoidance
of a headache later.
For
more, click
here. |
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Zupintra
Better Positioned For Revenue |
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 It's
been a while in the coming, but now that it's here, we believe Zupintra
Corporation (OTCBB: ZUPC)
should be able to start making tangible progress towards revenues...and
profits.
Without rehashing
the entire background on the company, Zupintra's intent and business model
is to serve as a telecom 'termination' point for most of Central and South
America. In fact, their infrastructure and licensing is set up (or is being
established) at this time. The fruits of their labor will be ripe when
long-distance carriers start to route their customer's calls through Zupintra's
network rather than someone else's.
On Thursday
we learned that Zupintra has already been terminating calls - successfully
- for about two weeks. It was a testing period to make sure the technology
worked as needed before rolling the service out on a major scale. We don't
know how many clients inter-connected with the Zupintra network, nor do
we know who any of them are. That's Zupintra exercising their right of
proprietary secrecy, which is fine.
However, a more
important (and perhaps more obscure) milestone may have been passed. As
part of the normal course of doing telecom business, a smaller termination
network like Zupintra also needs to be able to extend credit to top tier
providers. The big players don't 'pay as you go', but rather expect to
be billed on a monthly basis. That's not unusual, but to be able to bill/invoice
massive dollar amounts (relatively), you need the financial backing to
do so. That backing is two-pronged. The first prong is accounts receivable
insurance, which Zupintra had. The second prong was a credit line, which
Zupintra did not have at the time of our last look, but has since acquired
- apparently in just the last couple of weeks.
With both of
the financial pieces of the puzzle now laid side-by-side with the technology
piece of the puzzle, the company is in a good position to start delivering
results - something that was largely stifled before. It's our understanding
Zupintra has a $5 million letter of credit from Londesborough Finance -
more than enough to get them started in a way big enough for the company
to reach their short-term goal of $2.5 million in revenues per month.
Though the line
of credit has not been trumpeted, we believe it was a bigger deal than
the company has stated. There was no official announcement the Londesborough
deal had been approved, and only one mention of it in Thursday's press
release. Nonetheless, it has largely unshackled the company. Our research
staff remains eager to see what kind of numbers can now be generated. We
suspect they should be respectable within a few weeks.
 And
as far as the stock is concerned, good fundamental news couldn't come soon
enough. ZUPC shares reached a low of 10 cents on Wednesday, after peaking
at 29 cents in April. The 20 day line has been resistance - at least until
Thursday's pop - while volume has been thin. The news, however, may well
be the needed catalyst to get the stock going again. An irony really.....the
company is closer than ever to reaching its potential, but interest in
the stock appears to be at an all-time low. Perhaps it's an entry opportunity,
in the sense that things are often 'darkest before dawn'.
For more on
the news, click
here.
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Isilon's
Earnings - Pares Loss, Stock Plunges |
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 Isilon
Systems (NASDAQ: ISLN)
released their second quarter results on Thursday. The company lost 6 cents
per share on a fully diluted basis, or 4 cents per share on a non-diluted
basis. That was considerably better than the loss of 89 cents per share
during Q2 of last year. The company reported sales of $25.1 million, which
was 87% better than the same quarter a year ago, and 16% better than Q1's
total from this year.
The loss came
as no surprise. The company as well as most analysts agreed the revenue
stream was not quite strong enough yet to push the numbers into the black.
Isilon's story was and is one of very consistent - and very big - incremental
improvements in the top and bottom line. Those results seems to now be
just inches away from a swing to profit. And, their second quarter was
no exception to that trend.
Yet, the stock
plunged as much as 30% in after hours trading, shortly after the company
released results. Why such a big dip on relatively good news (with a pinch
of hope)? In a word, expectations. Experts were expecting a loss of 5 cents
per share, and about $26.3 million in sales. The company also cut it's
full-year revenue guidance by about $20 million.
The question
at this point is one of whether the glass is half empty, or half full.
An astute value investor may look at the results compared to the stock's
price, and recognize Isilon's progress is getting better and better despite
the precise numbers analysts expect. Perhaps the analysts were errant in
their expectations, or perhaps the company was a little too aggressive
in their outlook. However, none of that changes the real results the company
has achieved, and is likely to achieve going forward.
The counter-argument
is simply the possibility that Isilon will never live up to lofty expectations,
even if they produce very good numbers. If a stock can't get out from under
the thumb of over-zealous analysts, perpetual disappointment may take a
toll on the share price - whether it's deserved or not.
In other words,
did the big after hours plunge price all the potential negatives in, leaving
the stock to now work off of a new benchmark?
Based on the
sustained, incremental improvements, we tend remain in favor of the stock,
and view the dip as an entry or re-entry opportunity. However, we also
recognize - cognizant of the market's recent action as well - a recovery
may not be immediate or swift. For traders that may be a challenge, but
for investors it's just the way things are.
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Updated: 9:18 am PST (17:18 GMT), January 5, 2009
