Sometimes, commentary and opinions on company news is fine. Other times, the best way to convey a message is just to let the company speak for itself. Monday’s letter to UDS Group’s (UDSG.PK) shareholders is probably best presented using the latter method. So, here’s the letter from CEO Ryan Coblin, in its entirety.

Dear Shareholders,

It’s my pleasure to have the opportunity to discuss UDS Group’s Universal Delivery Solutions (UDS) with each and every one of you. There are many thoughts that I have sitting here, and it is a privilege for me to be able to convey them to each of you. I believe that before I can discuss future opportunities, I need to first digress so we can all see where we have come from, where we are today, and where we look to be in the future.

As most of you know UDS was incorporated in August of 2004, to offer a Delivery Management Solution to service industries in North America. From the very beginning,UDS has always known that the only constant over the course of time is change, and in knowing this, UDS developed a business model that could adapt to any change, whether it is a client’s need, technology advancement or a consumer need. All being equally important, UDS believes the most important aspect to our model was to make sure that no matter the size of the client, or the industry they are in, is to have the ability to mold and model our solutions for their specific needs. This endeavor is what truly makes us Universal.

UDS has spent the better part of a year and a half on research and development and on site beta testing making sure that our systems had the required integrity. It is important to understand that UDS continues to strive, and always will, in the undertaking of R&D for our clients, making sure we remain ahead of the curve by integrating new and innovative technologies.

In the course of UDS’ first year of operations, we were able to secure an agreement with S.W. Florida Regional Development Inc., which owns and operates the rights to the largest sandwich chain in the world in Southwest Florida. The signing of this agreement was a great testament to all the hard work and vision executed by UDS. UDS has since been able to sign to a test agreement with Salad Creations, which recently made the list of the top 50 franchisees to own, announced by Franchise Business Review, as well as becoming one of the fastest growing private companies reported by the South Florida

Business Journal. UDS has also secured an agreement with Puerto Rico 7, which owns, operates, and has rights to 7-11 in Puerto Rico. In addition, UDS has also entered into a strategic partnership with DevStudios International. DevStudios is proud to be one of Canada’s 100 fastest growing companies ranked by Profit Magazine and also the winner of the 2004 Microsoft Canadian IMPACT Award. This partnership allows UDS unlimited roll out capabilities and eliminates costly on site installations.

To date, illustrating a single client, UDS has processed thousands of orders, increased sales upwards of 10%, almost tripled ticket averages, and has shown about 75% customer retention. We believe, as we continue the process in expanding our business, these initial results will be just “the tip of the iceberg.”

It has always been important for UDS to offer as much current financial information to the public as possible. For the better part of a year, UDS has been working with SEC counsel and accountants to insure this happens. We reported in the fall of 2006 that we did not have all the books and records we needed to complete an audit for the years prior to the date we completed our purchase of Blini Hut, Inc. With our current accountants and counsel, I am glad to say most of our initial roadblocks have been remedied and we will be looking to finalize an internal audit shortly in order to voluntarily become a reporting company under the Securities Exchange Act of 1934.

We feel that the opportunities that lie ahead for UDS are endless. I feel that the passion, vision, and dedication of UDS is unparalleled. UDS looks forward to future accomplishments that will help transform the way companies look at their business, and the way the consumer perceives them. “With passion and strength of conviction anything can be accomplished,” Ryan Coblin.

Sincerely,

Ryan F. Coblin
Chief Executive Officer

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.
Mr. Ryan Coblin, 888-328-1888

The newest addition to the NASDAQ’s bulletin board listings is Patient Portal Technologies, Inc. (OTCBB: PPRG). Previously traded as a pink sheet, the NASD approved the move, effective as of Friday, June 22nd.

Patient Portal Technologies is a provider of technology solutions and process improvements for healthcare institutions. The company’s products and services utilize a state-of-the-art proprietary software platform that optimizes patient flow, reduces administrative costs, and maximizes reimbursement.

For all intents and purposes, Patient Portal is a new company even though the stock has been trading for a few months. They had no revenue in 2005, and $1690 in revenue for 2006 (which may as well have been $0). For the first quarter of 2007 though, the company generated $251,978 in sales. That’s a fairly big jump, and may confirm the business plan is viable now that the operation is up and running.

Side note: Though not required to as a pink sheet company, Patient Portal Technologies voluntarily submitted quarterly and annual filings with the SEC.

In the world of biotechnology, things can drastically change overnight. If you don’t think so, just ask the folks at Pacific Biometrics Inc. (OTCBB: PBME). After seeing their stock plummet to 45 cents on Thursday - yet another new 52-week low - the company announced Friday morning they had been awarded a $2.1 million contract by a major pharmaceutical company. Just for some perspective on how big of a deal $2.1 million is to Pacific Biometrics, they generated a total of $10.7 million in all of their last fiscal year. So, it’s about 20% of their current annual sales figure……not a bad boost.

The sponsor company wasn’t named, but PBI did say it was a multinational pharma name. The contract will provide funds for PBI to complete Phase III testing of the sponsor’s rheumatoid arthritis treatment, as well as testing of a related biomarker.

The last four quarters have seen a slight dip in total revenues, perhaps explaining the stock’s tumble from a high of $2.18 in 2006, to the current price of 45 cents. However, the size of the pullback is hardly commensurate with the slide in sales. In the past four calendar quarters, PBI has raked in sales of (in order, and in millions) $2.6, $2.6, $2.2, and $1.7. For the twelve month stretch, that comes out to be $9.1 million. It’s not quite as impressive as last fiscal year’s $10.7 million, which ends on June 30th of every year. But, does it merit a 75% devaluation in shares? Maybe - it all depends.

Last fiscal year, the company also turned a profit - the first in three years. It wasn’t anything earth-shattering….just $179,000. Yet, it was a drastic improvement from the $2.9 million loss a year earlier. Perhaps what’s driving the stock lower this time around is how the company is back in the red; three of the last four quarters were unprofitable again.

Still though, when seeing how well this stock moves to even just the slightest of net margins, we have to wonder if one positive quarter could pull the stock back up in a hurry. PBI will soon have $2.1 million to answer the question with. The current P/S ratio, losses not withstanding, still makes for an interesting value play.

Just an FYI in case any fans or owners of the company formerly known as Phinder Technologies (OTCBB: PHDT) were wondering why ‘PHDT’ wasn’t a working ticker anymore…..the company has a new one - and a new name to boot. Effective as of today, the company is Zupintra Corporation Inc. (OTCBB: ZUPC).

Nothing else has changed with the company. The price history, valuations, and the underlying opportunity are still the same.

It may take a few days for your data provider to switch over to the new ticker, though PHDT may actually work in the meantime.

Also, don’t forget that any shareholders as of Friday, June 22nd will also be entitled to a stock dividend. The company is adding one share for every twenty you already own. Also, for every 20 shares you own, you’ll also be receiving a warrant with an exercise price of 18 cents. The warrants will be good for six months.

If persistence really does pay off, then owners of China 3C Group (OTCBB: CHCG) may get another incremental reward soon. Currently trading at $7.75, this stock is close to making yet another new 52-week high, after doing accomplishing that task on Friday with a high of $8.00.

In fact, CHCG has hit new annual highs several times this year already. Even more impressive is the size of the collective effect of those rallies - China 3C is up 409% since making a bottom in early October.

A move of that proportion might normally be a tough act to follow. However, some trader’s argue the uptrend is still plenty strong, and the room for recovery is still huge - this stock was trading in the $20’s in early 2005.

So why does everybody seem to want it now when nobody wanted it then? As usual, results….or at least  the promise of them. This was taken straight from a recent press release….

Zhenggang Wang, CEO of China 3C Group said, “We expect to record revenue in the range of $360 million to $380 million and net income of $27.0 million to $28.5 million for the fiscal year ending December 31, 2007. Earnings per share are expected to range between $0.50 and $0.54 per diluted share.”…”We are also reiterating our previous guidance regarding store openings. We expect to open 1,200 stores by the end of 2007 and anticipate opening 4,000 total stores by the end of 2010, at which time we believe we will be realizing annual revenues of $1 billion.”…The company intends to be listed on a major U.S. exchange by the end of 2007.

Just for perspective, China 3C did $148 million in sales last fiscal year. That feels a million miles away from reaching Wang’s expectation of $1 billion in sales by 2010. But, considering the company managed to improve 2004’s sales total of $32 million by 362%, maybe it’s not out of reach. It certainly would explain the stock’s renewed interest.

Auriga Laboratories (OTCBB: ARGA) appears to be gung-ho about building their dermatological business. Previously known for being a supplier of respiratory disease pharmaceuticals, Auriga announced today they have created a new division devoted entirely to their line of dermatological products. The new division - Advanced Topical Solutions Pharmaceuticals - is 46 salespeople strong.

The focal point will be Azurka, which is Auriga’s salicylic acid cream intended to combat hyperkeratotic skin disorders.

Salicylic acid cream sales totaled up to $28 million last year in the United States. It may not seem like much relative to the United States’ annual dermatological revenue of $4.2 billion. But, considering Auriga did only $3.1 million last year, a piece of a $28 million pie could be significant.

And, Azurka may just be the tip of the iceberg. The company’s growth strategy is horizontal expansion, by adding more and more variety to its product mix. In just the last two months, they’ve acquired licenses for a hair-loss product and an intra-nasal lubricant.

By the way, though they only did a little over $3 million in fiscal 2006, Auriga pulled in $6.7 million in revenue for the first quarter of Q1. How? The introduction of two other new products - a cold and allergy symptom treatment, and a ‘dry mouth’ spray. The company intends to launch two other products later in June, and intends to add even more throughout 2007.

Based on the success of previous drug introductions, and plans to add more, Auriga could be telling an interesting growth story.

The OTC Bulletin Board Market may be bigger than most investors realize. Take a look at these bulletin board statistics from May:

• Total OTCBB-Listed securities: 3471
• Total share volume (month): 50.8 billion
• Total dollars traded: $4.3 billion
• Total transactions: 1.1 billion

And what about the average price-per-share? Again the numbers may be a bit surprising.

• Average price of domestic OTCBB stock: $0.08
• Average price of foreign, OTCBB-listed stock: $0.37
• Average price of OTCBB-listed ADR: $0.87

Surprised there are over 3000 OTC bulletin board issues? That’s quite a few, but just for perspective, there were more than 6000 in 1999. That may have been a tad frothy though….by the end of 2000 (when the bear market wasn’t even that bad yet) there were only 4000 bulletin board stocks left. Some were acquired….many just went away. Ironically, transacted dollar volume was about 50% higher in 2000 than it was in 1999.

We’ll look at these stats on a regular basis, commenting on the ones that may have an impact on your small and micro cap trading.

Though its progress started out as a trickle, the floodgates were finally opened this past week for Worldwater & Solar Technologies Corp. (OTCBB: WWAT). Where average volume had been around one million shares per day, the surge that began on May 30th has seen average daily volume closer to six million shares.

And it’s not just churning - there are real gains behind all the activity. WWAT’s closing price of 70 cents on the 29th is well beneath the current trading level of $1.19…..41% under, to be precise.

What caused the spigot to get turned on? The sudden rally coincided with the announcement that the company signed a letter of intent to acquire ENTECH Inc. - a solar power technology company.

The union may well be a fruitful one. Worldwater is a solar electricity engineering outfit, and ENTECH manufactures next-generation solar panels. Combined, the two have an opportunity to develop an ‘energy synergy’.

As alternative energies grow in popularity (either by demand or legislation), further unions like this one may become the norm. In the meantime, the new Worldwater addition seems to be a big hit with investors.

Apparently investors welcome cougars to the bulletin board with open arms. Though only a few weeks into its life as an OTC stock, Cougar Biotechnology (OTCBB: CGRB) has already made a big splash, in addition to making some huge gains for its earliest investors.

Its first trade was at $9.75 back on February 8th. It raced to $20.00 almost immediately before settling back in to close at $17.50 that same day. After a brief revisit of the $12.95 level, this beast finally found a footing and rampaged right up to the current level of $27.25. That’s a 55% gain from its first tradng day’s closing price, or a 179% gain for the lucky stiff who managed to be the first one in when it was unleashed in early February.

Regardless, young or not, the stock is attracting some attention.

Cougar Biotechnology’s focus is on oncological drugs. They’ve got a prostate cancer treatment currently in Phase II trials, and a non-Hodgkin’s lymphoma treatment in Phase I. There’s also a solid tumor treatment in the works. The interim Phase II results for the prostate cancer drug look promising.

Volume is ‘consistently erratic’, though the momentum has been consistently consistent….at least for a new micro cap. 

The name GlobalSCAPE (OTCBB: GSCP) first appeared on the Micro Cap Press site last week, on the heels of some rather encouraging stock buy-back news. The company is back in view again, but for a slightly different reason this time - Q2 guidance.

In short, GlobalSCAPE anticipates quarter-over-quarter growth of 170% in the second quarter of this year, which would mean sales of about $6.2 million when it’s all said and done. A big Department of Defense order was attributed as the reason for the boon. Though the company doesn’t expect every quarter to be as productive, they don’t necessarily feel that Q2’s results are going to be a one-time-only windfall.

Regardless, the market liked what they heard, and sent shares up by 12% to the $3.00 level - an irony in light of last week’s announcement.

How so? The company has been trying to position its shares for an AMEX listing, with the intent of getting the kind of attention they feel they can’t garner by being a bulletin board stock. To raise the share price, the company was planning a stock buy-back of 6% of its shares. The maneuver would likely push the stock’s price up to the $3.00 threshold the AMEX prefers for its listings.

After today though, the stock may qualify for an AMEX listing without the buy-back. All the same, we expect GlobalSCAPE to proceed with the repurchase plan to get GSCP shares well past the minimum requirement. The Q2 guidance is just an additional boost.