This micro cap stock seems to become a little less micro every day. Universal Delivery Solutions (UDSG) 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.

Here’s today’s press release.