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 doing so - 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 that 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 that fact 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, while volume has been thin. Today’s 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.