More Universal Expansion
And the progress continues. Announcing a deal today expected to add millions to a steadily improving bottom line, UDS Group, Inc. (OTCPK: UDSG) management plans to bring its location mapping operations in house, utilizing internally developed state of the art technologies.With executives forecasting the move to save a 3 week lead-time and $80K per 100 locations, this move should work wonders for UDSG's bottom line, especially since by management's account, the company is virtually debt free other than daily operating expenses and approximately $50,000 which it looks to repay over the next few months.
What is UDSG?
Mr. Ryan Coblin, CEO of UDS, commented"We are entering into a time of expansion here at UDS. I tasked our engineers and partners to have this in place right away as we anticipate large nationwide rollouts of our proprietary delivery solution. This is a huge feat, now after the participating locations' delivery area has been approved; it is just a few minute process to literally draw in the delivery area of a participating location.
In the past, this process took weeks was expensive and cumbersome."For those of you unfamiliar with UDSG, here is a rundown of their recent activity1. A stock buyback of as many as 10 million shares;2. The recent retirement of 27 million shares;3. The paying back a debt with cash generated through operations making them virtually debt-free; and4. A who's who client list including Subway and 7-Eleven.
Working with the Country's Fastest Growing Private Restaurant
Although Subway and 7-Eleven are likely first to jump out at you when taking a gander at UDSG's growing list of big name clients, don't overlook Salad Creations.
The company is a rapidly emerging, health-centric, quick-service restaurant franchise with 20 current U.S. locations and aspirations to establish 60 by the end of 2007.As U.S. consumers grow increasingly health conscious (as evidenced by Subway's commendable performance over the past decade) Salad Creations could provide a substantial revenue boost for UDSG.
Another Big Move
Today's move should have a positive impact on margins and increase UDSG's operational efficiency. Management must believe as much, they did recently announce a stock buyback a few weeks ago of as many as 10 million shares and have also recently retired 27 million shares or 12% outstanding capital stock by paying back a debt with cash generated through operations.
If the company thinks that buying back shares at current levels is a wise venture, shouldn't we? These bold moves should be viewed very positively by current and prospective shareholders. Weigh your risks and rewards here closely. A dime now could look a lot better come earnings time, particularly with $30M already logged and cash flow positive days a trend expected to continue for the foreseeable future.
Labels: UDS Group Inc. UDSG

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