Tapping right into a competitively saturated (no pun intended) $10 billion market, particularly one with the unique dynamics of the water industry - is a very tall task. That is, unless you have developed a revolutionary technology capable of making high distribution costs and eroding margins a thing of the past.
How do you improve on water?
Case in point -
S2C Global Systems Inc. (OTCBB:
STWG).
STWG has technologically perfected a system that automates the delivery of pre-packaged water from supplier to consumer. By automating the entire delivery process and incorporating state of the art technologies including
Radio Frequency Identification (
RFID) to optimize efficiencies, "The
Aquaduct" eliminates storage and labor expenses while holding the potential to reduce overall distribution costs by 65%.
STWG announced plans today to open a mass production facility in Dallas, Texas in order to more efficiently serve customers in Texas and across Southern California (highest bottled water consumption per capita within the US). This is very good sign that management is fully confident in its product, particularly after a very successful initial launch phase.
The Aquaduct
With stated plans to install thousands of
S2C Aquaducts acr
oss America and beyond - it appears that the growth stage is upon us.
Commenting on today's news Rod Bartlett President and CEO,
S2C Global Systems, Inc stated "
Dallas has great strategic value in fulfilling our roll out strategy as it directly ties into the
Texas market and has relatively inexpensive logistics costs for
California". Mr. Bartlett concluded: "The facilities we are currently looking at can be ramped up to produce between 60-80 S2C
Aquaducts per month."
What do we see in UDSG? 
New to our chalkboard is
UDS Group, Inc. (PINK SHEETS:
UDSG), a national delivery company that services chains across the country.
UDSG's goal is create a simplified order and delivery service by providing a "One Number" service to clients. Regardless of where clients are throughout the country, with one call they can reach an extensive network of departments. In a sometimes intensely complicated industry, this should be a breath of fresh air for many. We like this company for a few of reasons.
1.
UDSG is paying off its debt at a rapid pace. To us, this is not only a testament to the strong dedication of the company to its bottom line but also demonstrates quality management and financial organization. (We like a tight run ship, don't we?)
2. With such a quality client base,
UDSG stands to increase its reach to include many larger companies in the market for a simple and efficient delivery solution. With a foot in the door at Subway and
7 Eleven, how many bigger fish are on the way?
3. We always see a stock buyback as one of the highest demonstrations of opportunity for shareholders. With
UDSG announcing a stock buyback of as many as 10 million shares this morning, this says to us that they are seeing something the public may not. If current stock price levels have created an ideal accumulation opportunity for
UDSG itself (especially in these often droughtful summer months), we investors ought to be paying very close attention!
4. In addition to the aforementioned buyback,
UDSG recently retired 27 million shares or 12% outstanding capital stock by paying back a debt with cash generated through operations. Theoretically, a 12% reduction in the number of outstanding shares, is equal to a 12% share price increase. Not bad. This does not even take into account the potential affect of a 10 million share buyback in the market. Good food for thought.
With Clients Like These...Now virtually debt-free, UDSG looks to leverage relationships with partners and clients into the development of a service industry solutions powerhouse. The company's clients & partners now include:
Subway: The #2 quick service chain next to McDonald's with nearly 30,000 locations in more than 85 countries (more US locations than McDonald's);
7-Eleven: The world's leading chain of convenience stores;
Salad Creations: Rapidly emerging, health-centric, quick-service restaurant franchise with 20 current U.S. locations and aspirations to establish 60 by the end of 2007; and
DevStudios: One of Canada's 100 fastest growing companies ranked by Profit Magazine and also the winner of the 2004 Microsoft Canadian IMPACT Award.
Two great companies with great news. This summer is turning out to be chalked full of opportunity. Just think, you wanted to be on a beach somewhere with a fruity drink in your hand. Of course, with investments like these you may have to just bite the bullet and buy that vacation home. You’ll probably need the tax deduction soon enough anyway!
Already trading on relatively enormous volume of 1,250,000 shares as of 11:12 ET, S2C Global Systems Inc. (OTCBB: STWG) systems has garnered a great deal of investor interest on news that it has significantly expanded its immediate addressable opportunity with the pursuance of business relationships in the European Bottled Water Market.
