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UNIVERSAL EXPRESS
(OTC: BB: USXP)
PRICE: $0.35
Stock Picks1.com is pleased to profile a new stock: Universal Express (OTC:
BB: USXP).
There are two things we like about this stock: (1) the future potential of
the company and (2) the incredibly low stock price given what the firm has
right now. In our opinion USXP is poised for a major run where it could
reach the $1-2 range short term, and the $4-$5 range in less than a
year, possibly sooner.
REPORT:
USXP has five subsidiaries that currently generate about $11 million in
revenues a year. We believe revenues should double or even triple this
coming year.
There are several USXP aims we find particularly interesting: (1) To create
a
unified network of the fragmented $10 billion a year private postal sector,
(2) To use this network as a logistical hub to capitalize on web e-commerce,
(3) To increase its involvement in the growing international shipping
business, and (4) To branch off into other profitable enterprises, such as
in
the entertainment industry.
One of the company's five subsidiaries - Skynet Miami -- of which USXP owns
51%, is part of the Skyworld International $100 million shipping network,
reportedly the fifth largest independent courier carrier in the world. This
subsidiary specializes in discounted international shipping and currently
generates revenues of approximately $7 million a year. It has a
particularly
strong presence in Latin America. For example, SkyNet Miami reportedly ships
more items to Peru than any other shipping company. Shipping to Latin
America
is expanding rapidly and this USXP subsidiary is well positioned to take
advantage of the growth. Furthermore, Skynet Miami could serve as a
logistical bridge between e-commerce sites in the U.S. and consumers
overseas, especially in Central and South America. Currently, many
e-commerce
sites in the U.S. will not ship to overseas customers because of the hassles
involved. SkyNet can help as the logistical go between. Furthermore,
SkyNet
Miami is poised to benefit dramatically from its synergy with another USXP
subsidiary, the Postal Business Center Network (PBCnetwork.com), which is
connected to more than 7,000 private postal locations that do an estimated
$300 million in international shipping alone. This provides a treasure
chest
of potential business for SkyNet Miami and should result in a major increase
in revenue for USXP.
In a different vein, the company's Manhattan Concierge subsidiary
(http://www.manhattanconcierge.com), provides tickets for theater, sports,
and special events as well as concierge services. It brings in about $4
million a year in revenues. USXP believes this business should do
considerably better as it becomes better known. Plans for acquiring other
complimentary entertainment companies are in the works.
With about $10 million in total revenues -- and poised to do significantly
better -- we consider USXP an amazing value at the current market price of
$0.35. At such a price the entire company has a market cap of around 2.5
million, a total steal for what is at hand.
One of the probable reasons the stock is so low is that shareholders are
disillusioned with the company in the aftermath of several reverse splits.
The market value of the stock following the last reverse split was about
$4.20 but quickly slipped, as most stocks do after reverse splits, to settle
today at $0.35. But the company has only gotten stronger since then, and so
we believe there is an excellent opportunity here.
Besides being a bargain, we think there is another reason for the stock to
climb fast with new investors taking a chance with the company. The float
is around
3 million shares with 7million shares total outstanding and about 6,000
shareholders. Therefore each shareholder controls an average of 850 shares,
or about $297.00. So, the following scenario should unfold with new buyers
coming in:
(1) Each individual shareholder controls few shares; so few that he will
probably go along for the ride and not sell into new investors' buying.
With
heavy buying and no selling the price should rocket.
(2) However, even if current shareholders decide to sell into a buying
spree, having so few shares it is unlikely they will put a damper on upward
momentum. The stock should rise anyway.
Not a bad situation at all!
The company itself thinks its shares are undervalued and has authorized a
buy
back program for its own stock in the open market. Up to 7% of all new
funds
raised by the company and up to 10% of monies coming from any corporate sale
can be used to buy stock in the open market. If this isn't a sign of a
company that has faith in itself, we do not know what is.
We think USXP has a bright future, we think the company shares are
undervalued and we think the stock can rocket quickly with the arrival of
new
investors. We are excited by this stock's prospects and plan to buy shares
for ourselves beginning Monday, October 18. We believe USXP has the
potential to be at the $1-2 range in less than a week, and in the $4-$5
range
in less than a year, possibly sooner.
END REPORT
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cannot warrant or guarantee the accuracy of this information. All statements
contained herein are deemed to be factual as of the date of this report and
as such are subject to change without notice. Stockpicks1 is not an
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as such Stockpicks1is not offering investment advice or promoting any
investment strategies. This profile, once again, is our opinion only and is
informational/educational in nature. Stockpicks1 is not offering securities
for sale or solicitation of any offer to buy or sell securities. An offer to
buy or sell can be made only with accompanying disclosure documents and only
in the states and provinces for which they are approved. Stockpicks1 has the
option and retains the right to buy or sell shares in Universal Express
(USXP) at any time, including before, during or after the dissemination of
this report. Stock Picks1 has received options from USXP to purchase shares
in the company as follows: 200,000 shares at $.20, 200,000 shares at $.30
and 200,000 shares at $.40. Stock Picks1 has not received cash from USXP for
the dissemination of this report. However, because Stock Picks1 does have
options to buy stock in this profiled company there is an inherent conflict
of interest in Stock Picks1 statements and opinions and such statements and
opinions cannot be considered independent.
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The Stockpicks1 stock profile contains or incorporates by reference
"forward-looking statements," including certain information with respect to
plans and strategies of the featured company. As such, any statements
contained herein or incorporated herein by reference that are not statements
of historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words "believe(s)," "anticipate(s)," "plan(s),"
"expect(s)," "project(s)" "anticipate(s)" and similar expressions are
intended to identify forward-looking statements. There are a number of
important factors that could cause actual events or actual results of the
company profiled herein to differ materially from these indicated by such
forward-looking statements. |
