Who is this???
USA Technologies Rated Strong Buy by Wharton Capital Management
August 8, 1997 8:59 AM EDT
WAYNE, Pa.--(BUSINESS WIRE)--Aug. 8, 1997--USA Technologies Inc. (NASD BB:USTT), today announced that New York City-based Wharton Capital Management Inc. (212/582-3400), has initiated coverage of USA Technologies with a "strong buy" rating on the company.
"Our one year price target is $2.50," said Wharton Capital Management analyst Rick Joshi. "We believe that USA Technologies is grossly undervalued at current levels. Our analyses and peer-group comparisons reveal that USTT's valuation today may be lower by several orders of magnitude. One reason for this may be that the investment community is not fully aware of recent developments at the company and especially their far reaching implications for the company's valuation."
Joshi states that "USA Technologies is riding the wave of the cashless revolution with its patented technology for unattended credit-card operated equipment, including personal computers, copy machines, printers and fax machines. Its customer already include six of the top ten U.S. hotel chains as well as large retail locations such as Mail Boxes, Etc. and West Coast Video. USA Technologies is in the process of establishing itself as the leader in unattended credit card technology and intends to increasingly focus on electronic commerce.
"After several years of R&D, USA Technologies is at a critical inflection point in its strategic development. Strategic relationships established with IBM, Lexmark and Minolta have set the stage for rapid penetration of hospitality, retail and other key markets. The company has already received two key patents for its technology, while eight other patents are in process. It is our belief that USA's efforts will continue to result in significant patent coverage spanning all USA's proprietary technology as well as key aspects of the business operating process that makes the company products unique and give USA a strategic advantage in the marketplace as a leader in automated credit-card technology. These patents could also prove to be an incremental source of significant licensing revenues.
"Given its proven management team, unique technological position, superb growth characteristics and earnings potential, USA Technologies is an outstanding vehicle for investors with a short-term as well as long-term view," Joshi concluded.
Founded in 1992, USA Technologies Inc. is a leading owner and licensor of networked credit card activated control systems for the personal computer, copier, facsimile and vending industries. The company's proprietary technologies make available unattended, point-of-sale control systems for credit card payments. USA Technologies also provides "back office" financial services for real-time credit card processing. Business Express(TM), Public PC(TM), Laptop Express(TM), Copy Express(TM), and Fax Express(TM) - which incorporate the company's proprietary technologies - are marketed in cooperation with IBM, Lexmark and Minolta, and may be purchased or leased by commercial outlets.
The company paid Rick Joshi, an analyst for and principal of Wharton Capital Management Inc., compensation of 35,000 shares of freely tradeable Common Stock of USA Technologies Inc. for writing and preparing the report discussed in this announcement. In addition from time to time, Wharton Capital Management and/or its affiliate companies, directors, officers, or members of their immediate family may have a long or short position in the securities of the company, engage in transactions with respect to securities of the company or may have provided or may provide currently or in the future consulting and/or investment banking services to the company.
Any statements released by USA Technologies that forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve substantial risks and uncertainties which may affect the company's business and prospects, including economic, competitive, governmental, technological and other favors discussed in the company's filings with the Securities and Exchange Commission.
A copy of the report is available from USA Technologies by calling 1-800/633-0340.
c Business Wire. All rights reserved. |
