UDW - US Dataworks, Inc. Turnaround Play Under $1.00 Message Board

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Microcap & Penny Stocks : UDW - US Dataworks, Inc. Turnaround Play Under $1.00

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From: Thomas Kirwin	8/19/2006 9:33:23 AM
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2nd Quarter Revenue & EPS Guidance Charles Ramey said that they expect to generate $1.4 to $1.9 million in revenue and a loss of $0.02 for the 2nd quarter and maintained annual guidance of $7.8 - $8.2 million with +.03 eps. Until transactional volumes increase quarterly earnings will not be stable. The top line growth is good and I expect that they are close to critical mass in transactions processed, but given their track record with eps guidance it is my opinion that the bottom line could be worse than $0.02 loss for the next qtr but who knows. Disclosure - I'm holding on for long term gain - projecting that UDW will be trading at $2.50 - $3.50 in 10 months unless they are acquired before then. Just look at the valuations assigned to other players in the ECC (Electronic Check Conversion) marketplace. finance.yahoo.com Lets not forget other competitors - Wausau Financial Systems, J&B Software, Nova, Metavante, Data Treasury, ACH Direct and Alogent as they do not seem to be publicly traded. Nova - novainfo.com Wausau - wausaufs.com JB Software - jbsoftware.com Metavante - metavante.com Data Treasury - datatreasury.com ACH Direct - achdirect.com Alogent - alogent.com I find it interesting to note that Chuck Ramey said that he expects significant consolidation of the ECC remittance industry players to take place in the very near future. Some players have divested themselves of non-core divisions to become attractive acquisition targets and or hired outside brokers to research strategic alternatives. The three that come to mind are Trintech (TTPA), LML Payment Syatems (LMLP), and S1 Corp (SONE). S1 and TTPA have recently sold off units for some big bucks - could they be an acquirer or acquiree while LML has hired an outside firm to facilitate a merger/acquisition. finance.yahoo.com Best O'Luck, Tom

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