Heard Jensen on the radio today. The IBM news is this. THey hope to be expand their current "joint venture" into a strategic partnership. This is a much higher level union. Currently, they are working on a letter of intent and hope to have news soon.
A strategic partnership means, for instance, that IBM gives them a better price on equipment (increasing their revenue), IBM will help USTT finance equipment purchases, they will provide support for the equipment, and most importantly, they will help install it. Right now, USTT can only do 15 installations a month, maximum, because they only have personnel to do that many. This partnership, if it takes place, will mean IBM personnel will help install the business centers. This is quite a huge thing and will allow for much more rapid expansion.
Also, it adds another level of credibility to USTT. IBM would not waste resources like this if they didn't see strong profit potential for themselves. That means selling lots of IBM PCs to USTT. Which means IBM thinks USTT can sell lots of business centers.
Cross your fingers. Stock action has been good lately on this news leaking. CLosed over 40 cents today. |
