BillRacer1,
I believe the Liberty stuff had minimal impact on the company.
First of all, if the comments placed on this thread by Liberty are any indication, they are not capable of building a persuasive argument for investing in anything. Carefully examine the comments made here for content. It is zero. This is not to say there isn't a story building here, there is. Liberty is just a pr firm doing pr type stuff; generating excitement, drawing attention, etc. Sort of like hiring a radio disk jockey to come out to your furniture store or auto lot for the big grand opening.
Secondly, if my first point is true, why would USDI keep them on? I wouldn't.
So they are gone. As they had little effect while they were around, no one is missing them. The market seems to agree.
The real story here is a very good management team, operating in a industry bound for explosive, but as yet, undefined growth. It should be obvious they are using an acquisition strategy to growth. Very similar to what John Malone did with TCI. Buy up the small mom and pop outfits in your unconsolidated industry. Right now, because of the infancy of this industry, everyone is a small mom and pop operation. Some are well run, others are on their way to bankruptcy. It all depends on the management. It takes a good manager to spot management talent, which is what USDI has in spades.
Why all the small outfits in the marketing/sales portion of this industry?
Huge start up costs, running in the billions, have loaded down the Iridiums with large debt loads. They cannot afford to further burden themselves with the fixed costs of an in house sales force. So out source it to others, at least for the time being. Hence the opportunities for the smaller outfits.
Great opportunities do not automatically translate into success for small companies. Timing, accurate assessment of technical advances, careful husbanding of limited cash, and many other tasks place great stress on the skill sets of the managers. So only the experienced, smart managers will survive here.
With USDI we do have a better than average chance of being a significant part of this mobile communications industry. The sustained increase in stock price indicates there are others coming to the same conclusion. No guarantees of course, so it is still risky.
I stumbled into this thing and almost gave up after watching the stock just sit there around 1 for some time. Glad I didn't.
What I did was sell enough of my shares to get my original investment back plus 40%. I'm going to let the rest ride. If they go broke, I've done ok. If not, this could be a lot of fun. In any case, I've removed my emotions from the stock.
Best to everyone,
Jack Simmons
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