"UniComp, Inc. markets and supports computer and payment processing software products for Unix-based computer systems and point of
transaction processors worldwide. The Company licenses its technology to a cross section of industry including, manufacturing, distribution,
transportation, public-sector, point of sale, and financial transaction processors. Additionally, the Company provides installation, training, systems integration and maintenance services serving a worldwide network of end user customers, dealers and distributors."
That is not the same buisness as TPII. Y2K fixes, which both stocks have in common, are neither stock's core buisness. Personally, I look at the Y2K as icing on the cake for TPII, and am not counting on it to make any difference in the share price. Right now, TPII has a mere $9 million market cap in an emerging field that could be worth hundreds of millions. TPII has also been a "hot pick", when priced at $4 last August. The only thing that has transpired between then and now has been a gradual sell off on lack of news. I believe it was hard for them to land contracts at the onset because 1) they offered no solutions for companies who wanted to transfer their legacy systems to Windows NT, the platform of the future, and 2) Companies were reluctant to trust their network conversion process to an untested startup.
What has changed is that they now offer an NT solution and Peugot has bitten, which will signal to other companies that it is safe. The PR firm recently hired by the company (another good sign) has announced that there will be three meaty announcements in the near term: a year 2k fix (which I'm not daring to set my hopes on) and two major contracts (upon which my hopes firmly rest). Furthermore, six additional contracts are anticipated for the next quarter. This company is cheap as dirt right now compared to the potential (which hasn't changed since it sold at $5 a share) and has the high profile customers (Peugot) and partners (Oracle) to inspire confidence in both potential investors and customers. In my opinion, there is no way that Oracle could have seen their product and agreed to an alliance if they saw no potential in the company. Why would they risk their credibility for a start-up?
In conclusion, the reason we're "investing in this risky penny stock when we could be investing in UCMP" is becuase the potential for us to gain several times our investment in return over a relatively short term is much better with a $.75/shr hopeful trading near a year low than a $8/shr company trading near a year high. The risk to reward ratio is greater.
Actually, I think UCMP looks good, but hopefully no one invests in any one stock exclusively. While I might watch and eventually buy UCMP, tpii is definitely worth the 20% of my portfolio that I put in it, IMHO. Why choose when you can have it all? Mix a few solid picks with a few risky ones for a fun-lovin' growth portfolio.
Chimi |
