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Microcap & Penny Stocks : USWE - US Wireless Data (formerly USWDA) -- Ignore unavailable to you. Want to Upgrade?

To: Gregory who wrote (252)	4/2/1998 11:05:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 370

USWDA doesn't make money by selling technology or the TranzEnablers. They plan to make money on a percentage of the transactions fees charged for credit card use. The plan was to have about 70,000 units in the field by the middle of this year. That obviously isn't even close to happening - so far the number of units placed has been less than 8,000. Looking at "total market potential" is great but can also be misleading. The only thing that realy matters is how well the company is actually getting units into the field. Since they must initially subsidize the cost of the units given away (leased) to merchants under this plan, they need to get lots of units out there to generate revenue or their expenses will drain their cash resources. This is potentialy a very important agreement. However, the GTE agreement has so far fallen way short of the placement numbers that were expected. All the good intentions and technology mean nothing if GTE, Bell and other salespeople don't get out there and sell the darn things. I think this is a positive agreement that may cause some competition for the enterprise of placing TranzEnablers that spurs sales to grtow from the current trickle. Unfortunately, I expect to see large losses this quarter and next. If sales mushroom, the 3rd quarter could shape up. Part of what has the stock down, IMO, is that USWDA earlier was predicting profitability by this quarter or next. Now that is not going to happen so some investors are bound to be disapointed. Agreements or not, the final test is whether the company is profitable.