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This is an interesting situation. Us Wireless was an IPO at $10 a share. The price quickly dropped to the $3 range. Initial investors filed a class action law suit base on over valuation of the IPO price. While the case was in progress USWDA was delisted to the BB and has traded in the penny range ever since. The case was settled over a month ago, however news top this affect has not yet been released. I think, pure speculation, they are probably restricted from anouning the settlement until payment has been made. So what's interesting? This is a good company with very low overhead and a good product/service. Additionally very little buying seems to move this stock (look at the chart). They are in the credit card approval business, I should say they are going to be, they are just finallizing their first major client, a hotel chain. Most credit card approval companies charge 1.85% per transaction, it's a VERY profitable business. Plus the call in machine is usually sold to the client for around $500. USWDA is planning to charge 1.65% per transaction, and will supply the machine for free. Seems like they should win the contracts to me. A hotel chain with let's say 250 locations accross the US and $4000 plus transactions, mostly by credit card, per location per night would save $2000 per day. On the USWDA side, they would make $16,500 in the same night. This is for one client. USWDA only has 9 employees. Figure out the sales with lets say 10 clients, hotels and restaurant chains. This stock is currently trading in the .25 cent range. Sound undervalued to you? | ||||||||||||||
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