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PlayinDemStocks Terminated
05/24/06 2:09 PM
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PlayinDemStocks Terminated
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Utix Group (fka UTIXQ) RSS Feed

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Created
05/24/06
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Utix Group (OTC BB: UTIX $2.10) offers prepaid experience tickets that are cobranded with corporate and retail buyers. Unlike a traditional gift card with a specific monetary value, Giftix tickets emphasize an experience by providing the holder with access to more than 12,000 locations including golf courses, ski resorts, movie theaters, bowling centers and spas nationwide. Purchased for a fixed price, Giftix tickets are not subject to changes in admission prices, fees, restrictions, or blackout dates. The big plus for UTIX is its patent-pending platform via a payment network relationship with Discover Financial Services and processor Wildcard Systems/ efunds, which processes more than $6 billion annually in retail gift cards. These relationships enable merchants to redeem Utix tickets by simply swiping them through their existing credit card point-of-sale machine. UTIX has a solid fundamental business comprised of many high dollar clients. UTIX has no debt, over $3 Million in cash, low operating expenses, and 25% pre- tax profit margins. BUYINS.NET added UTIX to the naked short list yesterday, incorrectly reporting 37.4 Million shares outstanding and an undisclosed short position. On a fully diluted basis UTIX only has 6,447,535 shares outstanding. More than 40% are owned by one long- term, institutional investor. The price they paid is close to the $2.10 UTIX trades for today. With a solid base of long-term shareholders and a low float, in our opinion shares of UTIX could move much higher. Since UTIX is 18% closely held, it is also our opinion that anyone who owns the stock under $3.00 will have an opportunity to ride along with management and make a lot of money on the stock. UTIX Highlights Fortune 500 and Agency clients have included American Express, SBC, Bank One, Carlson Marketing Group, Discover Financial, Frequency Marketing (a Verizon program), Dr. Pepper, Citigroup, Hewlett Packard, Nestle and Pepsi Cola. Over 12,000 retail outlets including Staples, 7- Eleven, Long's Drug, RiteAid, Kroger CS and in Fall 2006 new placement with CVS and Wal- Mart. Selected by FOX Studio to place Utix First Release Gift Tickets at 7-Eleven nationwide for March 2006 Release of “Ice Age 2”. Selected by Warner Brothers Studio to place Utix First Release Gift Tickets at Staples and Longs Drug nationwide for May 2006 release of “Poseidon”. Executed a three year co-brand agreement with Red Door Spa including Elizabeth Arden and Mario Tricoci scheduled to launch first three spa experience ticket products in May 2006. Strategic negotiations are underway with major brands in golf, snowsports, Major League Baseball, theatre productions, concert providers, and many lifestyle and entertainment venues and brands. Gift card sales have exploded, growing from $16 Billion in 2000 to $45 Billion last year and 2007 forecasts are $89 Billion. Last June, Home Depot Inc (HD) made news by reporting $43 million in income from “gift card breakage”, which in non-accounting speak means income from gift cards that were purchased, but never redeemed. In some states, lawmakers want to prohibit customer fees on bank-issued cards for seven years. Industry analysts told the Boston Globe that bank-issued cards -- which can be used virtually anywhere Visa, MasterCard, or American Express are accepted -- may not survive if businesses are forced to eliminate the fees.
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