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Tuesday, 08/19/2014 9:37:38 AM

Tuesday, August 19, 2014 9:37:38 AM

Post# of 1188
Very interesting quarterly report from USRC, with positive undertones. Quite surprised people haven’t noticed? But then again this board has been quiet for some time.

There were three main items which really caught my attention:

First, USRC completed a transaction, buying a company called Top Flight. USRC didn’t announce an LOI or an intent to buy the company, they simply just completed the transaction without fanfare and announced the completion. To me, that is a solid move for an OTC company…no fluff, just execution of the plan.

Second, on the financials side; the net loss per quarter is the lowest ever from what I can see. But that’s not even the real story. The Top Flight acquisition has some interesting financial tid-bits which may radically alter USRC’s next report. USRC was only able to claim revenues for Top Flight for a small part of the quarter. But the company included notes showing what “could” have occurred had the acquisition occurred on Jan 1, 2014 instead of May 23. Although it requires a bit of math on the part of an investor, you can quickly see how this transaction brings USRC into a positive EPS. Had the transaction occurred on April 1, the Q2 report for USRC would show a positive EPS for the quarter from my math.

Third, and potentially most interesting: If you go back and look at the total shares outstanding for the Q1 report, USRC showed 81,588,090 shares outstanding. On the Q2 report, the shares outstanding DROPPED to 71,691,983. This represents over a 12% reduction in total number of shares outstanding. According to the report, this also seems to include all issuances relating to the acquisition, as well as new investment, as well as the retirement of shares. So basically, the company appears to have been able to execute the acquisition of Top Flight without diluting shareholders at all (actually the opposite).

So in essence, the Company was able to acquire $1.6 million in new revenues (and growing), conduct the entire transaction in stock, raise a bit of money while placing the entire company on a positive EPS track, all while REDUCING the total number of outstanding shares from Q1-Q2. Pretty amazing to me, and pretty positive for the shareholders going forward.

The fact that the company isn’t trumpeting this loudly is another positive sign that there is still more to come. I am surprised that the stock has not yet reacted and risen based on the new share-base. We appear to be significantly undervalued here based on my read. Will be actively looking at USRC now.