OK Fred, can you share the bad news with us?

The news will have to be very very bad before I bale.

Hello Sewer Dog. I don't know what the late shareholder newsletter means, if anything. But I suppose we just wonder...........

I continue to buy in the .13-.14 range (and sometimes up to .15) when I've got any available cash. UGSI is my "swing for the fences" stock at this particular time. I've held this stock for over 10 years and can't see a reason right now to give up on it.

But a time will come when I, and others, will no doubt have to do some soul searching about UGSI. But I hope you keep buying, and you won't hurt my feelings if you surpass my holdings.

That is one of the great questions of UGSI, and other non-filing companies.

I've asked before on this board whether anyone has any knowledge of the source of UGSI's revenues. For example, does it come from the manufacture of PVC pipe, does it come from the use by others of UGSI's fusible pipe technology, does it come from project oversight, does it come from royalties from patents, or does it simply (and maybe ONLY) come from selling new shares. You get the picture. I believe that investors can't really get a feel for the future of this company until they better understand where it makes it money. When we learn that, we can apply those revenue sources to the national and world economy to judge the general direction of UGSI's future revenues.

Operating expenses, etc, will come second, in my feeling. I want to know how they are generating cash.

Look, I hold a ton of this stock. I've said more than once on this board that from what I understand UGSI does, and looking at the worldwide need (not demand just yet) for those products and services, it surely has a bright future if the company is properly managed.

Just my opinion.

Yep, the trade volume was as you noted, but the bid and ask volumes during most of the trading day was pretty large. Problem was the spreads were too wide and nothing was traded. Regardless, I still like to see a large bid volume in place.

Looks like there is increasing buying interest in UGSI.

A pretty healthy volume in the low to mid .15's.

Yep, my wife doesn't feel the same way I do about "investing". CD's are her idea of an "investment", and a can in the back yard is her idea of a bank.

But unless one has a ton of money, annual returns of 1% to 3% year after year will put a person in the poor house real fast.

I don't have access to the time and sales data on my purchase date, but as I remember I was seeing an ask price of .13 and volume (at the time of my order) of 100K at that price.

I don't believe the current price level (.17) is supportive of any particular event or expectation, but who knows.

But I will buy this all day at .13 (if I have the cash, and my wife isn't looking over my shoulder). But do your own due diligence.

Don't know, but I bought some of the .13 cent shares.

BigJake, good question.

That's the problem with UGSI and similar non-reporting companies. I read Andy's quarterly letter; read their website for new projects; search the web for new or proposed slip-lining projects (regardless of whether UGSI might be involved in them) to gauge the interest in slip-lining and particularly fusible pipe; and any discussion by government entities or companies who are considering pipe replacement or upgrades towards attempting to identify whether these entities are letting loose of funds. Not very scientific, but its all we've got. But if you believe the post-project reports of UGSI's past projects, they have been successful. I am a believer that "success breeds success".

I still believe the demand for UGSI's products is more than huge. Pipes all over this country and the world are deteriorating as we speak, and many need immediate replacement or upgrading of some type. UGSI has, in my opinion, the best product for many of these cases. I firmly believe that the only thing in the way of UGSI breaking out big is these pipeline owners letting loose of the purse strings.

BigJake, its the agony of investing in these sorts of companies. Roll the dice and see what happens - if you are so inclined.

I can only value UGSI based on what I hear from Andy in his periodic reports, and my opinion of the demand for their services. Except for the occasional neutral report, his reports have been progressively optimistic, and I continue to believe demand for its services will surge (not if but) when the economy gets better and governments and companies can spend some money on infrastructure improvements.

What what I can glean about the recent acquisitions, they make sense and may (in time) contribute positively to not only UGSI's bottom line, but also have great synergies with not only what it now does, but also what it may undertake in the future. My sense is there is a well thought out strategic plan, and its success will depend on some points that are in the hands of UGSI, but also some that are in the hands of others.

I believe Andy (and the company attorneys) is smart enough to know that he has to be very very careful in how he paints the progress of the company. He and his staff didn't just fall off the turnip truck.

I continue to be very optimistic about the future of UGSI, but we need some help from the economy.

Full speed ahead - but conduct your own due diligence.

SewerDog, thank you for your kind comments.

I certainly do not hold myself out as a great investor. I lose money just like most investors, but over time have made more than I've lost. Any investor who claims to have this silly game figured out is either naive or a liar. I am neither.

Anyway, I believe those who follow and invest in UGSI understand the condition of our nations infrastructure and the potential of companies such as UGSI. While I am hamstrung - like all of us on the outside of UGSI - on exactly what is happening within the company on a financial level and exactly how the company earns its revenues, from a simple global view of what we investors can glean from the news we are privy to, and Andy's periodic reports, the company is growing and is surely poised to capture its fair share of the dollars that are released for such work.

I find the thoughts and opinions of the posters on this board as very helpful, and hope they continue to participate. I want to hear varied views. I surely don't have all the answers.

Full steam ahead.

Actually SewerDog, I am still committed to UGSI, and will continue to be unless I see or sense poor decisions by management or some other indication that UGSI is no longer a good investment.

I still believe in UGSI's product and that its product and services are sorely needed by companies and governments across this nation, not to mention the world. I am convinced that if these companies and governments had the (financial) resources, companies that provide the sort of services and products that UGSI does, and particularly UGSI, would be deluged with business. How many companies can say that?

So, I've given them about 10 years, and I am not about to abandon them now. It appears progress continues to be made, and progress is all I am looking for. Of all the micro-cap companies I hold, this is the one I believe is the most likely 10-bagger.

But do your own due diligence before investing.

Fred, you are right.

I would suppose there have been many investors over the years invest in companies they believed were undervalued (from the standpoint of the company's potential - not its then current financials), and I suspect many on this board, as well as many UGSI investors who don't post on this board, believe the same about UGSI.

Investors who believe buying the UGSI's of the world is insane certainly have a right to their opinion. But we all invest differently, and while I hold some DJI stocks, I also hold a few UGSI's most of the time. As I've noted below, I have been buying UGSI on dips for about 10 years and I am very willing to risk quite a bit of dough to wait this thing out and maybe end up with a big winner - or a big loser.

So, it seems most posters here are pretty objective about UGSI. I sense they see its potential, but understand its development process is crucial to its long-term success and are willing to hang in for a while to see what management can do. At least that's how I see UGSI - huge potential sales and if things go well huge actual profits.

But do your own due diligence.

I might be wrong about this, but I suspect one of the problems with UGSI - from an investor viewpoint - is that even though there are a ton of shares outstanding, that much of that is (as some here have suspected) held by management and Heckman, but also large blocks held by a smallish number of individual investors.

I don't know whether to call myself brilliant or stupid (only time will tell on that), but I am holding a very large number of UGSI shares. I have been buying them over the last ten years and continue to do so. But because I don't trade them, I am maybe contributing to the low trading volume. But I have no intention of unloading them any time soon.

I know no more than any of the rest of the posters here, but even if you don't like Pres. Obama, there are so signs the economy is picking up in some areas, and if so that will be a positive event for UGSI.


If business is doing better, governments will benefit, and UGSI's customers are both business and government. I am more encouraged every day. But we shall see.............

There are hundreds of cases across this country similar to the below post. While governments are strapped for money to tackle them, they simply can't put off these refurbishment projects forever.


http://www.gazette.net/article/20120907/OPINION/709079718/-1/paying-the-pipers-for-utility-upgrades&template=gazette

Heckman continues (see below link) to get mostly good press. These articles seldom speak about Heckman's interest in UGSI. i don't know if there is any synergy between the two companies in what Heckman does, but one would think that the analysts who write these articles would at least touch on the relationship from time to time.

Regardless, I continue to believe UGSI will be just fine in what they do. But don't buy the stock on my opinion.

http://www.fool.com/investing/general/2012/09/05/heckmann-merger.aspx

Of course, UGSI has to secure these projects, but this is why I have held its stock for the last ten years and continue to add to my position at low prices. And there are thousands of miles of similar poor pipe underground across the US, and other developed countries of the world.

http://www.gazette.net/article/20120824/NEWS/708249566/1124/more-than-1700-buildings-too-close-to-big-water-pipes-wssc-says&template=gazette

But, do not purchase this stock based on this post.

Don't know anything about W&T, but have to assume UGSI management believed it fit its long-term goals and could make the company (UGSI) some money.

Have no idea how this will effect UGSI from a profit standpoint or it finally becoming a "reporting" company, but I'm still in.

Sewer Dog, that's pretty much how I see UGSI. Time might prove us wrong, but I am willing to leave a lot of money sitting in this stock for now.

I can certainly understand why some UGSI investors give up and go on to greener pastures.

But my approach to investing, for what's its worth, is to always have some money (in UGSI's case - a lot of money) in micro - micro companies such as UGSI and some bio-techs. A "swing for the fences" approach. Some of those "investments" have went south ( I wasn't surprised) but overall I've made some good money with this approach.

To UGSI, I've held this stock for about ten years, and keep adding to my position on dips. I remain an investor in UGSI due to what I believe is a huge demand for the service and product it offers. Whether the company can sell those services and products on a grand scale is the question. No doubt, this economy isn't helping such companies. But things will turn someday...............

I believe you are correct. I don't know if I am proud of it, but I am holding a ton of this stock, and based on your numbers the float (assuming the major holders aren't trading their holdings) is small.

I have held this stock now for over 10 years - accumulating it on dips and as funds are available - and while I have been disappointed progress hasn't been quicker, I am not giving up on this company. I still believe in its products and services, and its potential.

Fred, your comment about the 90% issue, if true, is a bit surprising to me. Never heard that.

Can you give us any more information about that?

I'll be glad to take it off your hands. But I want all 500K.

fredugsi, I've got an order in to buy 500K at .15. You can have what's left.

Who knows if the recent volumes are a sign of some new level of interest in UGSI. Regardless of the reason, I suppose I'd rather see it than not see it.

I've held this stock (and a lot of it) for almost ten years, and continue to buy at these low prices. I'm not giving up on it yet. I have to believe current management is taking a slow as you go approach, rather than the constant pumping the prior CEO did. I would rather management build a strong company, and find a calling in its chosen market, than play marketing games.

My biggest complaint - from not going to a "filing" situation - is our inability to see exactly where and how much, UGSI's revenues come from. In other words, are revenues coming from making pipe; selling pipe; project labor charges; patent royalties; etc. You get the picture. Just exactly how is UGSI making money.

Regardless, I continue to see a huge potential demand for fusible PVC pipe. Those who need it (cities, counties, utilities, etc) just need to start buying it !!! I hate to say it is a good thing, but our underground infrastructure just keeps deteriorating, and the owners of those systems can't put off replacing and repairing them forever. Maybe if our economy is finally beginning to recover, the financial conditions of those who need UGSI products and services will improve and allow them to begin replacing pipe.

Someone on here said there are apparently no sellers at .21. I wouldn't and won't sell my position at .21, or anything close to that. Time will tell, but I won't be surprised (if our economy does grow) to see UGSI much - much - higher over the next couple years.

If you look at UGSI simply from the standpoint of the potential demand for its products and services, IT IS HUGE. Demand for a company's services is crucial, and I believe UGSI is sitting pretty - longer term.

For those who keep selling UGSI at .15 to .20 or into the mid- .20's - just keep selling. You are making me, and I am sure many others, very happy.

SewerDog, just been observing posts here, and haven't really had anything much to add.

Like most of us longs, disappointed that UGSI hasn't had a run up in price, but don't believe management has done much publicly to cause that to happen.

The stockholders letters that are posted on this board continue to be positive, but I don't expect much to happen to the stock price until UGSI starts financial reporting and gets off the pink sheets, and more (and more serious) investors can better analyse whether UGSI deserves their money.

Regardless, I'm still holding a rather large position, with no immediate reason to sell it. I'll hold a bit longer and see what happens. I still believe in the UGSI product (as it relates to the immense potential market for PVC fusible pipe installations), but can't speak much beyond that, as only insiders really understand what UGSI is all about as a company.

For example, how does UGSI make its money - fusible patent royalties (I might be wrong, but I don't think UGSI owns the fusible patent); sale of pipe; pipe installation project profits; project consulting; etc ???

If I had Andy on the phone right now I would ask him that question - that is, "what are the sources of UGSI revenues". An important issue in my opinion.

I didn't see anything in the latest shareholder letter to disappoint me about how things are going. I believe UGSI is, as Andy suggests, still in a building status and that is expected.

I do like the "bought" / "sold" analogy, and can see where we are still in the "sold" category. But that's okay.

To me, the primary factor is whether the seamless tech is, although slowly, being tried by more and more end users and if the projects are successful. Seems to me both of those things are happending.

Would still like to see some financials, but I suspect that isn't far off in the future.

I'm holding on, but what others do is their business.

Jackal, thanks for providing that article. There will continue to be those who poo poo UGSI, but I still believe cities and counties can't put off repairing their water and sewer lines forever. I believe if UGSI can remain relevant in the utility infrastructure business, they will get their share of that work - when it happens.

Also, saw a single trade of 60K at the bell yesterday. Interesting.

I understand SewerDog.

No doubt the average daily sales volumes make it difficult to sell many shares quickly, and without putting downward pressure on the price. But it is what it is, and anyone who might or must sell UGSI shouldn't hold much of it.

In my case, I do hold a ton of it, but I have no intention or need to sell it anytime soon. Right or wrong, I am holding UGSI unless I see something that tells me I need to dump it.

We've all given our opinions about and complained about when management is going to begin reporting. Who knows - they may never. But I believe it is more likely than not, and when that happens (and possibly even before) we will most likely see very healthy average trading volumes, and hopefully good price movements, whether it be up or down.

Just my uneducated opinions, so don't take it to the bank.

SewerDog, I've got a simple response, because I believe UGSI's situation is pretty simple.

Without any public knowledge other than what we can see on the company website, and occassional published public news related to new projects done by UGSI, we know little. I can't see that changing until UGSI becomes a reporting company, so we are investing for the most part in the dark. Been that way for a long time, but I am hopeful that will change sooner rather than later.

So, we see UGSI obtaining periodic projects, mostly it seems related to their fusible PVC pipe, and by all accounts the projects are successful. It would be interesting to know how much dough UGSI and related contractors are making from those projects (ie, revenue), but I am most interested in the fact that UGSI's fusible PVC pipe and the applications for it appear to work. And they wouldn't continue to obtain new projects if the techicians within potential vendors hadn't gained some degree of confidence in UGSI and its products.

In other words, I can only judge the company by its continuing (although slow) acquisition of new projects. That is good enough for me at this point in my investment in UGSI. Yes, like most here, I look forward to the company becoming a reporting entity so we can obtain financials to allow us to better understand the company and gauge whether we should continue to invest in this company. But I'm personally not giving up on them yet.

What others do is their business.

Sewerdog, my average price is no where close to $300,000.

Is a buyer taking a big risk in buying UGSI? Simply because it is a penny, not to mention non-reporting, I suppose yes it is. But it is a lot less risky if your purchase price is low.

Would I recommend that someone buy UGSI? Not if they aren't willing to lose most or all of their investment.

My bet on UGSI is likely the same as a lot of other folks - needed huge investments in utility infrastructure. But who knows if UGSI will get much of that work. And who knows if governments will even undertake those projects any time soon. And who knows if UGSI management will properly position the company to capitalize on opportunities. But the same thing can be said of every new company. I had that same concern with the "new" GM.

I am willing to risk some money on it, at least for now. If I lose every cent of what I invested, that's life. I will just then look for another penny.

Remember that all successful companies started small.

Sewerdog, Fred's not the only one with big positions.

I've been accumulating shares over the last five years and now hold nearly a million shares. At any one time I hold three or four penny's as a small part of my total portfolio. Yep, I've lost some money on penny's, but have made much much more than I've lost.

Is that dumb ? It depends on an investors individual situation and investing view. You can't paint every penny investor with the same brush.

For now, I am holding UGSI. What others do is their business.

Folks, I feel your frustration about the delay in becoming a reporting company and difficulty in obtaining operating data on the company. I do hope the company moves to correct these issues.

But I am not giving up quite yet on UGSI. I am holding a large number of shares and continue to acquire shares at these current prices. Time may show this has not been wise on my part. But for now, I'm all in.

I wouldn't be surprised by a buyout, but also believe that a joint venture with a company of synergy is also possible.

Even if neither of those happen, I believe UGSI will do just fine on its own - maybe just a bit slower than hooking up with a good partner.

Good recent posts.

I believe, as with UGSI, we won't really know much about GSPH until it starts public financial reporting. I also agree that Mr. Smith is very good at marketing his startups. But that's not to say there is nothing of substance behind the public comments.

The issue of when USGI will begin public reporting of its business has been an ongoing negative with many UGSI investors and followers of its stock - me included. It seems that event keeps being pushed into the future.

Regardless, I respect Mr. Seidel and team for not constantly hyping USGI, as it was done under previous leadership. I believe current UGSI management has good reasons for delaying public reporting, and I support their "go-slow" method of building the company, without the hoopla of the past.

I suppose in the end, active or potential investors try to constantly gain a sense of what a company is about and where management is taking it. Wrong or not, my sense is that UGSI is making good progress in its industry and the other issues will fall into line at the appropriate time.

Just my thoughts.

Don't know, but I suspect he still has plenty. I believe Mark deserves credit for getting a company off the ground and respected in its industry in a fairly short time. Most companies don't.

Andy and company has to continue to build UGSI in the correct fashion and UGSI will end up a force in trenchless technology. I suspect one could say that it already is. The quarterly updates would seem to indicate progress continues in the growth of the company and its products and services. To have ANY growth in the economic enviroment of the past few months is a very positive event, in my humble opinion.

Also, I believe Mark Smith has started at least one other company - the one I'm thinking of deals with internal pipe inspection technology - since backing out of UGSI operations.

I believe Mark Smith did a great job early on in getting this company off the ground and making solid progress in initial steps to build the company. Mark also hyped (I use that word in a good way).

But Andy has kept a low profile and let the company progress in what I believe is the right way.

Straightshooter55, I pretty much agree with everything you said in this post.

Yes, the average (non-connected) investor knows little about where the company's revenues come from (eg, profits from pipe sales, patents, etc), or its financials, and therefore its "intrinsic value".

We attempt to glean "value" from the projects it wins, and from Andy's periodic reports. I have been accumulating this stock over the last seven to eight years. I probably am holding much more of it than I should.

My reason for buying and holding this stock is based mostly on my view of the need for its technology and services. It is huge. It is beyond huge. Unless PVC pipe use craters for some reason, or another company comes along that can and does seriously challenge UGSI's place in its market, I believe this company (if well managed going forward) can be a breakout company.

I agree that, until the company begins either regulatory reporting or otherwise providing financials to the investing community, investors in this stock are, as you note, "dealing blind".

But I am more than willing to take the risk on this company. But you have posted some good stuff. Let's keep this dialogue going.

Nice volume yesterday (Friday). Some big blocks traded. Thought maybe the price might move up a bit, but maybe we are getting rid of some folks who need to generate some cash and are willing to (in my opinion) give their stock away at .18.

Anyway, I'm encouraged and still believe good days are ahead of us. By the way, the YouTube piece is interesting and shows those who don't know much about such things how the UGSI product works. The fusible aspect of this pipe is money in the bank to pipeline operators.