1:10 doable but if it starts to slide, you have tighter margin requirements and then you also thin out the shareholder base and restrict share affordability.

Have no inkling if/when a R/S would occur.

The next big hurdle/question is when will the Co announce announe the 1:100 reverse stock split? Shares will then trade at $15 with a more respectible 7 million shares oustanding. We don't become a respectible/meaningful Co until then. Question becomes, do we buy now at $.15 or at about $12 after the reverse split announcement and consolidation?

Good digging..........is that why you are Sewer Dog?
Seriously, don' know if you can assume production based on a 7 day week. Even if you normalize to 5, you are still at $150 mil annually! This also ignores other product sales.

Wallace and Tiernan Chem feed acquisition. See link below

Www.wtchemfeed.com/contact.php

.......and more again today!

Great buying opportunity...........I hope! Nibbled on a little the last two days between .15 and .155. Bid today is .14. Been buying at or near the bid so this is still some overhanging supply out there.

From an industry desalination report. See post #639.

Unfortunately, the Co does not have to disclose as a non-reporting entity. Andy did volunteer the Mobile Pipe transaction but was not required or obligated. Be patient. IMO, we are in good hands and headed in the right direction!

FYI

Siemens sells off W&T. Underground Solutions (UGSI), a California-based supplier of fusible PVC piping, has struck a deal to acquire Siemens’ Vineland, New Jersey-based Wallace & Tiernan® ChemFeed business. The product lines include Wallace & Tiernan’s (W&T) brand liquid and dry chemical feed systems, chemical metering pumps and process controllers, and Stranco® Polyblend® dry and liquid polymer blending systems. W&T’s disinfection product line was not a part of the acquisition, and had been moved to Colorado Springs earlier this year.Joe Millen, the former Siemens executive vice-president who ran W&T after its mid-1990s acquisition by USFilter, will end his retirement to run the company for UGSI.

Andy Seidel, UGSI’s president and CEO (and a former CEO of USFilter) told WDR, “Siemens did not have detailed discussions with us regarding their motivations for selling the ChemFeed assets, but one would have to assume that a portfolio review revealed that the business did not have the earnings or growth prospects that Siemens desires. Once they decided that the business did not fit, they moved swiftly to structure and consummate a deal. We’re happy to have been selected as the buyer and we think that we can move forward as a partner with Siemens as we will continue to share many of the same sales channels in the municipal markets.”

Seidel said that the business will remain in Vineland.

Meanwhile, Siemens has not announced the status of the planned divestiture of its General Filter and Microfloc brand water treatment products. However, Siemens is hosting a late-August meeting for its independent sales representatives in Las Vegas, and some of the reps have already been placing bets that a sale is likely to be announced at the meeting.

<<my broker says there is a large seller (200K ++) at $0.17 all or none....who's going to be the first to grab this "opportunity"?>>

One would think it would/should be easily absorbed. Personally, I have enough for now and looking at other opportunities. I could be easily tempted at lower levels though.

Q2 Shareholder letter.

July 24, 2012

Dear UGSI Shareholder,

Our strong start in 2012 continued through the second quarter as Underground Solutions experienced the second largest bookings quarter in our Company’s history. Bookings of Fusible PVC™ pipe products increased more than 20% versus the same period in 2011. Year over year bookings through the end of June are approximately 18% higher. Our revenue in 2012 is substantially ahead of last year’s first-half following two very busy quarters of project execution. Strong bookings throughout the first half of 2012 have resulted in the highest backlog in Company history, which positions us well for strong third-quarter revenue growth.

While we are very pleased with our strong performance in the first-half of 2012, we remain wary of potential storm clouds on the horizon. During the second quarter, we began seeing an increasing number of project bids exceeding budget expectations. When that happens, awards get delayed as utilities and municipalities re-work their budgets or re-bid the projects or both. Additionally, looking forward to the third quarter we see fewer large projects coming out for bid, though we do expect overall bidding activity to remain strong. Last, but certainly not least, recent municipal bankruptcies could begin to have a chilling effect on municipal bond offerings which could, in turn, reduce the funds available for infrastructure projects. Memories of the precipitous decline in municipal sales in late 2010 resulting from fears of widespread municipal bond defaults remain indelibly impressed on our minds.

The results discussed above exclude any contribution from our Mobile Pipe business, which we acquired in July 2011. One of the key strategic considerations in acquiring Mobile Pipe was to enhance our opportunities in the oil and gas market. That objective certainly has been met to date, as Mobile Pipe had one of the best-ever quarters in its long history with the completion of a large steel pipe lining project for an energy industry customer. As important, Mobile Pipe’s outstanding execution of the project has already resulted in more follow-on business from the same customer for high-temperature well casings used in oil field work. While Mobile Pipe has been a player in the oil and gas industry for much of its history, this recent project and others like it are opening additional opportunities directly with key industry players. We continue to be very satisfied with Mobile Pipe’s performance since the acquisition.

As mentioned in my last letter, Underground Solutions has begun to market a new pipeline product working closely with Lubrizol Corporation. A growing body of research indicates that high density polyethylene pipe degrades and fails prematurely when in contact with chlorinated potable water. This problem is especially acute in areas with warm water, such as the Hawaiian Islands and the southwestern United States (e.g., Las Vegas Valley Water District is currently replacing tens of thousands of failing HDPE water service lines). Lubrizol developed FlowGuard® Bendable composite pipe, which has an aluminum core sandwiched between two layers of CPVC plastic. Working together, Lubrizol and UGSI tested this product for water service line application (the waterline that goes from the water main to the meter) and found it exceptionally well suited for that use. We have secured the exclusive rights to market FlowGuard® Bendable pipe for non-plumbing water services in North America, and we have already sold installations in California, Colorado, Utah, Hawaii, and
Nevada. Since many of the projects on which we offer our Fusible PVC™ pipe products also involve service line replacements, we can market this new and patented technology through our existing direct sales force. With many installations of HDPE service lines coming to the end of their useful life and the continued price volatility of copper, we think we have a winning product offering with FlowGuard® Bendable.

Thanks for your continued support.

Sincerely,
Andy Seidel
Chairman and Chief Executive Officer

This is part of the plan, make the core business profitable and then use the cash flow to grow through acquisition of similar product/technology co's in order to ramp up greater revenue, cash flow and earnings. Sound familiar? Same as what Andy and Heckman did at USF. Soon we reach a size point where we can list the stock and access even more capital via the public equity market. Give Andy time to execute. Patience will be rewarded.

That being said, any idea what annual revenues are currently? Whatever they are, I would now expect them to double within another four years.

Now you have my personal opinions and observations. I have nothing more to base this on than any of you.

Most likely next week, along with details on the latest chemfeed* acquisition from Siemens.

*The Chemtube® PPS Model S5 & S10 positive
displacement peristaltic pump systems are designed
to handle a wide variety of chemicals and liquids.
Simple operation consists of two rotating rollers that
gradually compress an elastomeric tube, forcing
liquid just ahead of each roller. The tube snaps back
to its original shape after the rollers pass, refilling
with liquid for the next discharge revolution. The
pumped liquid only comes in contact with the tube
interior and the end fittings. These pumps eliminate
typical performance issues associated with air-binding
generally seen in hypochlorite installations.

I need an education. With regard to the restricted stock, why do you feel they "HAVE to do a deal?" Is it so the institutions can cash out at higher than current mkt values?

If I remember correctly, the .08 restricted stock was used to obtain badly needed funding approx. 5 years ago. That was seemingly an act of desparation at the time. Then just last year they purchase Mobile Pipe for "cash??" I'm having trouble connecting the dots.

Fred, I'll take a look at HEK. Funny, I am in UGSI because of Andy and his days at U.S. Filter. Owned USF from the very beginning, even before it became USF. Dick Heckman (then a broker) acquired (I should say wrested control of) Amer. Toxxic Control, ousted the Pres/CEO and took over himself. He then changed the name to U.S. Filter and began acquiring water filtering/purification co's for basically stock. He is very sharp and capable. Made a lot of money for shareholders.

Paid cash? Generated from internal ops, the last (2007?) share placement or both? Would be interesting to know if they are indeed cash flow positive at this time. I assume they may finally be. If so, they could start throwing a little cash to the bottom line very shortly.

Fred--I agree and share your optimism. Have a friend in the industry and he feels the retail application, if viable, could be huge, particularly with margin. Believe the mgmt team is finally gaining some traction, definition and momentum in the marketplace.

Mobile Pipe should begin contributing to top and bottom line growth as well. Not sure what the purchase terms were though, or how UGSI financed it.

FWIW (absolutely nothing!), I believe the days of being able to buy below .15/share are OVER. I also think .18-.20 will be the top of the trading range for a few months. Do easily expect to see the range expand to .22-.25 by the end of the year.

April 17, 2012

Dear UGSI Shareholder,
Underground Solutions is off to a great start in 2012. As mentioned in my last letter, we entered the year with a record-high backlog which enabled us to keep our fusion technicians fully engaged during the traditionally slow winter construction season (assisted by very mild winter weather across most of the country). As a result, revenue increased significantly over the same period from a year ago. Just as important, we experienced a fifth straight quarter of strong bookings. Net new bookings increased sequentially from the fourth quarter of 2011 and were up approximately 9% versus last year; which – as you may recall from last year’s first quarter letter – were the best of any prior first quarter bookings in the Company’s history. Sales activity was high across the country, and bid activity looks to remain strong as we enter the traditionally busy spring and summer construction seasons. Additionally, our Canadian licensee continues to report outstanding sales of Fusible PVC™ pipe, with increasing penetration in the western provinces.
The results discussed above exclude any contribution from our Mobile Pipe business, acquired mid-year 2011. Mobile Pipe performed in line with expectations during the quarter, as we continue to have success cross-selling Mobile’s services in conjunction with sales of our Fusible PVC™ products. During the first quarter, we also reconfigured portions of our Adelanto, California plant to increase our production capacity. The additional capacity came just in time, as Mobile Pipe landed one of its largest-ever industrial projects late in the first quarter. Looking ahead, oil drilling activity remains strong in California and Mobile Pipe is working to enhance its relationships with leading oil and gas developers in the state.
For those of you who have followed UGSI’s development, you know that our “power alley” has been the trenchless pipe rehabilitation and installation markets. Recognizing, however, that the majority of new and replacement pipelines are still installed via the traditional open-cut – or “dig-and-bury” – installation mode, we have made a concerted effort to gain some share of this opportunity. I am pleased to report that we are experiencing increasing success in this arena due to the restrained nature of our proprietary fused joint, with 23 open-cut projects sold in the last two quarters alone. In fact, over 100 miles of Fusible PVC™ pipe have now been installed in open-cut applications – opening a new and very large market for our products.
We expect to announce a new product offering for service lines (the water line that runs from the water main in the street to the individual home water meter at the curb) in the second quarter. We’ve been working with a leading advanced materials supplier for a few years to develop a better product than copper. Final arrangements are being made for a product launch in the coming months. This, too, will create an entirely new market opportunity for UGSI; providing even more cross-selling opportunities for our industry-leading direct sales force.
Thanks for your continued support.
Sincerely,
Andy Seidel
Chairman and Chief Executive Officer

I certainly can't argue with you Fred although I will slightly narrow your band (.20 and then down to .15) SewerDog will surely want to argue with you and add his meaningless dribble.

What difference does it make? Get a grip!

Appears to be an overhang of supply right now. Insider sale(s) seems to be a logical explanation. Still have my doubts as to whether you will see .13, or even .14 for that matter. Like you though, I'm adding to my position should it get down there.

UGSI

Company seems to be gaining traction and picking up some momentum. If that is indeed the case, why isn't the stock going higher? Sure it has gone from .12 last qtr to the present .16 bid, but it has also declined from double the current price a couple years ago. My guess is they have had a hard time controlling overhead as they have attempted to increase their mkt penetration and presence. Hopefully, with an economic turnaround (Washington D.C. permitting) some sales will begin falling to the bottom line. Andy will get it done.

UGSI shares rise to year’s high on record 2011

Published 2nd February 2012 Global Water Intelligence

Shares in fusible pipe specialist Underground Solutions Inc. rose to a 52-week high on news that the company enjoyed a record year for booked business in 2011.

“Overall, 2011 bookings increased by more than 40% over 2010,” CEO Andy Seidel told investors in his annual shareholder letter. While year-on-year revenue growth was more measured, a record backlog should prevent a repeat of last year’s scenario, where UGSI’s fusion technicians were underutilised throughout the first quarter.

Seidel expects to see continued growth in 2012 from realignment work at federal bases, orders from investor-owned utilities, and repeat business from municipal customers.

He also expects shale gas water conveyance to provide a meaningful growth platform going forward. Given Seidel’s past links with Aqua America – which is making a push into the shale gas water supply market – and with Heckmann Corp., which owns 7% of UGSI, 2012 could prove to be another bumper year.

Agree with Fredugsi. Stock will be lower in a week. Maybe not .14 but .15 certainly. The key here now is to maintain momentum with continual higher lows and higher highs in the stock price.

I feel Andy has done a remarkable job here lately managing the business in a tough economic environment. Would love to know with some certainty if they are generating cash flow or, are even profitable.

Does anyone have a feel for what sales volume will be (was) for 2011?

Price performance certainly a disappointment, especially with all the "stimulus" money floating around. Believe we are fine as long as Andy is around.

How much did UGSI pay for Mobile Pipe Lining? Did we issue stock or take on more debt? How much in additional annual revenues do they bring to the table?

Appears it is a niche business and quite possibly, a perfect fit for the company. Should be some pretty nice margins assciated with it once it is fully integrated.

October 14, 2011

Dear UGSI Shareholder,
Underground Solutions has enjoyed a very robust 2011, setting a new record for municipal bookings for the first three quarters. Bookings are running about 30% above last year for the same period, with 125 projects involving Fusible PVC™ pipe booked in the third quarter alone. In fact, by the end of the third quarter we had surpassed total bookings for all of 2010. The outlook for the fourth quarter looks to continue that pace. Sales have been strong across all regions, with significant gains in open-cut and pipe-bursting applications. Revenue has also rebounded as bookings have accelerated. As reported in my last letter, first-half revenue was down as a result of low backlog entering 2011. During the third quarter, much of that shortfall was made up as quarter-over-quarter revenue increased by almost 40%. All of these results exclude any contribution from our recently completed acquisition, which is discussed below.
While the business in the continental United States continues to be robust, business in the Pacific Rim is surging as well. UGSI will complete major projects in Guam, Oahu, and Maui during the fourth quarter – with outstanding prospects for continued growth in that region in 2012. Additionally, our New Zealand licensee is gaining momentum and we expect further licensing activity around the Pacific Rim in 2012. In fact, the Birkdale, New Zealand project completed earlier this year is the subject of an outstanding video featuring our Fusible PVC™ pipe being installed in the largest directional drill project ever completed in New Zealand using plastic pipe: http://fusiblepvc.blogspot.com/2011/02/installation-videos.html.
Our recent acquisition, Mobile Pipe Linings and Coatings (providing coatings and linings for steel and ductile iron pipe), reported strong results for the quarter with annualized sales running at about 20% above last year’s pace. As mentioned in my last letter, the purchase of Mobile Pipe was completed at the end of the second quarter and provides Underground Solutions with exposure to the rehabilitation of steel and ductile iron pipelines in both water and natural gas markets – about 50/50 in shipments. Steel pipelines continue to be widely used in many West Coast utilities, such as Los Angeles Department of Water & Power, East Bay Municipal Utility District, and Metropolitan Water District. The Underground Solutions sales team will now be able to offer owners and engineers value-added coatings and linings that improve corrosion protection, as well as lifetime economics.
Consistent with our business philosophy, Mobile Pipe provides technology and value-added services to the pipeline business without the large capital commitment that comes with commodity pipe production. To learn more about our new business, I encourage you to visit Mobile Pipe’s website at http://www.mobilepipewrappers.com/index.php. Additionally, a short You-Tube video depicting gas pipe being processed at our plant using a heat-formed, tape-wrap coating is also available for viewing at

Have yet to see or receive the Q3 letter to shareholders. Anyone else? Certainly don't anticipate any good news in the way of backlog or orders based on the performance of INSU and others in the space.

Crossed my mind but why would shorts start covering when UGSI and general mkt are in downtrends?

Stock is up approx 10% today on a volume of almost 100k shares. Any news/rumors or is someone buying a block?

Two different Co's IMO

Not Fred, sorry. Don't have $1M shares either. You never did answer my questions so what is your value?

Fred--pls fax me the last six mos of updates. Pls email first (louky220@yahoo.com) and I will provide my fax #. Thx.

Sewer--does it really matter (or affect you) who owns what # of shares? You may be right about a tape error but I feel some buyer, for whatever reason, aggressively wanted shares at the end of the day. They kept buying at the bid in a thin, holiday trading day. Not a smart move in my opinion unless you have lots of idle cash. My guess is it still trades in the .20-.22 range tomorrow (Mon). If it trades above that and again on heavier than normal volume, I sill have to conclude there is a reason.

"Should" be selling for over $1 now based on 1) the management team in place and 2)the industry and all the Fed $'s out there being spent on infrastrucre improvements. (Doesn't seem like USGI is connected or big enough to procure these Gov't contracts.

The big negative has been the lack of capital to expand. Any funds raised have been at less than favorable terms, and with significant dilution to existing shareholders. Banks not lending except to the strongest of borrowers so Andy has a tough job in front of him. You can't get the stock up without cash flow and he can't get the cash flow with access to capital.

Last two weeks have seen steady accumulation..........increasing volume and stock price (from about .145 to .18 prior to yesterday). Volume had been steady throughout the trading days, with sellers taking advantage of the increased bid sizes. Didn't see a lot of buying at the "ask", until yesterday.

Something was leaked and about to be announced (not that they have to announce as a non-reporting entity). My guess/feeling is either HEK or INSU may have an interest in the Co.