I suspect the frequent posters on this board look at UGSI a little differently than most investors do. That is, although it appears to be gaining credibility as a company with useful products and services, and the expertise to apply those products and services, it may still be viewed by others as a small startup with a long way to go before becoming a force in the infrastructure industry. Add to that it is a penny stock and some will just not gain any real interest in the company as an investment.
Like others here, I don't know much about the details of the company's operations, such as the exact source of its revenues. That is a key piece of data for me. I only know that it markets the sale and installation of fusible PVC pipe, and some other products. I don't know anything about the business relationships with pipe manufacturers or project contractors. If the company doesn't own and operate its own pipe manufacturing plant(s), what does pipe cost the company, if it actually buys pipe. Or does it only get a patent fee from pipe manufacturing. Or, more simply, does it not have anything to do with certain PVC pipe manufacturing or manufacturers. That is, installation contractors buy PVC off the rack, and UGSI comes into play in being a party to projects and the use of the company's fusing equipment in the pipe installation, and takes a slice of project profits. Again, where does its revenue streams come from.
Well, the beauty of being a non-reporting company. We assume the company will someday want to list on one of the major exchanges and up the anty on how it is viewed as a company. Sure, some of the insiders of the company will likely make a lot of dough from being listed on a major exchange, but if the company is rolling in the dough at its current operational stage, they may be perfectly happy cashing those checks and being able to operate the company "under the radar" as essentially a private company.
My point is, if good things are in fact happening with UGSI, management and insiders may be in no hurry to cash in. I would hope that the reason management is taking its good ole time in leaping to the big time is because it has more work to do before taking that step. If that is the reason, I am willing to wait a while longer, as I still believe (from what I can glean from available snippets of public information) the company is making continued progress. If so, that's a good thing. I can live with that. As a UGSI stockholder, I just want progress towards becoming more profitable in what it does.
I always focus on company management. What is their experience and backgrounds. From what I can see, current top management has taken M. Smith's vision and developed it into a bona vide company, with real products and services and a growing demand for those assets. We all know the company's products and services are needed on a large scale in the U.S, and no doubt abroad as well. We all also understand that many governments and utilities put infrastructure projects off as long as possible, and particularly in weak economic environments such as we've experienced the last five or so years. But just as we humans must eat (and why well-managed food suppliers are a pretty safe bet), there will come a day of reckoning when those thousands of miles of pipe must be repaired or replaced. From an investment viewpoint, to me those old pipes are "meat on the table". I have no doubt UGSI and other such companies will have their day in the sun. It's just a matter of when.
But do your own DD. I know no more than any of you.
AI
