U.S. Starcom (USTA) released more news today of its ongoing expansion and business growth. The company had formerly announced $0.02 per share in earnings for the first quarter of 2007, which followed $0.02 per share in earnings for the 4th quarter of 2006. 2nd quarter earnings will reportedly be announced next week and USTA is on track to earn $0.06 to $0.08 per share for 2007. It currently trades at $0.21, which is about a multiple of 3 times CURRENT earnings. That's significantly undervalued in my opinion.
Company trades on the pinks right now and is not well known but it's conducting its two year audit and filing a Form 10 to move on to the OTC:BB in these coming months.
I think USTA will be a real winner. Even at today's earnings the stock should be trading much higher -- closer to the $0.80 range (assuming a 10 times multiple of earnings) and that's without taking into account all of the expansion it is undergoing.
U.S. Starcom's Bell Latino Division Closes Acquisition of Two Out ets in Florida Beginning of 200 Unit National Expansion
PERTH AMBOY, NJ -- (MARKET WIRE) -- 08/08/07 -- U.S. Starcom (PINKSHEETS: USTA) announced today that its wholly owned subsidiary, Bell Latino, has closed on the purchase of two existing money wiring locations, bringing the total to four in the Miami area. Both locations are to begin contributing revenues for the company in the 3rd quarter, along with the five existing outlets in the Tri-State area, bringing the total to nine. The purchase was done with a combination of cash and notes, and was executed for a price of approximately one times annual net income.
"This transaction is just the beginning of our national expansion strategy!" said John DiDomenico, President of U.S. Starcom. "Our goal is to build or acquire numerous Bell Latino locations over the next 36-48 months, while capturing a meaningful share of the money remitted annually between the U.S. and Mexico. We are also investigating adding check cashing services to our branches in Florida. With the significant volume of business potentially going through our outlets each year, the cross-selling opportunities in telecom, music, pre-paid, retail and ancillary services have the potential to increase our profits significantly above the current levels."
About U.S. Starcom
The company is a leader in providing money remittance services and in providing value added services to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, U.S. Starcom continues its rapid expansion into the distribution of alternative communication products and services, including music, media, international long distance, prepaid services, wireless dial around applications, stored value services, remittances, money debit cards, and internet service enhancements. U.S. Starcom provides access to the latest entertainment offerings from the recording industry through strategic alliances and joint distribution campaigns. The company operates through its three independent subsidiaries, Sky Distribution, Mundetel, and Bell Latino.
Contact: Jack Lennon U.S. Starcom 508-362-4420
Posts: 4 | Registered: Jul 2007
| IP: Logged |