Union Equity (OTCPK:UNQT) is a truck leasing business which operates in 48 states. It is a small but solid company which has done very well over the fiscal year of 2011 according to its financial statements. Its marketing strategy consists of specifically targeting the group of owner operators of trucks as the potential buyers of its products.
Union Equity is a remarkable company because of its apparent profitability over the last year. It has increased revenues by 83% while its share price tumbled from $1.90 per share to just $0.0002 per share before recovering to its current price. It currently trades on the Pink sheets at just $0.0004 per share. According to its financials, its revenues have risen from $337,252 in fiscal year 2010 to $638,186 in fiscal year 2011. UNQT reported $32116 as its net income for the 4th quarter of 2011 which contrasts with ($123,193) for the 4th quarter of 2010. Total net income for 2011 was reported as $132,244.
The company has also announced that it is going to refocus its strategy within the $600 billion trucking industry. It is seeking to increase its cash sources by talking to several potential investors. Furthermore, it is set to expand its trucking fleet to take advantage of the huge market potential the rapidly recovering trucking industry represents. They have a great business model in place to become more profitable and one which also allows for rapid expansion as the company has stated they intend to do.
In concordance with this, as the US economy continues to recover during the coming years, trucking will become a much more valuable resource. The growth of trading between the states and the recovery of exports, which are facilitated by trucking, will drive this growth and expansion in the economy. Therefore, the service UNQT provides is invaluable to the continued growth of the economy.
UNQT has also had record numbers of shares traded in recent weeks. On Tuesday alone, 300 million shares traded hands. Furthermore, between Monday and Wednesday in excess of 700 million shares were traded. This volume is a signal and according to the a candlestick analysis of the data UNQT can only rise from here.
Consequently, I believe UNQT is a once in a lifetime opportunity.
Disclosure: I am long OTCPK:UNQT.