Unisys Corp (NYSE:UIS)

Here is my summary take on UIS.

Despite 10-15 years of "transformation" from a technology firm to a services firm, UIS is not a growing enterprise. A revolving door series of senior managers, following to a failing group of old-line managers, has succeeded in managing financial re-engineering but failed miserably in creating a growth engine. One can debate the skills/merits of many of these leaders. However, their efforts have to be set against a backdrop of an industry in transition, consolidation and firms of much greater scale: not to mention imploding margins. That game is not over.

ClearPath, the long-time engine of profits is slowly eroding. Management's best case is to maintain the revenue level. Margins will continue to fall as eventually more attractive platforms will become a necessity. Do not forget that, despite many great improvements in its "openness", legacy skills are required to maintain CP. Cloud computing both helps CP and harms it since users really do not care what the platform is. CC allows CP to sustain itself as the hub of a cloud, but the overwhelming alternative offerings will take their toll.

The current solution portfolio is balkanized with no significant drivers to leverage for growth. Outsourcing is increasingly becoming a commodity.

If there is a future quantum leap for UIS, it will be based upon the ability of "someone" to combine the positive cash flow with a roll of the dice to do something different. Maybe something really different. The current solution portfolio is balkanized with no significant drivers to leverage for growth.Visionary leaders are rare in business. It means letting go of one ring before you grasp the next!

4th Q earnings will substantialy beat concensus . Expect earnings of $2.00-2.20 versus concensus estimate of $1.50

Deals working with Apple, Google, NASA, and others make Unisys one to watch.

Unisys remains a profitable business despite fear of slowing growth. However, the recent deal with Apple to explore corporate and government sales gives me hope that growth can improve over 1-3 years time.

CAPS=2/30

Recovery, as bad news on earnings out and better times ahead.

Unisys has been re-invented.... new management, new focused IT portfolio and has significantly cut overhead cost. Unisys has what the IT Market wants.

Re-upped. This stock is one of my top picks.

Good earnings posted, growth strong, new contracts with new customers, determined management

UIS has been a strong player in the tech business for banks, military etc.

It is now making money and controlling expenses

Hoping the new government contact gives this company a boost, although the recent military contact didn't seem to help.

just awarded a huge military contract and several others recently. seems undervalued.

Insider Buying

Unisys has maintained a 'bean-counter' approach to profitability for the past twenty years. They theorize that the path to profitablity is to cut costs. While this can be true, growing revenue must also be part of the equation at some point. Sadly, management has always turned a blind eye to actually selling their product. Management has never really been able to decide what their product is. With a well-tuned marketing strategy, they could have milked the mainframe niche market cash-cow and grown a good herd of clients. Now all they have is a few captive clients that are nervously eyeing some sort of exit strategy that wouldn't cost more than having to purchase the next Unisys hardware or software upgrade.

JUST A LARK

Stock Screen

I current work for them as a lower end tech. To be honest I don't see all of the problems everyone keeps talking about. I can say one thing that whoever MMI is dead wrong. They care just for the short term value of the stock rather than the long. All that "pressure" did was drop the share. If Unisys sells the government business we might as well fold up shop in the next few years.

Not to worried though. To be honest it’s stupid to think its possible. Most service company’s use techs that do multiple jobs. Government, Business and even end users. Unless you can find a way to cut your core skilled people in thirds, it’s not even practical to split up the business.

Unisys does have problems or that management is kind of iffy. However, we have great sales people and good structure.

UIS is a classic value play at this point. Hitting historical lows, small debt load. I like playing these as they hit lows since downside is minimal but a year or two from now you have good chances of seeing a nice recovery where it doubles if not more...that works out to 50+% returns annually. Just wait and see.