Universal Detection Technology (OTC:UNDT) The Next Squeeze Jump Is Coming?
09 Sep 2010

Universal Detection Technology (OTC:UNDT) stock has not been promoted since the end of April this year and since July one could think it is not reacting to the company’s press releases for purchase orders any more. Yesterday’s strong reaction was also not so much to the press release, than to the recent intensive shorting.

Today’s trading session is likely to bring another consequent price and volume jumps, as early in the morning the squeeze trigger report for UNDT came out. It announced a squeeze trigger price of $0.0044 as 105 million shares shorted at $0.016 have begun squeezing and another 201 million will do this above $0.002. Yesterday UNDT closed at $0.0016, or 129% up from the previous close.

The volume was spectacular: 586 million shares were traded, a value that had not been seen over the past three years. As evident on the chart, nobody seems to be attempting to pump UNDT stock since April this year, if we do not count the constantly going on purchase order press releases, which however do not impress experienced traders any more.

The next one of that kind was published yesterday and it concerned this time an order for the company’s 5-agent biological detection equipment from a fully owned subsidiary of Boeing Defense. In the mean time, the financial condition of the company is still disastrous. The only $1,000 in revenues reported for the quarter ended this June makes all the announced purchase orders highly suspicious. With the $87,000 in current assets there is also no way to cover the $4.2 million in current liabilities.

For the shorters, however, this is the slightest problem and they again managed to short 158 million shares yesterday.

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