Martin Tsvetkov

Universal Detection Technology (OTC:UNDT): A Storm in a Teacup

by Martin Tsvetkov June 22, 2011
UNDT_chart.pngYesterday, Universal Detection Technology (OTC:UNDT) delivered the goods, leaving investors wanting for more. At least, this would be everybody's first impression had UNDT not been a 0001 stock.

Nevertheless, UNDT stock added 4 pips to its value during the latest trading session, ultimately soaring 75%. Thus, it closed the session at $0.0007 per share, which ironically enough, is a five-week high for the company. Based on this fact alone, UNDT's performance can be considered as a fairly stable one.

In addition thereto, the price surge was not the only spectacular move by UNDT that day. It also experienced a giant volume spike with 252 million shares of UNDT stock changing hands. However, while this is the highest score among the company's recent figures, it is nowhere near the 409 million shifted on Apr. 14.

Another circumstance that adds up to UNDT's positive run is the lack of promotions. Until recently, UNDT used to be one of the most heavily promoted penny stocks. Moreover, there was a certain period, especially in March and April, when paid alerts in support of UNDT stock surfaced every single day. Back then, the advertising wave was strong enough to send UNDT up in the sub-penny stock tier. However, UNDT's stint there was eventually brought to an abrupt end as soon as all promotions faded away.

UNDT_logo.jpgUniversal Detection Technology envisages itself as a potential big winner in the fight against anthrax. The company pretends to have developed what it called 'a first of its kind real-time continuous detection device'. The latter is aimed at detecting abnormal levels of bacterial spores in the air, which is generally regarded as a forerunner of an anthrax attack. In this respect, UNDT has already acquired a license by the Jet Propulsion Laboratory which is run by NASA.

UNDT concluded Q1 of 2011 with the following finacial results:

  • $947 in cash vs $987 in Q4 2010;
  • working capital deficit of $4.58 million, which has remained unchanged for the last two quarter;
  • net loss in excess of $704K as compared to $586K incurred by Dec. 31, 2010.

Comments 1

1. Guest
July 01, 2012, 12:25PM

Quotes This stock is a piece of crap. Greedy CEO. R/S means this stock is going under like other penny stocks. They never learn.

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