Admittedly, UCMT was one of the few bad ideas I have shared with OTC Journal members in a long time. At least in the short term, the stock has trade atrociously. This is a very thinly traded stock, and as such is subject to big price swings on very little volume.
Nevertheless, I believe this one will eventually be embraced by microcap investors. It might take a huge win in their portfolio, but this stock is absurdly undervalued and underfollowed.
Their year end audited numbers are due out by the end of July, and I believe they are going to be very good.
Here’s the chart, and you can see just how poorly the stock has done in the summer sell off period:
As you can see, UCMT traded very poorly pretty much out of the gates. Apparently, there was an appetite to sell, and despite the limited volume, the sellers don’t seem too concerned about the price at which they sell.
However, of late the supply seems to have dried up completely. The stock appears to be firming, and could be one heck of a great buy right now.
Thinly traded stocks can give a lot of ground on light volume, but they can make it up as quickly to the upside.
Year end audited numbers are due out by the end of July, and I believe you are going to see a very healthy company.
If you didn’t sell when the stock hit the SSL, it simply means you have decided to become a longer term investor. With this one, a little buying could go a long way.
The bottom appears to be in. I suggest being a buyer.
Comments and questions are welcome.