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A description of the content follows : We felt the need to devote some time today to the key technical (chart) aspects we see for UDS Group (UDSG), Zupintra (ZUPC) and Spicy Pickle (SPKL). Though we frequently talk about underlying fundamentals as a starting point for our profiled companies, it would be unwise to ignore their respective charts.

 
 
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Hot Stocks

The Micro Cap Press - Discover the Power of Early Stage Growth
Friday, October 5, 2007 @ 1:29 pm PDT Volume I : Issue 20
For More Information...
For more information regarding Universal Delivery Solutions, Zupintra, or Spicy Pickle as an investment opportunity, be sure to review the entire research report in a printable PDF format by clicking the appropriate link below:

UDS Group Inc. 
Zupintra Corporation 
Spicy Pickle

Or, to discuss any of these equities, contact: 

The Micro Cap Press 
15233 Ventura Blvd. 
Suite #310 
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http://www.microcappress.com
1-800-277-9081

Chart Check-Ins 

Though we frequently talk about underlying fundamentals as a starting point for our profiled companies, it would be unwise to ignore their respective charts. After all, the price change of the stock is the only way an investor is going to make any money as a shareholder; financial performance at the corporate level is irrelevant if the stock never reflects it.

With that in mind, we felt the need to devote some time today to the key technical (chart) aspects we see for UDS Group, Zupintra, and Spicy Pickle. 
 

Universal Delivery Solutions

Since our initial profile launch on June 14th, Universal Delivery Solutions (UDSG.PK) has been mostly in a sideways range between seven and nine cents. We view this as a consolidation period. 'Consolidation' is just a period of time during which buyers and sellers have met an equilibrium, and each side is simply waiting to see what happens next before making a move. Consolidation periods are common following highly-volatile moves - like the ones we saw in the second calendar quarter of the year. We do expect volatility to pick up again eventually, which can be a good thing...as we saw only a few months ago. 

In fact, said volatility may be closer than you think. While the stock has been treading water around 8 cents, the 200 day moving average line has had a chance to catch up with Q2's big gains. In late September, and for the first time in months, UDSG shares touched their 200 day moving average line. This may have uncorked enough overbought pressure to let the stock loose for another bullish leg. After all, shares immediately found support there and started to inch higher afterwards. 
We also don't feel it was a coincidence that volume was so high on the same day the 200 day line was re-met. Many reversal days use high volume as the pivot point. Unusually high volume may well mean all the potential sellers at the time went ahead and sold, and/or all the potential buyers finally started to pour dollars in. 

Of course, we can also see the short-term averages (like the 20 day and 50 day lines) are back in place as a ceiling again. If those lines are breached with a good push from UDSG - say to 8.5 cents or higher - it could end up sparking a rally. That's our most immediate and most meaningful chart event we're waiting for here. 
 

Spicy Pickle

The newest addition to our family of profiled companies is Spicy Pickle (OTCBB: SPKL). And so far, it's off to a great start. How great? Two Fridays ago (the day before we started our coverage) it closed at $0.69 cents. Today it closed at $0.98...a 42% move in two weeks. Some might say it's too much, too fast. And in some case we'd be inclined to agree. But, like most things - it's all relative. Here's what we see... 

First, if there's any stock out there that deserves a break, we feel SPKL is it. In fact it's taken a small one in the latter part of this week, which may well be a sufficient rest period to jump-start the uptrend again. We're keying in entirely on the Fibonacci retracement levels with that point of view. 

What are Fibonacci lines? In simple terms, it's a mathematical likelihood. Retracements and extensions of 38.2% and 61.8% tend to reflect naturally-reoccurring patterns. Those repeating patterns are even believed to appear on a stock chart, and based on our own experience, there can be something significant to the idea. 

Now take a look at the chart, and specifically, the horizontal blue lines. We've plotted these Fibonacci lines as liberally as we could...from the very first lows of 48 cents once SPKL started trading publicly, to last Friday's peak of $1.24. The first natural retracement level of 38.2% (of the total span) lies at the 95 cent mark. Today's low of 96 cents and Tuesday's low of 92 cents are awfully close to the retracement level. If it's a coincidence, it's a pretty big one.

The idea is simple - we feel SPKL is likely to find support here. Other interpretations could be that this may be a nice entry or re-entry point. If support isn't found here - which we may not know for sure until next week - then we'll start to watch the 61.8% retracement line at 77 cents. That's a discussion for later though. 

Though far from perfect, Fibonacci lines can provide a nice framework for spotting potential reversal points. For obvious reasons, we'll be watching this chart closely. 
 

Zupintra Corporation

Zupintra Corporation (OTCBB: ZUPC) had a challenging Q3 in terms of its stock. The company experienced delays in obtaining their letters of credit needed to start doing business at anticipated levels, and the market reflected their opinion on the matter - ZUPC moved lower. 

Then only a few days ago, this chart started stirring again - an irony really, considering some investors had all but given up on the stock. On Friday of last week, we saw the highest-volume, single-day buying spree we'd seen since April. Shares gained 3 cents (150%) that day. No news, no announcement...just a lot of buyers out of nowhere. The technical impact was simple enough - ZUPC closed above its 20 day moving average line for the first time in months. It also closed above a resistance line, again for the first time in months. 

There's still no official word from the company about why the sudden interest, but with volume like that, our research staff doesn't consider it a random occurrence. Possibilities include a major institutional buy-in, or perhaps there was a news leak of some sort. The reason doesn't entirely matter - whatever it was, somebody became bullish (with dollars in tow) in a hurry. Though we didn't see immediate upside follow-through, we've still seen ZUPC hold its ground this week.

Needless to say, we feel this merits close attention. We expect any news behind the big move to eventually be publicized. It's mostly just a matter of when. 

In that light, we do feel compelled to say the 'efficient market' is not nearly as efficient as it's assumed to be - particularly in the small and micro cap world. If there really is more to the story like we think there is, the majority of the market truly might not know it yet ...something that would rarely happen with a large cap name. So, for speculators who can make decisions on faith without proof (and understand all the risk), ZUPC may end up being a huge bargain at four cents. 
 

The Last Word 

Not that it's without its downsides, but technical analysis (mostly entry and exit timing) can mean the difference between a great trade, and a mediocre one. In the end, fundamentals do indeed drive the stock's price. In the interim, the chart (the price at which you sell or buy a stock) presents investors with all sorts of undervalued entry windows, and overvalued exit windows. As always, we intend to watch the charts as closely as we watch the underlying company's results.

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The Micro Cap Press, its website and email newsletter (hereafter, cumulatively referred to as "MCP"), is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. MCP is owned and operated by Pacific Shores Investments, LLC ("PSI"). All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, PSI accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of MCP. To the degrees enumerated herein, MCP should not be regarded as an independent publication.

Click Here or go to http://www.microcappress.com/disclosure/ to view our compensation on every company we have ever covered, or visit the following web address: http://www.microcappress.com/disclosure/reports_disclosure.php

The Managing Member of Pacific Shores Investments, LLC purchased 200,000 shares of Spicy Pickle at $.25 per share. This purchase was made in a Spicy Pickle private offering back in November of 2006. The Managing Member of Pacific Shores Investments, LLC has also purchased 50,000 shares of Spicy Pickle in the open market with an average cost basis of $.55 per share. Additionally, Pacific Shores Investments, LLC has been paid a fee of $30,000 cash and 250,000 shares of newly issued restricted stock by Spicy Pickle Franchising, Inc. for coverage of the Company.

Pacific Shores Investments, LLC has been paid a fee of $50,000 cash and 1.5 million shares of newly issued restricted stock by Universal Delivery Group, Inc. for coverage of the Company. Additionally, the Managing Member of Pacific Shores Investments, LLC has purchased 130,000 shares of Universal Delivery Group, Inc. in the open market with an average cost basis of .08 cents per share.

Pacific Shores Investments, LLC has been paid a fee of $30,000 cash and 800,000 shares of newly issued restricted stock by Zupintra Corporation, Inc. for coverage of the Company. Additionally, a managing member of Pacific Shores Investments, LLC has purchased 50,000 shares of PHDT in the open market with a cost basis of $.23 cents per share.

From time to time PSI sells shares received as compensation for coverage of client companies. Shares received are sold in the open market. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, PSI does not view the sale of the shares as contradictory to any opinions delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.

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