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For
More Information... |
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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
Sherman
Oaks, CA 91403
http://www.microcappress.com
1-800-277-9081 |
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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.
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Universal
Delivery Solutions |
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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.
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 (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.
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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