Looking at the 2-year-chart I would expect a pullback into the $12-13 area.
Honestly, I hope that there will be a pullback as I have no shares at the moment. I made some nice profits with UFPT in the past but sold out at the beginning of 2010 between $10 and $11. Since then I missed to get in again, I don't exactly know why. Probably I was a little bit annoyed that the company failed to initiate a dividend policy... . But below $13 this would be worth buying for the long term.
Currently I do prefer MOD-PAC (NASDAQ: MPAC) over UFPT. This stock, like UFPT, has a 2-year-upward trend but is currently trading more on the lower range of this channel. However, recently the stock broke through $5 and it seems that it could hit $6 in the near term. PE is below 10. Book value is at $7 and, in contrast to UFPT, the company is buying back shares...
Please don't get me wrong - I like UFPT a lot - but I cannot understand this recent hype! I am watching this stock for years (unfortunately I missed to get in again after I took profits when the stock rose to $12 in early 2010) and it had always a dirt cheap valuation despite the company delivered solid earnings and nice growth.
Why is it exploding now?
Why not one and a half years ago?
Just a bubble?
An acquisition target?
New analyst recommendations ahead?
I do only know that I absolutely prefer MPAC at $5 over UFPT above $20 at the moment... Watch MPAC (book value above $7) - earnings will be released March 1!
Some of these solidly run small caps get swept up into waves of enthusiasm for no discernable reason. I'd like to know what impact generally positive news stories about a company like UFPT has on stock price appreciation in the short term. I saw the same thing happen with DORM a couple months ago. Forbes writes a story and within 2 weeks the stock is up 30%...
I bought UFPT at 18.98 two days ago and sold this morning at 21. I knew it was going back up to 21, just didn't know it would happen in 2 days. I'm out for now. This after buying at $13 and selling at $19 last week. thx
I am not impressed with mpac return on equity, return on assets, and return on investment. ufpt could pull back and if it does I will pop it, however my old post iwas hoping it could go below 10 at the end of 2010. it didn't happen. At least I do have some and I am up 30plus % with it. This is the beauty of the market,