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Universal Security Instruments Inc. Message Board

  • mmmparsley mmmparsley Sep 21, 2007 10:27 AM Flag

    UUU makes Dick Enberg say "Oh my!"

    Those are the words which keep going through my head as I watch UUU sink to the mid 18's.

    Approaching a 45 million dollar market cap. I can't understand why somebody would be methodically selling at these levels unless they are aware of information not yet publically known.

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    • Universal's Annual report was mailed out on the 18th... I highly doubt there is any ominous, previously unknown information contained therein.

      I guess we'll find out when are paper copies are mailed to us. I think it's comforting to know that only 6 months ago there were buyers aggressively chasing the bid into the low 36's. It appeared somebody was extremely bullish and unrelenting in their buying up into the mid 30's. It was also a period of much higher volume, followed a few months later by confirmation that there were institutions had increased their positions significantly.

      I have watched issues like GIGM, EFUT, and most recently tracked and also profited off of a lagging XFML. Those stocks were all trending processionally down, although way undervalued, and then one unpredictable day they became immediately resurgent to the tune of 20-50% gains in one day when large buyers stepped back in. There are countless other stocks in this position... like my BJCT last year at .83. If I look back and bought at those times where it seemd others were selling so low that they must be in the know, I would have been extremely happy when looking back at my prior sweaty-palmed purchase into such weakness.

      I don't think it's anything to worry about besides sellers becoming nervous of a falling dollar and UUU's reliance on foreign imports and the declining housing market. The US dollar has bottomed IMO this week, and we should see in start to increase as most currency analysts are predicting into the end of the year.

      Beyond that, the housing market HAS to be somewhat benefitted, at least eventually, by the falling interest rates. It simply creates more demand than would otherwise be there. In effect, it's an indirect cost-cutting measure that will allow more buyers finance a home than would be possible before.

      People selling because of UUU's reliance on foriegn imports, and UUU's reliance on the housing market should stay calm as the recent rate drop should be neutral as it pertains to UUU's bottom line earnings.

      Anybody disagree?

    • Was just about to post about this as well. The selling continues without even so much as a bat of the eye. That there is such a large and insistent seller of this stock really puzzles me. This is why I didn't add to my position on the big drop earlier this week. Someone clearly has more selling to do.

      I sincerely doubt that shorts are participating in this stock and that large institutions would so indiscriminately dump this issue. We will see I guess...

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