Universal Detection Technology (fka UNDT)

[21ZNA9]

Universal Detection Technology (OTC:UNDT) Still Offering Only Overwhelming Debts and Paid Promotions
By Violeta Slavtchevska
Date: Feb 14, 2011
Investors did not take seriously Universal Detection Technology (OTC:UNDT, UNDT message board) plans to save U.S. restaurants from Al-Qaeda's poison in December, like all the other PR's of the company. Today UNDT stock expects again a day of promotions, but the chance to eliminate at least one of the zeros in its share price does not seem so huge.4UNDT.png

On Friday, UNDT closed the market at $0.0005 for a share on a trading volume of 25.73 million shares. Hardly noticed on the stock chart, the shares gained 25% in value, and will maybe try to add even more today.
Yesterday, new promotional e-mails have been sent out, promoter's compensation of $7.500 being however moderate for the needed efforts to raise UNDT share price up. It has been namely steadily going down over the past year.

The latest news from Universal Detection Technology was that it has provided its detection equipment to the food service and hospitality industry in response to Al-Qaeda's threat to poison food with ricin toxin. UNDT detection equipment has not met a lot of market acceptance so far. However, interestingly enough, despite the shockingly low share price and the $953,891 market cap of the company (resulting from 1.9 Billion shares outstanding), UNDT stock still appears highly overvalued by the market.Universal_Detection_Technology.jpg

It is trading at an over 100 multiple relative the company's sales, which amounted a total of $5,000 for the first nine months of last year. The fact that the company is gradually cutting down the losses made each quarter is also not very encouraging that the shareholders could get a return on their investment soon, if ever, considering that even the lenders have hard times getting their money back without engaging in costly lawsuits.

Currently, for a total of almost $4.5 million in liabilities, all of which current, UNDT had to offer at the end of last September around $45,000 in total assets, $15,800 of which current. Total accumulated loss almost hits $45 million, and only in the first nine months of 2010 the company issued 420 million new shares of common stock to settle some of its outstanding debts. Average conversion price has been $0.002, and if the debts keep getting settled for stock at market rate, shareholders could face even more uncontrollable dilution.

http://www.hotstocked.com/article/3937/universal-detection-technology-otc-undt-still.html