WPCS International Incorporated (NASDAQ:WPCS) Can Plunge Back Down This Week

[[tagnumber 0]]Yesterday WPCS International Incorporated (NASDAQ:WPCS) gave a strong signal for a negative correction this week as the stock closed the market with a significant drop down. The company has issued a large number of new shares in the last weeks and if it decides to register them the stock price can even fall out of the trading range.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]WPCS closed the last trading session with a 7.14% decline at $1.43 for a share after it could not break up higher than the previous session high. Technical indicators are just starting to reverse downwards, thus it looks like the stock will return back to the longterm downtrend. Also, as the trading range is getting wider, the stock price should be more volatile.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]On Monday, WPCS filed with the SEC a notification that will not be able to submits its quarterly report for the period ending July 31, 2015 on time. According to the company, the delay is due to the inability to compile all the necessary information, though for traders that could be good news as an unknown date for the filing of the report could make the stock attractive for trading.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 12]][[tagnumber 1]] [[tagnumber 0]]Although WPCS current market cap seems already very low, it looks like the stock could have even more downside potential. Last week, an 8K said the companys number of outstanding shares of common stocks has grown by more than 5% in about a month. So far, nearly 1.8 million shares have been issued as a result of the conversion of convertible preferred stock, yet these shares are not yet registered for trading.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]WPCS will keep diluting its shareholders not only because it obviously needs outside capital for its unprofitable operations. In August, it signed a 12month contract with an investment bank which agreed to provide some unspecified services for a monthly fee of $7,500. Interestingly, that fee is payable in shares of common stock, the first payment resulting already in 4,838 new shares issued in the middle of August.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]

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