I Still Believe WPCS International (WPCS) will go much higher. $WPCS is a STRONG BUY (TRADE ONLY)

A Major Firm Has Taken a Significant Stake We have learned that Blackrock (NYSE:BLK) has taken up a position in the company. In a filing, we learned that Blackrock has a 5.3 percent stake in the company. This tells me they could be looking to acquire more shares and get someone in on the board. Possibly, it is looking to make a huge profit off of a swing trade as I have suggested. Right now, the 5.3 percent passive stake is an interesting data point the supports the bull thesis. I suspect we will hear more about this in the coming months. An Epic Short Squeeze As of January 15, there were over 800,000 shares sold short. That represents a massive percentage of the company’s total (albeit growing) float. On February 3, 2014 we got a tasted of what happens when the shorts are under pressure (figure 1). Figure 1. Price Action in WPCS International in the Last Five Days

As you can see, as shares began to rise, it created momentum of buying and much of this may have been short covering. It was up 5 then 10 then 15 percent. A few minutes later is was surpassing 20 percent, leveling off at about 25 percent appreciation. Once the momentum plateaued in WPCS, I am willing to bet more short positions were reinitiated. These types of stocks are vulnerable to incredible short squeeze rallies. Once the first piece of positive news is released, don’t be surprised to see the stock move 30 percent, 40 percent, and even 50 percent in a single session. I Missed the Move I had an open buy order at $1.35. The stock didn’t get there and I missed this huge rally. That said, I hope it comes back down so I can try and catch the next leg up. The shorts will likely pressure this stock, so I will look to enter at approximately $1.55. Sometimes you just have to say, “I missed this one.” However, now the company has a large position shareholder in Blackrock and is setting up for another epic short squeeze. Don’t get caught short this stock.