Yesterday, the share price of Techprecision Corp. (OTC:TPCS) fell through the established support and marked a new six-month bottom, confirming that TPCS is in a strong downtrend during the past 52 weeks. The annual meeting of the shareholders was supposed to take place on Thursday, but no press release has yet come out to inform what decisions have been taken. 
TPCS closed with a 4.80% decline at $1.19 yesterday. During the session the share price fell to a new lowest value for the past six months – $1.15 for a share, while the trading volume of 261,400 shares way above the average. The chart does not suggest that TPCS would reverse and start climbing up in the coming days, unless a really good PR comes out soon.
The company’s latest 8-K filing invited the stockholders to the Annual Meeting of Stockholders to be held on September 15, 2011. Among the issues to be voted on according to the agenda is an increase a reverse stock split of the common stock at a ratio to be determined by the Board of Directors at any time over the next year but no greater than 1-for-2. It looks like some investors did not like the possible outcomes of that meeting as TPCS share price is falling down over three consecutive sessions.
Techprecision Corp. metal fabricated and machined precision components and equipment are used in industries like alternative energy, medical, nuclear, defense and aerospace. According to the company’s last quarter report, in November last year Techprecision formed a wholly foreign owned enterprise named Wuxi Critical Mechanical Components Co., Ltd. to meet growing demand for such products in China. Commercial production of the new enterprise began during the fourth quarter of fiscal 2011 and the first units were shipped at the end of March this year.
As a result TPCS reported a 49% growth in the net sales for the three months ended June 2011, but due to higher selling and administrative expenses the net income decreased. Still, the company has working capital of $12.5 million as of June 30, 2011.
