UniPixel Inc. (NASDAQ:UNXL) Gains More in the Pre-Market

[[tagnumber 0]]UniPixel Inc. (NASDAQ:UNXL) stock has climbed higher before the market opened today. The stock made a big gap up in the last trading session after the company announced a new delivery order for its products. Though no financial details were disclosed, and though UNXL has once failed to deliver under a previous contract, yesterday‘s huge trading activity could be attractive for traders today as well.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]The last session closed at $1.22 for a share of UNXL stock, which is an over 25% gain from the previous close. The trading volume exceeded 3.6 million shares and was the highest for at least the past six months, compared to an average daily volume of around half a million shares. Technically, the rally could continue today as suggested by major technical indicators crossing important levels.[[tagnumber 1]] [[tagnumber 0]]In its last PR from Thursday, UNXL announces the receipt of mass production order for Xtouch sensors coming from a “leading PC manufacturing company” based in Japan. Delivery is supposed to proceed in this and in the first quarter of next year, however, the company does not reveal what revenues it expects from the deal.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 10]][[tagnumber 1]] [[tagnumber 0]]No 8–K filing has been done to confirm that information, and UNXL has a history of not managing to complete some production arrangement, thus it is probably too early to put huge amounts of cash in that stock. In 2012, the company signed a touch sensor Preferred Price and Capacity License Agreement with Dell, which has still not been explicitly terminated, however, UNXL financial reports suggest it is practically not active any more.[[tagnumber 1]] [[tagnumber 0]]After going through the first of the three phases stated in the agreement, in 2014 both companies agreed not to proceed with Phase 2 and Phase 3, Phase 2 being UNXL obligation to deliver production quality samples according to Dell‘s specifications and requirements.[[tagnumber 1]] [[tagnumber 0]]Another issue is UNXL weakening cash position. The company‘s cash reserves dropped from over $20 million in March to around $2 million at the end of the last quarter. During that time, UNXL provided cash by issuing convertible notes, which increases the dilution of the stock.[[tagnumber 1]] [[tagnumber 18]] [[tagnumber 1]]