Selling and locking in profits makes sense, and with the way this trades on low volume if you are patient you can sometimes get a good price to get back in.
However I have to to ask what about the SP is hard to justify? I hope you are referring to it's market cap as the actual share price of 27 cents means nothing in itself.
UCM has de-risked its products, and is gaining further approvals to sell into additional markets. Its all a sales exercise now. Do you believe that they will increase sales over the next year? Do you believe that the China deal will come to fruition? If the sales targets are achieved then the P&L profit and cash profits will come, and very soon IMO FY 2017 will be a profit. The current market cap of $30million therefore is pretty easy to justify and even looks small in comparison to the potential.
Reading their report, the increased loss was due to "increase in costs reflected a number of non-recurring expenses for the period including the Thor acquisition ($0.59m), the establishment of the UK entity, the establishment of international corporate auditing and compliance monitoring, and increased management for Budapest. There were also non-recurring costs associated with R&D and regulatory preparation of the new Uscom BP+ and the SpiroSonic series, due for market early in FY 2017 (aprox $0.5m)." Otherwise the loss would be more like $0.8m down from $1.22m.
There are large economies of scale that will come into play once sales increase. Their expenses will not rise in line with sales. Either way, in the end you either believe their reports or you don't. And that is fair enough if you don't there is a lot of garbage out there.
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