Alcohol test-maker's stock doubles

December 11, 1992|By Bloomberg Business News

WASHINGTON -- U.S. Alcohol Testing of America Inc.' common shares doubled in value in the past two days as the U.S. Department of Transportation proposed that nearly 7 million transportation workers undergo regular alcohol testing.

U.S. Alcohol Testing makes and markets devices that measure the alcohol content in a person's blood by analyzing breath.

Last March, the Transportation Department approved the company's Alco-Simulator 2000 as a reliable device for measuring alcohol levels and said that data collected by the device can be used as evidence in court.

The department's list of approved devices includes equipment from other manufacturers. A copy of the list wasn't immediately available.

Officers at the Cucamonga, Calif.-based company couldn't be reached for comment.

U.S. Alcohol Testing was the most active issue on the American Stock Exchange. It closed up 37.5 cents, at $2.375, yesterday on Amex volume of 1.37 million shares, more than 11 times its three-month average daily volume of about 119,000 shares. On Wednesday, the stock rose 81.25 cents, to close at $2, on volume of about 1.68 million shares.

The company's preferred shares have also rallied in the past two days. That stock closed up $2.75 yesterday, at $13, on volume of 6,100 shares, after climbing $2.50 Wednesday.

The Transportation Department held a press conference yesterday to discuss the testing plan. Donna Smith, a department policy analyst, said the press was informed about the conference Tuesday.

For the six months that ended Sept. 30, U.S. Alcohol Testing, which also develops and provides drug-testing equipment and services, reported its loss widened to $3.3 million, or 40 cents a share, from $607,016, or 17 cents a share, a year earlier. Revenue rose to $1.6 million, from $386,850.

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