Unifiber @ 31 cents ( Paper pulp / Indonesia ) 6 comments
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1.Concept stock with execution risk
How many times do people have to learn a lesson? Unifiber surged up from below 20 cents to over 50 cents around the start of the year, for no other reason than its potential in developing a timber concession in Indonesia. The buyers also acknowledged that it was a "concept stock"
As we know with the Nifty Fifty over at the US during the 1960s, concept stocks will fall hardest and quite often unexpectedly. And so it was with Unifiber which collapsed 50% in price in a single day in mid-April. During the ensuring fallout it emerged that there had been shady characters involved in the Unifiber share transactions, such as the formerly convicted Amcol director Kang HH. And people also realised that the business was not a done deal; credit lines had yet to be secured in full for a "bet the company" project.
Now the price recently recovered some of its gait to rise back from 22 to above 30 cents. As before, all bets are off on what price it will hit, but it's strictly for the speculators with a big heart.
(1) United Fiber: A high-risk, speculative punt?
(2) The Kang Hwi Hwa link