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Tuesday, May 31, 2005

Unifiber @ 31 cents ( Paper pulp / Indonesia ) 6 comments



(P.S: Sorry for any disturbances the advertisements above may have caused you)

Main issues

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.

References:
(1) United Fiber: A high-risk, speculative punt?
(2) The Kang Hwi Hwa link

 

 

6 Comments:

Anonymous Chartist said...

You need a leap of faith to buy this stock.

5/31/2005 8:17 PM  
Anonymous SuperHotStockTrader! said...

SOmetimes ignorant people should just shut up and don't act smart. Unifiber is 40 cents now those who listened to you missed out on a 30+% gain.

I suggest you keep your eyes open. Don't be a fool. Unifiber will hit 60cents.

If you don't understand what is going on nobody will call you stupid if you keep quiet!

6/23/2005 6:42 PM  
Blogger DanielXX said...

Hi superhottrader,
Hindsight is 20/20. While I cannot foretell how the price will perform in the short-term, an examination of the company behind the stock might suggest its performance in the medium to long term; that is the idea behind my "negative" blogs which are posted here.

6/23/2005 7:05 PM  
Blogger ecgwee said...

hi daniel
Your analysis is in depth and interesting. What about this year. any change????
Think unifiber this year looks attractive. what say u?

4/22/2007 2:43 AM  
Blogger DanielXX said...

Dear ecgwee,
A lot remains to be seen and without the corroboration of some audited financial statements it is extremely difficult to judge unless you are an insider. Hence I would avoid it .... there're other high-risk high-return stocks which are better choices.

4/24/2007 8:14 AM  
Anonymous Anonymous said...

I came to this blog by chance. I would be buying Unifiber at $0.23

5/04/2008 4:14 PM  

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