re: ((((( hot stock to rocket ))))) read! Careful don't get too...

re: ((((( hot stock to rocket ))))) read! Careful don't get too carried away.

As a stock I have been watching for some time ... just a couple of points.

First I would like to say it was excellent value down below 38 cents all the way down to its low.

Up here and higher ... I would expect it to go somewhat higher from here but not to anywhere near the the NTA quoted by the company.

Why ???

Hmmm well company run out of Malaysia ... company talking up its prospects for the future. Fair enough ....
company NTA before the current report was around 99 cents.

Some history on the company ... smacked with the asian finacial crisis .. and till now has not recovered ....
traded for a long time at around 30/40 % of the NTA.
During the financial crisis in Asia one really has to remember actions of Malaysia ... they basically told the IMF to get stuffed ... they then froze all foreign owned shares on the Malaysian index and held the shareholders to ransom !!! This has little to do with UOS ... but it is one reason why one should not get too carried away with it !!!

Now that being said the share price is set to go up maybe even $1.00 ... it is very very thin and illiquid.
Just be aware that there was only one or two people bidding for this stock a few months ago.

On a more recent concern regarding the current accounts released by the company is the rise in the implied NTA quoted by the company. Now there has been no release of real information between the release of the mid year accounts and the current set ...yet the NTA per share has more than doubled !!! How can you explain this ??? I certainly can't looking at the 2002 year end accounts the non current assets of property were valued at around 51.6 mio ... then the last release before the current set the numbers were roughly the same .... now for the latest set the value of the non current assets property are valued at 120.8 million ....
there was no announcement to the market explaining this rise prior to the accounts. In the accounts the mentions we see are the NTA rise from 99 cents to 213 per share. In the notes we see this is from an asset revaluation increasing the value of their portfolio of around 100 % .... now not sure how to take this but since I tend to err on the side of caution thats the way I shall lean until these numbers have been there for some time ... years in this case .... since I can safely presume the value of properties in Malaysia did not double in the last 6 months I can only reach two conclusions from this increase .... not sure which is valid.

Going on the new NTA and the way this comapny sat for a long time in the 35/40% of NTA band ... may be a time to sell if it goes higher ... especially if you are one like me who has been watching/holding for a while.
Time may change this if the new NTA and numbers are correct ... maybe we see it rise higher than 50% of NTA but for me when a company releases a surpise even a good one I have found it better to be even more cautious with the future.

Best of luck