noitced received, page-30

dcata you asked:

"do you therefore think the market should be re-rating the SP upwards today, based on 2011, if focusing on 2011 is a non issue according to you ?....pls advise ??"

I most certainly do believe it should be re-rated up. What was the startup date? Late 2009? Call it 2010. So its one year later and the delay is captured in the NPV of the cashflows. 2011 is an issue (markets dont like suprises), but it is dwarfed by the size of the disparity between the market valuation of UMC and the companies own valuation of a small part of it.

The market is valuing UMC between 10 and 20 times below the NPV estimate of the company. That is a huge disparity even in todays times. Wasnt the recent broker target $2 per share, yielding an undiluted market cap of around $270m? It looks conservative to me based on todays figures that exceed $1b and top out at around $2.4b. Cut UMC's estimates in half and the market still has UMC undervalued.

Happy to stick my head on a chopping block re this. UMC will rise and especially so once brokers advise their clients. How far it will rise will require a closer examination of their assumptions and how reasonable they are. Brokers will discount the company valuation, but not by a factor of 10 to 20.

Cheers