Last night, one of my good old friend called me and chit chat about some stocks. He recommended UCHITEC to me as the stock looks like will shoot up.
Then, I did a quick analysis on UCHITEC. You can download here: https://lcchong.files.wordpress.com/2013/10/uchitec-q2-2013.xlsx
I do not finish the entire analysis, but only few worksheets which are highlighted with Orange colour.
At a glance, this company may be facing very stiff competition.
UCHITEC gives quite high dividend, 0.12 dps in 2012 which is around 10%. However, I can’t comprehend the rationale of giving high dividend while the company performance is deteriorating. If you want to buy this stock for dividend, based on the past records, if you buy this stock above 1.8 (provided if UCHITEC is able to shoot up), you won’t be able to enjoy 10% Dividend Yield. What if UCHITEC decides not to continue high dividend payout after 2 years?
1.5-1.56 is very strong resistance zone. UCHITEC couldn’t break the zone since 2009.
Risk of buying this stock is quite high, but still up to your risk appetite.