6 Oct 20: Yesterday there was a spike in the share price +8.9% to close near the highs at $0.795 with increased volume. It has strongly broken above it's 6 month trading range. Not sure of the reason but being a reasonability illiquid stock, it could be the recent EGP video update where UOS was highlighted. It is EGP's largest holding. Maybe some investors have been reminded of it and have increased their personal stakes?
6 Oct 20: Tony Hansen from EGP Capital considers UOS to the "sleeper" wealth creater and one of the most underated stocks on the ASX.
It is trading well below its 30 Jun 20 NTA of $1.03. However, it has almost always traded below NTA. A large portion of the share are held by management so the stock is illiquid for its $1b+ market cap.
Tony Hansen outlines the case for UOS in his investor update for September (video update with link in the September fund update released today). Well worth watching.
2020 has shown the benefit of having a strong balance sheet. The first 6 months has shown a predictable big slump in profits compared with that of last year. For what is a challenging year must be even more so for its competitors. UOS is sitting on a big cash pile and with the right management team to put it to work at an opportunistic time. They have taken a minor impairment on assets. Previously though I have noticed a tendency for conservative valuations to begin with. Expect they will have a bright future when things eventually normalise. Like elsewhere in the world, the Malaysian government are making big efforts to stimulate, particularly with housing, in response to covid-19. Management have shown in the past great ability and flexibility to adapt and to respond wisely to economic shocks so see no reason they won’t do so again.