In a ridiculously heavy day of trading that saw nearly four million shares change hands, Uni Core Holdings (OTC: UCHC) saw its stock lose half of its value almost immediately upon the opening bell.
This came in spite of that fact that Uni Core Holdings’ majority owned subsidiary, Prosperous Agriculture (Shaanxi Prosperous Agriculture Company Limited), announced over $1 million in sales at a recent trade fair. Outside of the Great Wall and the Forbidden City, Xian boasts one of China’s “must sees” in the heart of Shaanxi Province, the Terra Cotta Warriors. Xian played host last week to Uni Core Holdings’ first National Distributor Recruitment Convention on August 31, 2012, for its patent-winning Sustained-Released Diammonium Phosphate. Unfortunately, its stock didn’t put up half the fight today as the famed warriors depicted by these statues.
Uni Core is not solely tied to Prosperous Agriculture’s wagon.
Uni Core is a Hong Kong-based holding company that began its life with the purchase of APT Paper Group in 2010. APT manufactures recyclable products from recycled materials. A green idea that China is in desperate need of in order to minimize the environmental damage it has done over the last 30 years since the adoption of Deng Xiao Ping’s challenges in his famous Shenzhen speech.
APT’s products include honeycomb paper pallets, panels, cartons, coffins and cushions, in addition to hundreds of additional recyclable products made from recycled materials.
To listen to Wang Fei, General Manager of Prosperous Agriculture, one would have thought an upward move was in order for Uni Core when he said, “Prosperous Agriculture has planned at least 4 promotion sessions by the end of the fiscal year of 2012 in order to promote this first-class and unique patented product in the nation. This is only the first session and we will organize three more in the next few months in Shaanxi and the northeastern provinces of China. Through these meetings, Prosperous Agriculture will quickly complete the distribution of this product in the appropriate regions of the nation. It is expected to bring in a sales revenue of not less than RMB50 million (around US$8 million) to Prosperous Agriculture by the end of this year.”
At the risk of gross understatement, this clearly didn’t impress or motivate investors as Uni Core entered today’s trading. Uni Core traded steadily until investors were informed of an SEC filing announcing a 100 to 1 reverse stock split. Following this announcement, Uni Core’s stock took a beating worse than the proverbial redheaded stepchild.
The specifics of said beating? A drop of nearly 70% in less than 10 minutes’ time. A slight recovery was little consolation for those holding this holding company. Uni Core is going somewhere fast, it is just a matter of where and when. Have a look to see if this is the beginning of the end, or a moment to look at a resurrection.
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