Q: Your thoughts on Ucore please.It seems to be bouncing all over the place after the news of it's plant coming on line.Is it a buy or a watch?
5i Research Answer:
The sector has been very volatile of late, and any small cap stock up 400% in a year is aslo going to be naturally bouncy in a shaky overall market. There has been no company news but the company did present at a conference yesterday. Revenue is set to ramp up this year and accelerate next year. There has been some recent insider buying. For the sector, it is interesting, but its small size adds risks. For now, we would consider it a watch. If shares consolidate their giant gains a bit more, it will look more attractive as a soon-to-be producer.