Penny Stocks On The Move: Uni Core Holdings Corp. (UCHC)

Just one day after announcing improved performance of the company’s subsidiary, APT Paper Group, Uni Core Holdings Corporation (OTCBB: UCHC), a Hong Kong based holding company, has seen its stock price surge 383%. Shares in the penny stock of Uni Core Holdings, UCHC, closed at $0.029, up 152% yesterday on volume of 4.8 million shares. UCHC is one of the best penny stocks to watch today with the momentum it has built over the last two trading sessions.

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Uni Core Holdings announced Wednesday a 41% increase in sales turnover for the month of February 2012 compared to February 2011. UCHC also announced an increase in gross profit of 250% as well compared to the same month last year.

UCHC Stock Snap Shot:

Market Cap: 20.51M
52 Week High
(6/13/2011): 0.24
52 Week Low
(4/10/2012): 0.006
Avg Vol (3 month): 633,756
Avg Vol (10 day): 1,759,090
Shares Outstanding: 707.41M
Float: 372.20M
% Held by Insiders: 43.49%

RSI: 72.40
MACD: -0.001
Accumulation: Bullish
Volume: Surging

2nd Resistance Point: 0.0407
1st Resistance Point: 0.0348

1st Support Level: 0.0173
2nd Support Level: 0.0057

Since the UCHC subsidiary, APT Paper Group rehired its former CEO in August, 2011, the company has restructured itself significantly in terms of Uni Core’s management and business model.  Even with the financial results for February 2012, Q1 traditionally is the weakest which is encouraging considering the seven months’ effort CEO Wen has achieved.

Earlier today, UCHC released a statement claiming that APT Paper Group reduces the proportion of foam in the composite packaging and increases the proportion of the honeycomb paper products through technical research and development; these help effectively reduce costs and improve profit margin.

Taking the Qingdao Factory’s supply of air-conditioner packaging products to customers as an example, the profit margin can be increased by 5% through the research and development effort.

Through technical research and development, the Qingdao Factory replaced part of the foam materials originally adopted in the composite packaging with honeycomb paper products, providing simple but sturdy overall environment-friendly packaging to a variety of products.

Comparing with the original composite packaging, the new packaging is more environmentally friendly and achieves higher cost savings.  The Qingdao Factory is applying for a patent of the new composite packaging.

APT Group History:

Starting from October 1998, there was a decrease in China’s exports with issues on wooden packaging. The Chinese Government had requested urgent resolution on related strategies and tactics to resolve the issues. This is the main reason and force seeking replacement to wooden packaging materials, honeycomb paper material is an ideal substitute and quickly became popular in the industry of packaging.

UCHC‘s subsidiary, APT Group entered into the business at the very early stage of the industry when honeycomb paper products were still an unknown industry to most of the paper products companies. APT Group highly promoted the products and became the industry leader in the Pearl River Delta Region having a significant market share.

Uni Core Holdings Corp. Website here.

Bottom Line: The penny stock looks pretty damn good. Due to increased global awareness of environmental protection in recent years, the demand for honeycomb paper products continues to increase. UCHC has some strong revenues (see here) and a niche market which they seem to have monopolized in a manufacturing mega-center, China.


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