ANNOUNCEMENT – INCORPORATION OF ASSOCIATED COMPANY
United Engineers Limited (the “Company”, and together with its subsidiaries, the “Group”) wishes to announce that its indirect 67.6% subsidiary, O’Connor’s Holdings Pte Ltd (“OCH”), has incorporated an associated company in Thailand, namely, O’Connor’s (Thailand) Co., Ltd. (“OC Thailand”), with an initial issued and paid-up capital of THB10,000,000 (equivalent to approximately S$417,000), comprising 100,000 shares of THB100 each. OCH has subscribed for 49,000 shares, representing 49% of the total equity interest in OC Thailand. OC Thailand is principally engaged in the business of system integration and trading and distribution of engineering systems. The incorporation of OC Thailand is not expected to have any material impact on the net tangible assets or earnings per share of the Group for the financial year ending 31 December 2015. None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the said incorporation.
BY ORDER OF THE BOARD Tan Chee Keong Roy Group Chief Financial Officer 31 December 2015
S-Chips and China-based/China-related listed companies stocks are strictly meant for gambling purposes, nothing else. Play them when they're hot, do not cling onto them when the share price has already collapsed.
The Board of Directors of United Engineers Limited (the "Company") wishes to announce the proposed disposal of the Company's indirectly owned subsidiary, Multi-Fineline Electronix, Inc. to Suzhou Dongshan Precision Manufacturing Co., Ltd..
Definition of Value Trap — A stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher.
Using price and volume as a trend indicator: 1. High volume is bearish in distribution mode. 2. High volume is bullish in accumulation mode. 3. Never catch a stock falling on high volume or one that is rising on thin volume.
UE ~ Bull Trap
UE closed with a hammer @ S$2.04 (+0.01, +0.5%) with 470,000 shares done on 19 Feb 2016.
Immediate support @ S$1.94, immediate resistance @ S$2.08, strong resistance @ S$2.15, the 200d SMA.