Small Cap IR issued a report on Uni Core Holdings Corp (OTCMKTS:UCHC) with a “hold” recommendation on the stock. The company provides Web design and hosting services to clients in China via its subsidiary, ChinaE. The firm provides Internet and business consulting services along with sales of agricultural and paper products. The Company, through its subsidiary offers Internet services including, but not confined to, software development, Web-hosting, domain name registration and Web design. It is a Wyoming unit but operates primarily in China.
As highlighted above, Uni Core operates in a growing and highly competitive industry. The large companies with great resources influence the market by opting for various strategies to slow down or block market penetration. However, there are some technologies of the company that are unique to offer benefits and therefore Uni Core enjoys a pioneering position in patent protection and product development.
China represents a strong emerging market whose contribution in the global economy is growing steadily. Its economic growth rate, estimated by its GDP, has consistently been over 7% per year from past 10 years. As of now, Uni Core Holdings offers services and products to consumers and businesses located primarily in China. The plan is to take benefit of China’s economic growth to extend its product reach and extend businesses. It has commenced to acquire diverse businesses that directly linked to each other. It is a good hedge strategy against the fall down of a single industry.
Since Uni Core operates through its subsidiaries firms in China, it is bound to be affected by the many court decisions, administrative determinations, laws, regulations, and similar constraints applicable to business operations in China. The economy has witnessed significant growth but growth has been uneven creating fluctuations in business. In last trading session, the stock price of Uni Core surged more than 350% to close the trading session at $0.00090.