Re: [CANSLIM] UCBH

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] UCBH
Date: Thu, 15 Aug 2002 18:50:55 -0400

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Ann, several comments, I already addressed "institutional ownership" in
another email just posted, but would add to that I have never seen a stock
with true institutional ownership of 91%, unless the float was a very small
percent of the total issue (and I would doubt it even then). Institutional
investors want liquidity even more than us retail investors. If I see this
ownership reported this high, I would immediately suspect wrong data, either
because of a split, new issue, duplicate counting, or some other cause.
Mutual fund ownership is high (DGO says 31% of the float of 18.6 million
shares), and nr of funds owning has been growing (reported at 143 for June
02, up from 140 the prior qtr and 119 a year ago). So institutional
ownership is going to be high, but no where near 91%.

Second, you don't mention the chart pattern that you see. What I get is a
double bottom, with the pivot occurring 7/29 as it passed 10 cents higher
than the mid point of the "W" at a price of 40.05. The more cautious might
have wanted to wait for 7/30 to see if it followed thru. Ironically, that
would have put you into the stock just in time to catch the nearly 8%
correction (good example of why this "M" suggests only buying a partial
position, if you insist on buying at all).

As for the fraud lawsuit loss, I must assume any mental, emotional or
financial factors are already priced into the stock. The only issue it would
have for me is what, if anything, it tells me about the ethics or honestly
of management. DGO says Management owns 5% (vice Yahoo's 1%).

- ----- Original Message -----
From: "Ann" <annholly@attbi.com>
To: "CANSLIM Listserv" <canslim@lists.xmission.com>
Sent: Thursday, August 15, 2002 8:59 AM
Subject: [CANSLIM] UCBH


I am trying to do DD, using Yahoo.

Looking at chart, I believe that it broke out on 8/12 (pp 42.19). It is now
at 42.40, which is well within the 2-3% limit that WON advises using (above
breakout) in this M.

On 8/14, it hit a new 52-wk high (42.73).

I was trying to do my due diligence, and came across some puzzling pieces of
info:

Insiders only own 1%, whereas institutions own 91%. Is that worrisome?

Also, they just lost a big fraud lawsuit!

Sales growth is down, but less so thatn the rest of the industry.
EPS quarterly growth is up 28%; annual 23% (if I am doing this right!).
Pretax profit margin is 30%; after tax 18%.

ROE is 20%.

To me the company looks good, the industry is doing well.

How significant is that court case?

(I'm going for a walk. Hopefully I won't miss my big chance!)

Ann


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