Singapore “Flyer” Of The Week: United Fiber System

StockMarketBoardShares in United Fiber System (SGX: P30) climbed as much as 18% this week to put it into “Flyer” territory. However, in terms of dollars and cents, the shares gained an imperceptibly small $0.004 to $0.026, which values the company S$99m.

It was only six weeks ago that the company fell under our “Falling Knife” spotlight. At the time, United Fiber was under the cosh over concerns of its construction business, Poh Lian, which was put under judicial management. According to United Fiber, the builder had been experiencing significant “financial and operational difficulties”. United Fiber attributed this to “challenging conditions” in the local construction industry.

Mercifully, the woes at Poh Lian may soon be coming to an end. At a board meeting last week, a number of resolutions were put to vote and approved. These included a review of past transactions, realising remaining assets and liquidating dormant and active subsidiaries.

It is often said that the market hates uncertainty. In the case of United Fiber, there would have been some uncertainty over the outcome of Poh Lian. But with that out of the way, some of the uncertainty has been resolved.

However, another well-trodden saying in the market is that “it is better to travel than to arrive”. Consequently, with the Poh Lian journey almost at an end, the journey for the shares may end too, unless the company finds a good compass.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.