Sunday, March 10, 2013

UOL Group Limited

A friend of mine had asked me about UOL Group limited.

I took a cursory look at its charts and it looks like there has been a stupendous rise in the last four years.

One has to go all the way back to 2008-2009 to see a steep drop of 43% in share value

In fact, the stock recouped its losses and more than made up in 2009 to 2010.

So, does this mean that UOL is set for another big run to $10?

Short answer is no.

Long answer is unlikely.

The trend shows that in a matter of a month or so, it can lose upto 40% of its value, we saw that in the 2011 to 2012 chart.

My suggestion would be to stay clear of this stock.

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