Penny Stock Watch - UCBH

The other company hurt by subprime crisis is UCBH Holdings Inc. (UCBH), the holding company for United Commercial Bank which provides banking service to small and mid size business. For the past 52 weeks the stock went from $20 to as low as $2.17 per share recently, a 90% drop. However recently the stock came back alive and is now trading at $2.87 per share. Maybe this is the time to buy the stock at bargain price.

Technical
The technical chart shows the stock is in a bear market as it is way below both 50 day and 200 day moving average. One positive sign is KD which is rising.

Insider
The insiders are very bullish about the company and have been buying shares this year. The institutions however are still bearish about the stock.

Financial
Despite huge drop at net income, the company is still getting positive income which is a good sign. The cash level is low so the company is still borrowing money and selling stocks.

Conclusion
Financial companies are bad. But the company that can generate net income should be a great one to buy while it is cheap.

Penny Stock Score (1~5) 5 is highest
1. Industry (financial): 1
2. Technical: 2
3. Insider: 4
4. Financial: 3
Recommendation: Accumulate