The United Laboratories (HKG: 3933) (OTCPK: ULHIF) shares are down 14% today. The problem with this about United Labs is that out here, and in English, there’s near no coverage of the company. Certainly there’s nothing to explain this price loss on the day. There’s barely even information in English to describe the company. This makes trading the shares somewhat difficult - information vacuums always are.
We can find out what the company does: “The United Laboratories International Holdings Limited, an investment holding company, engages in the research and development, manufacture, distribution, and sale of pharmaceutical products. It operates through three segments: Bulk Medicine, Intermediate Products, and Finished Products. The company offers oral antibiotics, antimicrobials for injection, anti-cold products, cough medicines, ophthalmic drugs, antiviral drugs, anti-hepatitis B drugs, diabetes drugs, skin drugs for external use, cardiovascular and cerebrovascular drugs, amoxicillin products, nervous system drugs, vitamins, veterinary drugs, and vacant gelatin capsules, as well as active pharmaceutical ingredients and intermediate products. It also manufactures and sells soft capsules casings; holds trademarks; and trades in pharmaceutical products.” It largely addresses the China market along with middle income economies in Latin America and SE Asia.
Great, market capitalisation is about the $1 billion mark (in USD) and it clearly has a real business and prospects.
United Laboratories share price from Google Finance
The latest dividend was announced at the end of August, the shares went ex-div a couple of days back. There’s clearly a real company and business here. And yet in the English language there’s near nothing about it. Certainly, nothing to explain the 14% drop today. We would assume that there’s that run up on the basis of the dividend which then fades away as it goes ex-. But we are assuming, not knowing here.
Our point really is that there are many apparently decent China stocks traded both in Hong Kong and upon Nasdaq. But we never do gain the information flow to be able to see what’s happening. Even after the thing has happened, let along gain enough information to be able to predict. “A far away country of which we know little” is not a phrase anyone really lies to recall in English but it is in fact applicable here.
Our problem as English speakers is that we simply don’t gain the information flow to be able to trade a lot of these Mainland stocks. And if we’re honest about it trading in an information vacuum really isn’t the way to be trying to make money.
