RE: China / Product Shortages15 Feb 2020 12:03
I am a supporter of UPGS and have shares, however, anyone who knows how densely populated China is and how crowded airports and public places can be (albeit not as bad now as it normally is), coupled with how coronavirus is transmitted and how many items are handled by hand (money, fast food, shopping goods, items in manufacture etc), then it should be clear that the current exponential rise in the infection rate and the mortality rate is going to increase in China and it is only a matter of time before similar trends are seen in other countries. It is not IF, but WHEN this happens. All the steps currently in place inside and outside China and beyond are merely slowing the problem down. As for UPGS, the impact on logistics may not have taken hold yet, but again, that is only a matter of time before it is adversely affected - just look at how the motor industry is being affected worldwide with the difficulties being encountered with components sourced from China. It is worrying UPGS have not declared a strategy for how they intend to mitigate the anticipated problems and how much it is being affected. Just stating they are "monitoring" the situation is not reassuring to investors. They should be declaring whether they have increased their stock holding to mitigate delays, or what other steps they have taken. I am worried UPGS may handle this issue as badly as the handled their financial reporting after they launched the company on the stock market. (and look what that did to their share price). UPGS is a volatile stock due to its small size. I think when the impact on UPGS's stock management starts to become clear to investors outside the company then I think further falls are inevitable. In the longer term, when coronavirus is but a distant memory, I feel UPGS is a promising company capable of delivery good returns for investors.