China Unicom (CHU) in Focus: Stock Moves 7.8% Higher
China Unicom (Hong Kong) LimitedCHU was a big mover last session with its shares rising roughly 8% on the day. The surge in U.S. trading came on the announcement that China's three main telecommunications operators, namely China Mobile CHL , China Unicom and China Telecom, will transfer Rmb231 billion ($36 billion) in network assets to a jointly owned holding company, in an effort to improve efficiency by pooling resources. This development led to far more shares changing hands yesterday than in a normal session. The move breaks the recent trend of the company as it is now trading above the past one month's volatile price range of $12.40 to $13.70.
This telecommunications services provider in the People's Republic of China has seen one negative estimate revision in the last 30 days. The Zacks Consensus Estimate has also moved lower over the same period. This implies trouble down the road. So make sure to keep an eye on this stock going forward to see if yesterday's rally can last.
China Unicom currently has a Zacks Rank #5 (Strong Sell) while its Earnings ESP is 0.00%.
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