STK Emergent climbs 35% in two weeks

STK Emergent (STK) closed-end investment fund has posted an
over 35% increase in the past two weeks, one of the ten highest
growth rates on the BSE in 2010. Yesterday alone, STK shares rose
by over 10%, amid one of the largest trading volumes since the fund
was listed, in August 2008. STK advance comes as SIF stock,
accounting for more than 35% in the fund’s portfolio, have gained
25% since the start of the year. Last year, SIFs gained over 90%,
while STK stalled. “(…) As the price/company value ratio stands
at 0.27, the company is clearly undervalued. The strong increase in
recent months is mainly because of the lack of sales by
shareholders and the high demand,” explained Darie Moldovan,
trading manager with Cluj-based Broker brokerage. At present, the
fund’s units are traded at a price of 54.5 RON/unit, with the
company’s market capitalisation revolving around 8m euros at this
price level, in the context where the fund’s net asset in late
January stood at 20m euros.