Huge volume and a respective 60% increase in Unico, Inc. (OTCBB: UNCO, UNCO message board or UNCO.OB) stock price on Tuesday surprised those playing the preexisting downtrend. Truly the company's stock hasn't shown much positive action over the past three years so playing the news looks like the best way to earn some cash on this penny stock.
First off the cause for price action was announcement the company received an approval to construct a new tailing pond at their deer trail mine. By doing so Unico should be able to increase the production outcome from the mentioned mine.
The construction of the new tailing pond should be completed by the end of 2009. However without seeing it work, there's no way to determine the extent of the improvement it will deliver and Unico hasn't disclosed the projection in their press release.
On the other hand, anyways you look at it, this improvement won't instantly solve the company's financial problems. Moreover, since they operate through subsidiaries revenues will most likely only change on their side before the parent company will have any gain from this.
In conclusion, there likely won't be a follow up stock price move on this news tomorrow and the fundamental effect from this tailing pond is likely to be negligible.
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