By: Derek Lim Unifiber profits increased by 302%. On paper, it looks fantastic but I have my doubts. View the Financial Statement here. 1) Revenue and Gross profits went down - mainly due to no pulp sales from PT Kiani Kertas. It seems to me that pulp sales is uncertain and with its construction business reaching saturation point, the only hope lies on its woodchip sales. 2) Unifiber's Main profit is derived from increase in fair value less estimated point-of-sale costs of forest asset. This is very subjective - It may be true that as trees grow bigger, its value increase but how does one derive the exact value? 3) Acquisition of PT Kiani Kertas. This is my main concern and I believe that this is the make or break for Unifiber. Unifiber has been trying to acquire PT KK since 2005 and have spent substantial amount of money not only to finance its acquisition but also to keep it operational. In my opinion, this has been dragging on for too long and I suspect some politics is involved. The only positive news is that Unifiber has attracted the attention of a few international investment funds, most recently Apax. It seems that these investment company sees something in Unifiber that I don't. There's also this person by the nick of 888max in CNA who has been promoting Unifiber very strongly. You can view the thread here. In view of my strategy to reduce high risk stocks from my portfolio, I have set a sell price of $0.300 and a cut loss price of $0.220.