Nickel Asia’s Debut, Green Monday

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Monday morning, 22 November, is the Initial Public Offering date of Nickel Asia (NIKL). Its offer price is at 15.00/share but it’s now already trading over the counter at 18-21 per share! The price might go beyond 25/share at the opening of the market.

As my momentum trader mentor tells us, if you didn’t subscribe to Nickel Asia’s IPO, you can buy other companies that process Nickel, like ORE and NI. Especially ORE, which broke it’s 4.0 resistance last Friday and might continue its momentum for the next two days.

The PSE index rose on Friday (closed at 4203.6) due to business Confidence Index hitting new high. This is a good news for the traders and investors and also good for the Philippine economy.

San Miguel Corporation (SMC) rose to its all time high at 119.50 due to the news that it will sell $3B in shares in 2011. The re-issued shares would likely be priced between P150 and P200 apiece, given the company’s existing and future business prospects said Ramon Ang, SMC’s president.


Here’s something to look forward to, the Philippine Government’s public-private partnership or PPP program. The program’s aim is to boost the infrastructure of the country by providing local companies that will venture into these projects an easier access to bank loans.

The five projects of the government include:

-the $170-million expansion of the Light Rail Transit (LRT) Line 1, to be turned over to a concessionaire at market prices; -the $140-million expansion and privatization of the Metro Rail Transit-3 under a scheme similar to the LRT-1 deal; -the $700-million LRT-1 South extension, where O&M (Operation and Maintenance) will be worth $800 million; -the $120-million LRT Line 2 East extension with O&M worth $100 million; and -the privatization of the $28-million Laguindingan airport in Misamis Oriental with O&M at $5 million.

Private sector investors will have to partly fund the construction of the remaining six projects:

-the 27.6-kilometer Cavite-Laguna Expressway worth $262 million; -an elevated 4.9-kilometer expressway worth $235.33 million that will link the Skyway and Manila-Cavite Coastal expressway to the Ninoy Aquino International Airport terminals; -the North Luzon Expressway-South Luzon Expressway link worth $467 million; -a new $120-million airport in Panglao, Bohol; -the $97-million rehabilitation of the airport in Puerto Princesa, Palawan; and -a new $71-million airport in Daraga, Albay.

More on Bworldonline.

The companies that are interested on the project are San Miguel Corporation (SMC), Metro Pacific Investments Corp.(MPI) and Ayala Corp (AC). If you are a long term investor, it’s wise to invest in these 3 companies. Personally, I’d like MPI since it’s still trading at a cheap price, between 3.6-4, where its previous high was 7.1 (July 2009).

Happy trading! God bless us in all our trades! 😀

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