Tag: PSEi

PSEi Lost 63.51, JGS Fell 11%

Posted by AiDz – February 6, 2012

The PSE Index – 3 February 2012

The Philippine stocks on Friday, did a market correction as it lost 63.51 points after making another record high (4,822.08 points) on Thursday, 2 Feb 2012. The PSEi closed at 4,758.57 points. Market breadth was negative with 107 losers versus 79 gainers; another 32 issues were unchanged.

2012-3Feb-PSEi

We might see an uptrend continuation on Monday as US Markets were up on Friday’s closing, next target at 4,800, then 4,900.

JGS Sank 11% after Selling 215M shares at P25/Share

JG Summit Holdings (JGS) nosedived to P25.25 or -11.40% after releasing a disclosure saying that it raised US$125 million from a private placement of 215 million existing shares sold at P25 each. “The transaction was done in order to widen the shareholder base of the company, and as a response to strong demand for the company’s stock.”

Credit Suisse sold a total of 4.887M shares at P25.28 average, CLSA sold 4.2M shares at P25.28 average, Deutsche sold 3.426M shares at an average P25.36.

2012Feb3-JG Summit Holdings Inc-JGS

Now, if you’d ask me, a 12% discount from Thursday’s closing price of 28.50 is an irresistable offer! I was able to buy at an average of P25.39, I know that it’s a big gamble on my part but I feel that this stock might not go further down, if it will, my stop loss is at P24. If my speculation is correct, i’m seeing an upside of 12.6% (P28.5). I also think that there’s nothing fundamentally wrong with this holding company and the selldown was only caused by market noise and is only temporary. Just as Warren Buffet said, “try to be fearful when others are greedy and greedy when others are fearful.” ;)

3913681-business-partners-holding-a-wad-of-cash-while-smoking-cigars-and-drinking-cocktails--isolated

LMG’s Up Down Swings

I just read this article on Interaksyon.com about LMG Chemicals, COCKTALES: Brother scalps eldest brother in LMG market play LMG.

So if you’d notice the price of LMG went down 30% on 26 Dec. 2011 then skyrocketed to as much as 592% in less than 2 months! Well, that’s the reason. I’m just wondering what will happen to Diversified Securities since they’re the broker who crossed the transaction, will they be charged of insider trading by the SEC? For all those LMG holders, good luck to you guys, we might see a plummeting stock once again…

2012Feb-LMG Chemicals Corporation

Warren Buffet’s quote doesn’t apply to LMG, instead, we need to find out how to “short” this stock haha! :p

WIN-PHES Tandem

The WIN-PHES tandem is still on a retracement (50% at best), if 0.44 for WIN and 0.40 for PHES holds, then they might continue to go up. But if it doesn’t make sure you know how to exit quickly. In my own opinion, as long as these support numbers are respected, we might be seeing a higher target price.

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Xin Nian Kuai Le!

Posted by AiDz – January 24, 2012

The PSE Index – 24 January 2012

The Philippine Stock Exchange Index succumbed to profit taking after four days of gain. It closed at 4,714.35, down 33.55 points, from a record high of 4,747.90 points on 20 January 2012. Losers beat gainers, 89 to 78; while 36 issues unchanged. Support is seen around 4,650 and next resistance is at 4,800 points.

2012Jan24-PSEi

For the past few days, Wellex Industries, WIN, did an outstanding run when it hit the target price at 0.50, although it encountered a minor correction today. Support is at 0.39, it seems that this may continue to go beyond 0.50 but only the ticker can tell :P

Information Capital Technology Ventures, Inc or ICTV closed higher today at 0.61 after reaching a high of 0.64. It looks like it’s forming a cup and handle with a target at 0.93. Support is seen at 0.48.

Gaming, mining and infrastructure stocks are the favorite of analysts for 2012. As for me, it still depends on the chart. I hope we have an auspicious 2012 this year of the Black Water Dragon. To all my Chinese friends, Gong Xi Fa Cai! (Congratulations and be Prosperous!) Xin Nian Kuai Le! (Happy New Year!) :D

11552197-chinese-black-water-dragon--symbol-of-2012-year-origami-vector

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PSEi closed flat; SONA;Madness of Crowds

Posted by AiDz – July 26, 2011

The PSE Index – 25 July 2011

Philippine stocks closed flat on Monday, July 25, 2011, as the PSE index closed at 4,480.50. Intraday went to as low as 4467.18 but was able to pick up at the closing of the bell, adding a mere 2.14 points. Overall sentiment was negative as there were 80 decliner stocks vs. 75 advancers, while 39 issues remained unchanged.

Looking at the chart below, it seems that the PSE index might continue to move up this week. I’m also anticipating the results of the State of the Nation Address (SONA) of President Benigno Aquino III to be taken positively by both foreign and local investors, held on Monday afternoon.

PSEi - July 25 2011

PAL Holdings, PAL

Among the Top Gainers today, besides BSC, PAL Holdings Inc (PAL), closed to a surprising 20.75%, or P6.40 from previous P5.30. If the uptrend continues, it might hit a target price of P7.90, its previous high.

Madness Crowds

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I’ve just observed from today’s trading the price-action between Basic Energy Corp, BSC and East Asia Power,PWR.

BSC was mostly bought by CitisecOnline,COL,members at 0.2778 average worth P34.5M while Kings Power Securities was dumping P43.6M worth at 0.270 average. This resulted in BSC jumping to the roof at P0.29 from as early as 10:05AM! On the other hand, PWR, was dumped by COL, the top seller at P2.52 average, worth P15.3M.

What does this tell us? In my opinion, those who held PWR for the past week are now making their way out as quickly as possible, since their risk tolerance had passed its limits. They are now shifting their money to BSC to recover from their big losses. I’m not talking about Technical Analysis at the moment, I’m referring to, what we call madness of crowds.

From Charles Mackay’s 1841 book, “Extraordinary Popular Delusions and the Madness of Crowds,” The fear of being left out when your friends seem to be making big bucks, drives the overwhelming power of the crowd, which eventually drives a stock price to surge up or reach the ceiling, cases in point; BSC, ZHI, BHI, and PWR.

I hope I’m making sense here and good luck on your tomorrow’s trades!

 

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