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.
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.
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.” 
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…
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.
Image from 123RF.com
