I haven't had time to post a new entry the past few weeks; so I'm going to get my feet wet by starting with a short one addressing today's across the board sell-off. Some friends of mine who have just entered the market the past few months have expressed their concern of today's market action.
Many investors are concerned that the economic recovery is faltering and when there is uncertainty in the equities market, the usual response it to hoard cash by selling riskier assets. Unfortunately, emerging market (like ours) falls into the category of "riskier assets". Our economy is still poised to grow this year and probably the next few years, so i believe the EU zone uncertainty is simply a bump on the road.
At the end of the day, markets will rise and fall due to chatter, but we should rest easy knowing that the value is what drives the price or down, not sentiment by fund managers, individuals, or as others may say, weak hands.
Just a quick note of what I've been looking at recently. SCC has continued to attract my attention, the recent 3 figure spike in profit growth is something we just can't ignore. LC has also begun to attract my attention due to the increased volume and good news coming from its foreign partner, Gold Fields, a swiss-based mining company (I will be posting an entry on this soon). A few other companies that I have continues to study are DMC, MBT, UBP.
norman, allow me to answer ur question at guscosio. when lc was 0.5, lcb was 0.6. if both rise 100 percent, lc will be 1.00 and lcb will be 1.20. so it doesnt surprise me that lcb is currently 1.10 now that lc is 0.91. hindi ba tama?
ReplyDeleteHi anonymous,
ReplyDeleteThanks for the insight, but I'm actually more curious with what actually happens if such a large gap exists between A and B shares. Admittedly, I've never bought into a company with A/B shares.
At one point though the difference was around .03-.05 sometime in the .8-.9 range.
there was indeed a time in the near past that a and b were close together. that was when there was a rumor of declassification of shares. so filipinos sold their b and bought a. there is very slim chance that b outpaces a by a very large gap simply because before this happens, filipinos would be selling b for profit and buying a instead.
ReplyDeletei also replied to marketbeginner2's question on lc/b declassification at his own site (still under moderation at this moment). i still dont know how to post comment at guscosio.
ReplyDeleteI believe its only possible to comment on gus cosio's site after you've registered on wordpress, you don't have to have a blog, just register.
ReplyDelete