DMN October 19 Lepanto offering rights is just wrong after their huge selling

PSEi 4,191.25 | down -23.86 | -0.57%
Value Php 4.4B


Dow Jones 11,143.69 +80.91 (0.73%)
S&P 500 1,184.71 +8.52 (0.72%)
Nasdaq 2,480.66 +11.89 (0.48%)

In early trading at Wall Street, early foreclosure fears gave way to a much more positive close, as better than expected housing data and CBOE data was released. The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell below 19.

Euro/dow futures markets were weak as Apple Inc. forecast profit that will rise less than analysts predicted and IBM Corp. reported a drop in new contracts. Oil fell from a two- week high and the dollar weakened against the yen.  Asia was generally higher while the PSEi sank to 40 before paring some of the loss by closing.

The market was greeted by a disclosure stating that Lepanto has a pending application with the PSE to undertake YET AGAIN another rights offering at .30 to fund its Victoria project. 1 share for every 3.3 shares held. This sent shares A and B plummeting even further, and their 12% and 10% drop each did not really figure in the top 5 contributors in terms of points lost for the PSEi simply because their weighting in the index was not that heavy. So after everything said and done here, the broker FYAP selling LC/B the past days since the huge runup is actually suspect of insider trading, as hundreds of millions were sold, ahead of a rights offering news. No one else was privy to that information except for the owner. Done thrus and EQtrades to and from other brokers should also be investigated. Apart from selling in advance (whoever did that), in high probability had advance info as there would not be that much 100s of millions in conviction selling. Having said that, and aside from the advance selling, no other propaganda or solicitation was made to the public to actually buy his stock anyway. People like me who lost money on this have no one else to blame but our own personal greed. Of course battling against the owner is unfair in itself, and defeats any technicals of fibonacci retracement, or fundamentals of 80 cent to 1 peso valuation, simply because you are up against the owner. Ah well, life goes on. Holders who got stuck at high prices must subscribe to the rights or be diluted.

Intraday, MEG falls to 2.44 but recovers strongly to 2.59, making it the top index gainer in percentage as well as points added to the index (+4).

FOREIGN BUYING Php 1,840,494,724.54
FOREIGN SELLING Php 2,019,979,933.69
Day 2 of NFS! : SCC 33M, ALI 71M, DMC 19M, AGI 23M, EEI 24M, EDC 94M, MER 25M, JFC 28M, BDO 24M. Just relatively small NFS in quite a handful of stocks really, with even very few in amount and few in numbers worth of NFB to contradict the balance.

Other top index gainers were MBT SMPH AEV AC FLI ABS AGI EDC URC. MBT even dropped to 67.6 but recovered strongly to 70 by closing.

Top index losers were of course the weirdos LC/B, plus JFC PX MER ICT AP ALI TEL MPI.

Top overall gainers aside from MEG: ORE 3.27 (undergoing a wedge breakout), plus small gains in VLL TBGI ISM SLI ELI. A lot on the losers’ side: MK OV PO MAB PX 13.66 APC .74.

NO. OF ADVANCES: 44
NO. OF DECLINES: 86
NO. OF UNCHANGED: 54
NO. OF TRADED ISSUES: 184
NO. OF TRADES: 13305

LEGEND:
NFB : Net Foreign Buying
NFS : Net Foreign Selling
PHP : Philippine pesos

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