Do Not Read This: Diego Cagahastian from Opinyon
Do Not Read This

$:SMC defies its own good news

Sep 14, 2021, 1:36 AM
Diego S. Cagahastian

Diego S. Cagahastian

Columnist

SMC Infrastructure's Skyway Stage 3 was opened in January this year, effectively connecting Buendia with Balintawak, Quezon City.

Then on May 24, the same elevated expressway opened its southbound exit at Quirino Ave., a banner event among motorists coming from Balintawak and Quezon Ave. in Quezon City because they are now able to directly reach the heart of Manila within less than 20 minutes from 1.5 hours without traffic.

These developments bode well for San Miguel, and we had hoped that the valuation of its stock, $:SMC, will improve for the upside at this time.

But it was not so.

From a high of 134 on January 4, 2021, it plunged to 113.95 on May 24, the day the Quirino southbound exit was opened.

It stayed well below its 20-day Moving Average and its 50-day MA. It seems that San Miguel is indeed bucking the good news.

When $:SMC was trading at 99.00 from August, 2020 to the middle of October, 2020, there were also positive developments in San Miguel's businesses, but its stock prices remained depressed, following a long consolidation below.

The recent good news is the delivery of the first train sets from South Korea and their inspection and mounting on the rails of San Miguel-owned MRT 7 on Monday, Sept. 13.

To put the importance of this milestone event in context, we dare to mention that it took two decades and three Philippine presidencies (Gloria Macapagal Arroyo, Benigno Aquino III and Rodrigo Duterte) for the rail project to see completion.Even now, it is only 55% complete.

The project's potential is extending the benefits of urbanization and progress to Bulacan province, by way of San Jose del Monte.The potential for huge revenues is clear.

So, the important event should prod the investors and retail traders, the fund managers, and analysts to send orders for the stock $:SMC, increasing its price.

Again, it was not to be.On Sept. 13, San Miguel opened at 117.40 and closed at 115.50 for a decrease of 1.90 or 1.62 percent.Its volume of 944.89K is a large, red elephant candle.

And to think that San Miguel just approved the payment of regular dividends of P0.35 per share on Sept. 9.So, there is still the presence of a dividends play as a long catalyst.

This really perplexes me. Can someone explain why the $:SMC behaves this way?

Calling TitoVlogs, Marvin, Palaboy Trader, Bilyonaryo.com, Merkado Barkada, April Lyn Tan, Chris Mangun, Nikki Yu, etc.

Feedback from non-readers is welcome at ports.reports@gmail.com.


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