Wednesday, November 24, 2010

Random PSE Musings - Is the San Miguel Party Over?

For the first time in 10 trading sessions, SMB finally went red, closing at 25.00 pesos, or down by -7.6%. While this is not totally unexpected, the actual decline came to be a surprise, as SMB went as high as 31.90, before turning about face, and crashing down. With its very volatile move earlier today, at least SMB has established an immediate support level at 22.50, and could consolidate between this level and 31.90 for the time being.

Still, the next few sessions will be crucial, as we still have to know if the 22.50 support level can be held. If not, then expect another bloodbath for this issue, and can go as low as 18.00 as its next target.

While PCOR managed to hold on to its gains and close at 10.10, it still is a far cry from its day high at 11.80, also burning a lot of investors in the process. LIB even joined the party early on, but this also closed far from its daily trading high.

Now, rumors has it that SMC, the parent company, is planning to offer secondary shares to the investing public next year, offering SMC shares between 150-200, which could probably explain why SMC-related stocks are moving northwards simultaneously. Well, it is up to you if you want to join the San Miguel party, or just look away, thinking that the party is over. 

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