As mentioned in my previous post DMCI Holdings, Inc., the current outraged by no less than our President has a very minimal effect for DMC. In fact, it contributed 9.25% only to its net income.
In my opinion, most grounds that affect the depressed price of DMC are as follows:
1. Declaration of 400% stock dividends on 07-Nov-2014.
2. Declaration of 300% stocks dividends on 10-Oct-2017 for SCC.
3. Declaration of 200% stocks dividends on 24-Sep-2014 for SCC.
4. Declaration of 900% stocks dividends on 22-Nov-2004 for SCC.
5. Continuously contributed decreased income by its DMCI subsidiaries.
6. Deletion from MSCI Semi-Annual Review in November 2019.
7. DoE slapped Semirara Mining and Power Corp. (SMPC) with a suspension and financial penalty of PHP 1.735 million for violating its rules on coal trading, and
8. Political woes.
Most investors, looking forward to an investment that yields high cash dividends. But in my case, I regularly cashed-in and ran away without looking back once the company declared stock dividends. Why? stock dividend distributions dilute the existing shares, which means that the additional shares lower the price per share because the total value of the company is distributed across a larger number of shares. However, shareholders receive the diluted amount in the form of additional shares given as dividends and a total of 1,800% stocks dividends is a dead serious dilution.
Si President Rodrigo Duterte, nagbantang sususpindihin ang privilege ng Writ of Habeas Corpus para ipakulong ang mga may-ari ng Manila Water at Maynilad at tulad ng lagi kong sinasabi, kung magkatotoo, tanging panahon lamang ang makapagsasabi. Ang negosyo na tubig na pinasok ni DMC ay napakaliit lamang porsyento at ito ay hindi masyado nakakaapekto sa kita nila.
Ano ang kinabukasan na naghihintay kay DMCI Holdings, Inc.? nagbibigay pa ba ito ng magandang kita sa hinaharap kong ngayon ka pa lang papasok?
Para sa akin kung ang DMC may mananatili sa PSEi sa darating na PSE Index Rebalancing sa darating na Marso o Abril 2020 at kung makikita natin na si Consunji ay mag divest sa negosyong tubig at huwag pumasok sa ano mang kontrata sa gobyerno, maari ito ay makakabawe din sa mga darating na araw. Pero kung hindi, inaasahan ko na aabutin ang pinakamababang presyo na 2.00 noong ika 24-Nov-2008!
DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of these securities.
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