Since Del Monte Pacific Limited acquired DMFI in 2013, its capital structure changed. During the early stage of the acquisition announcement, the market received it positively. After releasing to the public the firm's financial statements with negative returns, its share price started to decline. The firm stopped paying dividends to shareholders. Many investors left this stock. It was during its decline that this stock got my attention and so I researched for its cause. After reviewing the annual and quarterly reports of the company, I am still cautious. I think if DMPL will be able to digest DMFI, it will grow more than 4x its previous size. That would mean, its share price could jump from 12.68, its current price to above 40.00. There is no better time to buy this stock than now. Still the crucial part is the release of its 4Q FY2015!
1. Trade Summary
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Update as of July 1, 2015
1. Trade Summary
Lowest Price: 11.56
Highest %: 67.25% @ 12.00
Average: 11.92
Volume: 531,200
Number of Trades: 91
Net Foreign: 5,385,872.00
2. Personal Interpretation
What do these numbers mean? The way I see it though the volume and the number of trades are still small, but this could be a signal of a reversal. If my memory serves me right, I think for 6 months DMPL's price just ranged between 10.70 to 13.50, a big drop from 27.05 in May 2013 due to DMFI acquisition. Another thing to notice is the entry of CLSA just today. Between June 15 to June 30, you cannot see CLSA trading DMPL. Unlike ATR Kim, which I consider an "early bird," CLSA is just waiting for the release of 4Q FY2015 before making a decision. As of today, July 1st, due to impressive improvement in DMPL's financial standing, CLSA is the biggest solid buyer with a net amount of Php 3,600,000.00 followed by ATR KIM, Php 1,102,004.00.
Volume: 300,400
Buy Amount: 3.8M
Average: 12.67
Volume: 120,000
Buy Amount: 1.5M
Average: 12.67
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July 2 Update
Lowest Price: 12.00
Highest %: 56.58 % @ 12.70 (This is a good sign from 12.00 with highest % yesterday).
Average: 12.65
Volume: 584,400
# of Trades: 160
Net Foreign: 5,731,084.00
Notable Buyers:
1. ATR KIM
Buy Amount: 3.8M
Average: 12.67
2. UOB KAY HIAN
Buy Amount: 1.5M
Average: 12.67
3. DEUTSCHE
Volume: 62,500
Buy Amount: 786K
Average: 12.58
Notable Sellers:
1. The First Resources Man
Volume: 223,000
Buy Amount: 2.8M
Average: 12.67
2. PH Equity Partners (PEP)
Volume: 160,300
Buy Amount: 2M
Average: 12.69
3. BPI SEC
Volume: 51,100
Buy Amount: 643K
Average: 12.59
Comment:
The volume slightly increased compared to yesterday's trade. As for number of trades, 69 more were added. What I consider a good sign is the increase in average price in trading DMPL. I missed CLSA. Was it done buying and waiting for an exit price?
What I want to see in the coming days is the doubling or even tripling of volume and the number of trades. How I wish DMPL will return to its previous price of 27.05. But I think, it will take another quarter or if not the whole FY 2016 to convince investors that DMPL has returned to profitability. For now, as a trader of stocks with fundamentals, what I am guarding is unusual market volatility caused by uncertainty among investors and traders alike related to the possible increase of interest rates. In the meantime, I think I will guard the movement of the above 4 brokers to determine my own exit price: CLSA, ATR KIM, UOB KAY HIAN and DEUTSCHE.
Comment:
The volume slightly increased compared to yesterday's trade. As for number of trades, 69 more were added. What I consider a good sign is the increase in average price in trading DMPL. I missed CLSA. Was it done buying and waiting for an exit price?
What I want to see in the coming days is the doubling or even tripling of volume and the number of trades. How I wish DMPL will return to its previous price of 27.05. But I think, it will take another quarter or if not the whole FY 2016 to convince investors that DMPL has returned to profitability. For now, as a trader of stocks with fundamentals, what I am guarding is unusual market volatility caused by uncertainty among investors and traders alike related to the possible increase of interest rates. In the meantime, I think I will guard the movement of the above 4 brokers to determine my own exit price: CLSA, ATR KIM, UOB KAY HIAN and DEUTSCHE.
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