SMPH

[Mr. Banker]

i apologize ahead for the noob question im about to ask.. if i sell tom (exdate), regardless of the time, i still get my divs on june 20?

Yes

[spitzserfun]

Was not able to sell my SMPH. If our market continues to be very weak this week, hope this doesn't go below 12-12.25.

[moneyball]

Weird. How is it that COL shows SMPH to be up 2% today while PSE shows this to be down 18%?

[KennethCole]

Weird. How is it that COL shows SMPH to be up 2% today while PSE shows this to be down 18%?

COL already incorporated the price adjustments for the 25% stock div at the opening.

[investor_fernan]

Thanks Mr. Banker for the heads up on price expectation.

I noticed though that SMPH has been on the top ten Net Foreign Sell over the past week or so. Are funds averse to stock dividends ? I would suppose that PE ratio should remain constant - ie earnings as constant, more shares offset by lower price. Of course, market sentiment or valuation not considered in my simplistic assumption.

Any comments / views would be most welcome.

Nagkataon lang siguro that funds are on a lightening up mood due to current weak market, friend Legacy. In a neutral or weak market, it takes some time to get back entire invested capital together with accumulated paper gains as you have to wait for the distribution date of the stock dividend following the adjustment in price at ex-date. The time gap additionally exposes a fund to a reduction of accumulated paper gains in a prevailing weak market.

Yes, there is no effect on PE under the assumption that the price will just proportionately adjust to the additional shares distributed.

Ibig mo ba sabihin Mr. Banker after ng distribution date babalik ang price ng SMPH to 16 which is today priced around 13. If I will going to add some more it is best to add today and sell after June 20 when its priced return to 16.

Tama po ba yon Mr. Banker?

[AngDRAGON]

If you will notice, sa COL, adjusted na ang price with respect to market capitalization and no of outstanding shares.. so Mr banker means babalik yung shares mo (paper loss) sa June 20 but not necessarily the price.. depende pa rin sa market sentiments...

[Mr. Banker]

Thanks Mr. Banker for the heads up on price expectation.

I noticed though that SMPH has been on the top ten Net Foreign Sell over the past week or so. Are funds averse to stock dividends ? I would suppose that PE ratio should remain constant - ie earnings as constant, more shares offset by lower price. Of course, market sentiment or valuation not considered in my simplistic assumption.

Any comments / views would be most welcome.

Nagkataon lang siguro that funds are on a lightening up mood due to current weak market, friend Legacy. In a neutral or weak market, it takes some time to get back entire invested capital together with accumulated paper gains as you have to wait for the distribution date of the stock dividend following the adjustment in price at ex-date. The time gap additionally exposes a fund to a reduction of accumulated paper gains in a prevailing weak market.

Yes, there is no effect on PE under the assumption that the price will just proportionately adjust to the additional shares distributed.

Ibig mo ba sabihin Mr. Banker after ng distribution date babalik ang price ng SMPH to 16 which is today priced around 13. If I will going to add some more it is best to add today and sell after June 20 when its priced return to 16.

Tama po ba yon Mr. Banker?

What I meant by distribution date is the date when you receive your stock dividends and can sell them which is June 20.

Thus, explaining anew my answer to friend investor_fernan, funds that wanted to encash their paper gains sold before ex-date because... if they waited for ex-date, the price of the stock mwill adjust downwards..and they cannot recover their entire capital and paper gains that they wanted to encash right away. They can only recover these in full when they receive the stock dividends. Meantime, the time gap between ex-date and stock dividend distribution date exposes them to both a further reduction in cost as well as improvement in price.

Meantime, COL's adjustment at open today (12.70) was due to the increase in shares even if the stock dividends will only be there by June 20. In turn, the actual price at close today of 12.90 already includes both market dictated adjustment in price to cover both the cash dividend and the increase in the number of shares as well as an improvement in the price of the share given today's favorable sentiment. Future price behavior shall henceforth be decided purely by market sentiment on the stock and has nothing to do whatsoever with anything that will bring it back to 16.

Please advise, if clear..if not I will try to explain best way I can in a different way.

[investor_fernan]

Very clear mga sir.

Thanks again Mr. Banker & AngDragon.

[AngDRAGON]

Salamat din Mr Banker sa mga 'substantial' advices mo.. Tingin ko tataas pa c SM prime and di na bababa sa 12.7, d pa kasi feel nang investors ang supply ng additional stocks...so till june 20, pwede pang maghold and wait & see...just keep my finger's cross..

[Legacy]

We are with you in our hopes for gains in our equity investment. Of course, mommy market will dictate and we will decide accordingly.

Thanks to Mr. Banker for guiding us. May your tribe increase, and may we all pay it forward when we get the chance.

Cheers.

[Mr. Banker]

Thanks for the kind words, friend Legacy.

Yesterday, I noticed that SMPH was being sold down a few minutes before close...only to be propped up to end unchanged. Personally, I have kept some shares as I still want to grow their small earnings.

Given current market volatility, let's all keep alert classmates.

[KennethCole]

Credit Suisse attempted to close at 13.96 with 700k shares during the pre-closing bids! Same broker that propped up the stock yesterday. Hope they continue to buy to neutralize Daiwa and JP Morgan's selling.

[Mr. Banker]

Now touching 13...hope it can pass it!!!