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Juan Liners: Dragons Rising, Sugar Rush and Cementing Global Domination(3-min read)

Some interesting stocks news on dragons, sugar rush and cement.

Game of Thrones Season 4 premiered this week and we get to see once again Daenerys’ lovely….. dragons, among others. Bilbo still has his own dragon (to conquer), Smaug, which I think is scheduled for December this year.

Daenerys Targeryen bust. by PatLoika, on Flickr

In PSE, two dragons made its fiery debut, also this week: DoubleDragon Properties Corp (PSE: DD).

DoubleDragon Rises
When news came out that DD will make an IPO, I was pretty much interested at the onset (even though I generally stay away from IPOs). DD is actually a joint venture by Edgar Sia II (founder of Mang Inasal) and Tony Tan Caktiong (of Jollibee Corp, and now majority owner of Mang Inasal), both born on the Year of the Dragon (hence the name). Aside from residential and condominium development, DD is also into making community malls, dubbed as CityMalls, focused in Visayas and Mindanao areas. Company prospect is good, sort of market nicher tapping into unchartered territories where the big boys dare not go (yet). The prospect is so good that even big-league player SM is now minority owner of the company!

Imagine the synergy here, of retail/community mall developer partnered with mall magnate and restaurant giants! Steady supply of tenants I’d say.

The initial offering was expectedly uber-subscribed that COL Financial even had to raffle off the limited shares to too many interested retail investors. Yours truly was not fortunate enough to win, and so I tried my luck in the IPO itself last Monday.

Offer price was PHP2.00, but buying started at PHP2.40 and closed at PHP3.00, a 50% increase on opening day. 50% was actually the ceiling for the day, otherwise it would have gone up further. The next trading day, DD easily breached PHP4.00 (+33%) to a high of PHP4.42, before closing at PHP3.86. Price movement was crazily fast that I did not want to get caught in the mix and market emotions on this new crush.

Will just wait and see if there will be an opportunity for me to hold those dragons. Who knows.

Sugar Rush

Speaking of new crush, Biz Buzz dubbed it last Monday as ‘sugar showdown’ but I prefer to call it sugar rush, after a popular game Candy Crush. On Monday, it was reported that MVP is making moves to gain a bigger ownership of Victorias Milling Corp (PSE: VMC), the largest sugar firm in the country. Though forums have been abuzz with this move for quite some time already.

candycrush_zpsa97281e8.jpg

Although shares committed to MVP is still not enough to gain majority ownership (e.g. like 7% only from Metrobank group, if indeed they have agreed already), this MVP-move seems to have prompted another silent substantial owner, Lucio Tan group, to up the defense from being “nonchalant” previously.

And so just yesterday, it was reported that Kapitan’s group (PSE: LTG), has already consolidated its hold on VMC, doubling its owneship from 7% to 14% via actively buying VMC shares in the open market. Will there be further sugar rush in the coming days as MVP and Kapitan race for more sweets?

VMC closed yesterday at PHP4.66 but started 2014 at PHP2.00. Sugar rush indeed!

Cementing Global Domination

International cement giants recently inked the deal to merge. Switzerland’s Holcim and France’s La Farge will soon be known as one company, Le Figaro. And then?

194/365 - Lesney Matchbox No. 21: Foden by puuikibeach, on Flickr
Well, both have Philippines operations and are listed in PSE. While Holcim (PSE: HLCM) and La Farge (PSE: LRI) have yet to disclose on what happens to their local operations, the market, forward-looking as it is, seems to have already priced in this development since Monday. The merger is looked upon favorably since this eliminates competition and makes the merged company virtually the biggest supplier of cement worldwide. Itaga mo sa semento!

LRI recently moved from sub-PHP9.50 to close at PHP10.42 yesterday, even reaching a high of PHP10.98. HLCM meanwhile, generally sideways since last year, was more tame, reaching PHP14.10 before closing down at PHP13.50.

Exciting times.


Related Articles:
DoubleDragon Sharply Higher on Debut
Holcim, La Farge announce Merger into Cement Giant


Photos: 
Daenerys Targaryen Bust by  PatLoika 
Image by  David Guo’s Master 

194/365 – Lesney Matchbox No.21: Foden Concrete Truck by  puuikibeach 

Creative Commons Attribution 2.0 Generic License

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