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By: Marvin Germo | May 6, 2019

Ayala Corporation As One Of The Most Actively Traded Stocks

Last week, Ayala Corporation (AC) shares have been one of the most actively traded stocks in the market. A total of 1.204 million shares equivalent to P1.089 billion were swapped in the trading floor in a span of 5 days, from April 29 to May 5. On Friday, the AC shared closed at P900, up by 0.6% if we compare to its P895 per share last April 26. So, what triggers the investors to snap up the shares of Ayala Corporation? Is it something worth investing for?

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Singapore —  May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila —  June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Ayala Corporation’s Plan For Expansion

The major reason why investors are buying Ayala Corp. stocks is because of its expansion plans. Right after disclosing the plan to expand, investors move to snap up the shares of the said company. It’s pretty obvious that the firm has been really hostile for the past few months while acquiring good companies like iPeople, Inc. and Phinma Energy. These acquisition are meant to increase its non-core assets. Apart from that, the firm also initiated a venture capital fund to invest in technology globally just recently. The recent level up of the credit rating of the country also triggers the investors to invest in Ayala Corp.

Value Play For Investors 

The trading of Ayala Corp. stocks seems like a value play for investors. Investors bought the stocks at a bargain considering that the firm has been moving sideways since Mitsubishi Corp. cut its shares from AC. The recent credit rating upgrade also serves a big role in this play. From BBB credit rating, Philippines has just received a BBB+ from S&P Global. The debt watcher is looking forward to the country’s economy for the next 6 months to two years as this is the current assessment of the PH economy. According to them, our economy is going to be stable for the next months and it is likely to stay at BBB+. This provides a greater outlook for Ayala Corp. and its investors.

AC Energy and AC Education

The acquisition of Phinma Energy by Ayala Corp.’s energy unit, AC Energy, will be completed soon with its mandatory tender offer to the minor stakeholder of Phinma. The target date is within the second quarter of the year. The firm would subscribe to Phinma’s primary shares prices at about P2.632 billion, which will then equate to 68% total stake. Meanwhile, Ayala’s education unit, AC Education, Inc., have merged with iPeople last May 2. Ayala now owns 33.5% of iPeople while the House of Investment, Inc. (HI) owns 51.3%. iPeople has a total value of P15.5 billion at the time of merger.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
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