MPI TO ACQUIRE TWO MORE LOGISTICS FIRMS | Marvin Germo

MPI TO ACQUIRE TWO MORE LOGISTICS FIRMS

By: Marvin Germo | January 21, 2018

Adding to its logistics stockpile

Metro Pacific Investments Corporation, disclosed it will acquire at least two logistics companies this year. MVP expressed that it plans to invest more in the logistics side and ride the growth of the Philippine economy.

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.

With its P100 billion CAPEX budget for 2018, MVP expressed that 6% shall be allocated for further investments in its logistic business. Their logistics arm has interests in logistics, warehousing, courier express, parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage, and domestic shipping.

In terms of Metro Pacific’s current earnings, its logistics along with hospital and other businesses, contributes only 5% to its bottom line. This 2018, the company wants this to be a major contributor to the its total earnings because previously, its power segment via Meralco, was the largest contributor standing at 52 % followed by toll roads at 23%, and lastly water, via Maynilad, at 15%.

The company engaged in the logistic industry back in 2016 when it acquired Basic Logistics Corporation’s assets for P2 billion which was then transferred to Metro Pacific Movers Inc. It also acquired Ace Logistics Inc. in 2017 for P280 million since it has a strong presence in pre-delivery inspection in the automotive industry which the company intends to expand. Alongside this, it invested P2.45 billion in acquiring the small players in the industry namely A1 Move Logistics, Marketing Enterprises, Philfalsh Logistics Inc., and BasicLog Trading.

Technicals

The stock is currently sideways with a tradable range of 6.30 – 6.90/7. Buy as close to 6.30 every time in bounces there and take profit at 6.90/7. If the stock fails to hold 6.30, it could drop to 6. If it breaks out of 7, the first target price could be pegged at 7.70

MPI technicals

New book and other books on Investing, Business and Finance.

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
Stock Smarts Book