Semirara is lower because of the 300% stock dividends that it gave out. This post and video will explain why it is down and also answer some of the questions you sent me about the stock dividends.
I woke up today receiving hundreds of messages (ask marvin) asking if there is something fundamentally wrong with Semirara. If this had something to do with the death of its founder DM Consunji or if it had something to do with Duterte’s announcement that he dislikes open pit mining. I hope this post would help shed light to your questions and give you a stronger conviction and understanding of the markets.
My greatest desire is to see every Filipino profitable in the stock market. I know it can be done and I hope every Filipino takes part of this movement forward!
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 Manila — September 16 & 17, 2017
Stock Smarts Cebu — September 30 – October 1, 2017
Stock Smarts Davao — October 20 – October 22, 2017
Stock Smarts Malaysia — November 4 – November 5, 2017
Stock Smarts Sydney, Australia — November 11 – November 12, 2017
Stock Smarts Qatar — November 16 – November 19, 2017
Stock Smarts Singapore — November 25 – November 26, 2017
Stock Smarts Taiwan — December 21 – December 22, 2017
Stock Smarts Cagayan De Oro — January 13 – January 14, 2018
Stock Smarts London, United Kingdom — January 26 – 28, 2018
Is there something wrong with the stock?
Ryan L. Nurse, (London, United Kingdom)
There is nothing wrong with the stock. It’s just that the company gave out a 300% stock dividend. This introduces so many shares to the market that the value of each share goes lower in the same proportion to the number of shares listed.
Semirara is now lower, is it cheaper?
Mark B., Engineer (Sydney, Australia)
That’s the misconception about stock dividends. It does not make the stock cheaper. Not at all. The stock is just lower because of the increased number of shares disbursed but it does not make the stock more valuable. It actually is at the same place from where it was prior to the time the stock dividends were released.
Should I buy SCC now because it is lower?
Sheila J., Oracle Consultant (Anaheim, California)
Again, the stock is just lower, it does not mean it is cheap. Don’t buy the stock just because it is lower, buy the stock because the fundamentals and technicals dictate that it is worth buying.
Do you like stock dividends?
Patrick K., Team Leader (Makati, Philippines)
I personally don’t. I really think it just dilutes the stock and it gives a false notion that you are earning money. I like cash dividends more because it adds something to my pocket.
I did not receive my extra shares yet? Should I panic?
Marie D., Telecom Engineer (Singapore)
That’s normal. You have to wait for the payment date before you receive the shares. To qualify you should have owned the stock before the ex-date.