SMPH MANILA BAY REHAB | Marvin Germo

SMPH MANILA BAY REHAB

By: Marvin Germo | January 21, 2019

Manila Bay Sunset!

Manila Bay is considered as the best natural harbor of East Asia, the country’s biggest shipping ports as well as ferry terminals, fish port, and yachting marina.

If you are a tourist in Manila, one possible thing in your checklist is to see the Manila Bay sunset, and the best place to view Manila Bay’s sunset is at the walkway of the Mall of Asia (MOA).

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 Qatar —  February 5 – 10, 2019
Make Money, Grow Money (Manila) – February 13, 2019
Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila —  March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu —  April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore —  May 18 & 19, 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 Taiwan – November 2, 2019

SMPH and it’s take in Manila Bay

As you all know, SM Mall of Asia is owned and developed by SM Prime Holdings. And since being constructed on reclaimed land and opened on May 2006, SM Prime Holdings, Inc. is one of the three groups with green-lit reclamation projects to be started this 2019 to further expand its base along the MOA area. With this in mind, The Department of Interior and Local Government said that reclamation projects in Manila Bay should be pushed aside for the planned rehabilitation to succeed as reclamation projects in Manila Bay may threaten the remaining biodiversity in the already heavily populated body of water.

The stock’s volatility after the disclosure

On January 16, 2019, SMPH’s stock price dropped intra day to as low as 36 but bounced and closed at 37. The intraday volatility was caused by the negative sentiment that the rehabilitation of Manila bay will do should SM Prime Holdings plans to expand its base via reclamation be put to a halt. However, news like that can’t put a good company down, the next day after the sell down the stock surged with strong buying, followed by two more days of strong buying again bringing back the stock to the resistance at 40.

What does the technicals say?

Please remember the stock did not just drop because of sentiment last January 16, it dropped also because from a technical standpoint, 40 is a very strong resistance level. To add another layer of context to this, the only reason why it bounced after hitting 36 intraday, is because 36 is where the strong support is. So should the stock drop again tomorrow it would be primarily because it is at the resistance at 40. Should the stock breakout from 40 and hold its ground. From a mid term perspective, the stock now has a shot to to to 49.

If you are a position trader, the stock does not have a sell signal yet as the stock is still bullish for the long term.

A story worth following

This is a story worth following as it develops over the next few months. Will the reclamation project continue and increase SMPH’s growth or will the rehab block SMPH’s expansion? What’s your take?

I’ll keep you posted on this issue as it unfolds!

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