$CAT: Price Soared Due to False Information?

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Central Azucarera de Tarlac, Inc. (CAT) rose by 36.39 percent with a total turnover value of P95.6 million on March 8, 2018. The all-time favorite question of many when they see a flying stock is, “Will it continue to soar by the next trading day?”

Anyone who asks that question does not use a trailing stop-loss (TSL). I use a TSL. I don’t burn extra calories thinking about the highest price a stock could reach. My TSL does me 3 Ps.

  • preserves my capital
  • protects my gains
  • prevents losses beyond my risk tolerance

Such question can be answered with an if-then scenario based on a data-driven analysis.

By the way, my team at the Stock Signals Philippines (a property of Equilyst Analytics, Inc.) included CAT in our Top 5 Gainers and Top 5 Losers Analysis in a video yesterday. If you’re one of our clients, please log into your dashboard and watch or listen to our fundamental and technical analysis of CAT.

CAT registered a new 52-week high yesterday. I’d like to use its weekly chart to plot its support and resistance levels. The major support is near 17.50 while the major resistance is near 76.

I’m sure you’re asking why there’s a big difference between the major support and resistance levels. The answer is simple. CAT un-organically climbed the price ladder.

The unusual price movement may have been caused by a false report which involves the proposed acquisition by Ayala Land, Inc. (ALI) of land owned by CAT.

Do you monitor the Disclosures section of your stocks? I suggest you do. I am not going to type here the information that you can read in the Disclosures section of CAT from edge.pse.com.ph. Click here to read the complete disclosure.

CAT may go back to the “normal” price range where it was prior to the confusion caused by the misleading report. So, you watch out. Click the chart below so you will see the price points of the lines I’ve plotted.

Central Azucarera de Tarlac, Inc. (CAT) - Weekly Chart - March 8, 2018

CAT’s volume rose unnaturally on the day the misleading information was “picked-up.”

Central Azucarera de Tarlac, Inc. (CAT) - Volume - March 8, 2018

These are the price points that got the most volume yesterday. I won’t advise you to focus on the strongest price points on the upper half of my Price-Volume Distribution chart because CAT may correct today. Focus on last week’s price points instead.

Central Azucarera de Tarlac, Inc. (CAT) - Price-Volume Distribution - March 8, 2018

Foreign investors know how to separate the wheat from the chaff. 🙂

On a 30-day trading period, CAT is on a Net Foreign Selling worth PHP4,260,450.00.

Central Azucarera de Tarlac, Inc. (CAT) - Foreign Fund Flow - March 8, 2018

Participants with a 100% Buying and Selling Activity from Jan-11-2018 to Mar-08-2018 at 03:30PM:

  • 3 out of 65 participants or 4.62% of all participants registered a 100% BUYING activity
  • 11 out of 65 participants or 16.92% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 37.8135
  • Top 10 Players’ Selling Average: 38.3105

Central Azucarera de Tarlac, Inc. (CAT) - Top 10 Players - Jan 11-March 8, 2018

Participants with a 100% Buying and Selling Activity from Mar-01-2018 to Mar-08-2018 at 03:30PM:

  • 3 out of 59 participants or 5.08% of all participants registered a 100% BUYING activity
  • 7 out of 59 participants or 11.86% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 40.1320
  • Top 10 Players’ Selling Average: 40.9032

Central Azucarera de Tarlac, Inc. (CAT) - Top 10 Players - March 1-8, 2018

Participants with a 100% Buying and Selling Activity from Mar-05-2018 to Mar-08-2018 at 03:30PM:

  • 3 out of 59 participants or 5.08% of all participants registered a 100% BUYING activity
  • 7 out of 59 participants or 11.86% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 40.3477
  • Top 10 Players’ Selling Average: 41.2992

Central Azucarera de Tarlac, Inc. (CAT) - Top 10 Players - March 5-8, 2018

Participants with a 100% Buying and Selling Activity as of Mar-08-2018 at 03:30PM:

  • 2 out of 52 participants or 3.85% of all participants registered a 100% BUYING activity
  • 7 out of 52 participants or 13.46% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 45.2039
  • Top 10 Players’ Selling Average: 45.1411

Central Azucarera de Tarlac, Inc. (CAT) - Top 10 Players - March 8, 2018

Are you a beginner in the stock market? Wait until CAT’s risk level goes back to its normal low to moderate risk level.

Central Azucarera de Tarlac, Inc. (CAT) - Risk Level - March 8, 2018

I’d like to hear from you. Could you write a comment at the bottom of this article and tell me what you’ve learned from me or what did you like the most about my analysis?

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Jaycee De Guzman

Jaycee De Guzman

I have helped thousands of Filipinos trade independently and invest profitably through the Equilyst Analytics, Inc. I have also helped hundreds of SMEs and Fortune 500 companies build and boost their online presence through iPresence Digital Marketing, Inc. Read my About Me page.
Jaycee De Guzman

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