A Must-Read for All ALTERRA CAPITAL PARTNERS (ALT) Holders (plus a bonus Technical Analysis)
Jaycee De Guzman

Jaycee De Guzman

Hi! I'm Jaycee De Guzman. I have helped thousands of Filipinos trade independently and execute investment plans profitably through the Stock Signals Philippines. I have also helped thousands of international clients and businesses from 100+ countries build their online presence and boost their sales through iPresence Business Solutions. Read my About Me page.
Jaycee De Guzman

You must read this report if you have ALTERRA CAPITAL PARTNERS (ALT) so you don’t get shocked on what is bound to happen.

In a disclosure to the Philippine Stock Exchange, Alterra Capital has informed the Exchange of their amendment of their Articles of Incorporation. The amendment is in conjunction with the change of control and management of the company. The company perceives the change in name as beneficial because of the brand name recognition of Philab. The change of secondary purpose to include the power to guarantee is being made to enable the company to financially support or lend its financial standing to its subsidiaries for capital-raising purposes.

The change in address is also in connection with the change in control and management. The company is seen to benefit from the use of the facilities already in place in the said office.

There is also a stipulation of the denial of pre-emptive rights. Pre-emptive rights are rights of existing shareholders to purchase additional shares whenever the company conducts new offering of their sales. Existing shareholders are given the right to purchase proportionate shares as to not dilute their current holdings. They may choose to avail of their right or forfeit such right. With the denial of this right, existing shareholders might run the risks of getting their shareholdings diluted.

The company, however, views this as a positive stipulation since they would be able to raise capital in an faster manner through private placements, placing and subscription transactions, and even public offerings.

The change in par value is seen by management to improve liquidity since total number of shares would increase from 400 million shares to 8 billion shares after the change takes into effect.

The change in the authorized capital stock was increased to accommodate future offerings for future growth opportunities.

Here is a complete list of the changes that will take effect after the amendment:

  1. Change of corporate name from “Alterra Capital Partners, Inc.” to “Philab Holdings Corp.”
  2. Change of secondary purpose to include the power to guarantee
  3. Change of principal office address to the 8th Floor 1128 38th Avenue, Fort Bonifacio Global City, Taguig City, Metro Manila
  4. Denial of pre-emptive rights
  5. Change in par value from Php0.05 to Php0.25
  6. Increase in authorized capital stock from P20 million to P2 billion

Notable changes immediately on the name change:

  1. Change in stock code (No details yet)
  2. Your existing number of shares will decrease by a factor of 5. (e.g. from 500 shares to 100 shares).
  3. Stock price the day before the name change will increase by a factor of 5. (e.g. If the price the day before the name change is 3.56, the price on the next day should adjust to 17.8).

Let me give you some bonus pieces of information. Treat this as a preview of how my team and I provide a data-driven support to our clients in the Stock Signals. In the Stock Signals, our goal is not to mesmerize you with our skill in interpreting charts and numbers. Our goal is to interpret the complicated world of the stock market in the simplest way possible. We want to help you build your self-confidence and say to yourself, “A day will come that I can also talk and think like how the analysts of the Stock Signals do.”

Daily Chart

While ALT is closer to its resistance (near 3.75) than to its support (near 2.60), volume has been low since the past 7 trading days. If you are familiar with the price-volume relationship, you know that the ascent of price is highly likely to be sustained if volume is high.

On the other side, MACD is bullish. The price is moving above the 10SMA, and the 10SMA is moving above the 20SMA. On a short-term time horizon, I’d say that  ALT is in a bullish state. On a long-term scale, ALT must go beyond 4.10 to re-enter the bullish territory.

Know that ALT consolidated between the support and resistance levels I’ve mentioned for more than 15 months (January 2015 to March 2016). ALT moved back in that range last September 2016.

ALT - ALTERRA CAPITAL PARTNERS - Daily Chart - October 21, 2016

Top 10 Players

Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-21-2016 at 03:30PM:

  • 3 out of 72 participants or 4.17% of all participants registered a 100% BUYING activity
  • 12 out of 72 participants or 16.67% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 3.4390
  • Top 10 Players’ Selling Average: 3.4541

ALT - ALTERRA CAPITAL PARTNERS - Top 10 Players - October 21, 2016

Foreign Fund Flow

On a 30-day trading period, ALT is on a Net Foreign Selling worth PHP3,980,850.00.

ALT - ALTERRA CAPITAL PARTNERS - Foreign Fund Flow - October 21, 2016

Volume

Do you see how volume fluctuates? ALT must stay above that  red line (30-day volume average) to increase the chance of breaching its resistance level.

ALT - ALTERRA CAPITAL PARTNERS - Volume - October 21, 2016

Volatility

ALT is a high-risk stock based on my proprietary risk level indicator.

ALT - ALTERRA CAPITAL PARTNERS - Volatility - October 21, 2016

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