For MPI Investors: MNTC-TMC Merger Approved
Jaycee De Guzman

Jaycee De Guzman

Hi! I'm Jaycee De Guzman. I'm an entrepreneur, an online business strategist, and an equity analyst among others. Excited to know more about my awesomeness? Here, read my About Me page.
Jaycee De Guzman

Manila North Tollways Corporation (MNTC), a Metro Pacific’s (MPI) subsidiary, is the concessionaire for both North Luzon Expressway (NLEX), Subic Clark Tarlac Expressway (SCTEX), and one of the original proponents for the Connector Road Project linking NLEX and SLEX. Tollways Management Corporation (TMC) is engaged in the operations and maintenance of tollways, its facilities, and interchanges and related works, among others.

MNTC’s board has approved the merger with TMC. The merger will be submitted to the shareholders of MNTC on November 2016. Merger will take effect 15 days after approval of Securities and Exchange Commission and the issuance of the Filings of the Articles of the merger. After the merger, MNTC will be the surviving entity.

Details of the merger is given below:

MPI - METRO PACIFIC INVESTMENTS CORP - Disclosure 1 - October 25, 2016

MPI - METRO PACIFIC INVESTMENTS CORP - Disclosure 2 - October 25, 2016

MPI - METRO PACIFIC INVESTMENTS CORP - Disclosure 3 - October 25, 2016

MPI - METRO PACIFIC INVESTMENTS CORP - Disclosure 4 - October 25, 2016

It is not expected that the merger will result in higher earnings for MPIC’s toll road business, but is expected to increase MNTC’s leverage capacity for its expansion projects.

Daily Chart

If you’re familiar with Fibonacci, you know that stocks find the 50% Fibonacci retracement as a candidate for a trend reversal. If you will zoom the chart below, you will see that MPI made a rebound at the 50% Fibonacci retracement near 7.00.

MPI is still moving above its 200-day SMA (long-term investors consider the trend bullish if the price is moving above this SMA).

Have you read my article entitled How I Use 10SMA and MACD to Identify Buy and Sell Signals? Last October 19, MPI closed above the 10SMA and MACD crossed above the signal line.

The 20SMA is still below the 10SMA. That means MPI is yet to enter the bullish trend on a short-term scale.

Depending on your conviction level, it’s either you test-buy while it moves sideways or you wait for volume to increase.

MPI must maintain its position above the immediate support near 7.10. If it breaches below this level, a double top pattern might be formed. If and when that happens, MPI might re-test the support near 6.50.

The resistance to break is near 7.58.

MPI - METRO PACIFIC INVESTMENTS CORP - Daily Chart - October 25, 2016

Top 10 Players

Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-21-2016 at 03:07PM:

  • 5 out of 92 participants or 5.43% of all participants registered a 100% BUYING activity
  • 15 out of 92 participants or 16.30% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 7.1704
  • Top 10 Players’ Selling Average: 7.1670

MPI - METRO PACIFIC INVESTMENTS CORP - Top 10 Players - October 25, 2016

Foreign Fund Flow

On a 30-day trading period, MPI is on a Net Foreign Selling worth PHP376,140,113.00.

MPI - METRO PACIFIC INVESTMENTS CORP - Foreign Fund Flow - October 25, 2016

Volatility

I consider MPI as a low-risk stock based on my proprietary indicator of stocks’ risk level.

MPI - METRO PACIFIC INVESTMENTS CORP - Volatility - October 25, 2016

Volume

MPI’s volume isn’t too low, but MPI must consistently print volume above its 30-day volume average for the price’s ascent to be sustainable.

MPI - METRO PACIFIC INVESTMENTS CORP - Volume - October 25, 2016

Do you like this update?

I do hope I was able to help you through my analysis and simplified interpretation of data. Always have a trailing stop-loss to preserve your capital and to protect your gains.

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