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Stock Commentary

Raslag insiders and affiliates still buying up shares

Merkado Barkada
Raslag insiders and affiliates still buying up shares

Raslag [ASLAG 2.11 0.94%] [link] disclosed that both its President and director have continued buying shares in the company post-IPO, this time through another ASLAG affiliate, T.G.N. Realty Corporation (TGN).

The disclosure shows that TGN bought 2 million shares on June 27 for P4.2 million, and that both ASLAG’s President, Peter Nepomuceno, and ASLAG’s director, Arsenio Valdez, had their indirect ownership of ASLAG increase as a result of their own ownership stakes in TGN.
 

MB BOTTOM-LINE

Most of TGN’s purchases came at P2.10/share, which keen-eyed Barkadans will note is the first real push from this group at a level that is actually above the IPO offer price of P2.00/share.

While the current price above the IPO offer keeps the stabilization fund manager, China Bank Securities, on the sidelines, the ASLAG ownership group is still able to claw back these shares that they just sold to the general public, even if their goal is simply to “make the price go up.”

That said, TGN only bought around P4.2 million worth of ASLAG shares on a day when over P67 million in ASLAG shares traded hands, so it’s not like Peter Nepomuceno and Arsenio Valdez were driving the bus on June 27th by being involved in a proportionately huge number of ASLAG trades.

Still, any of these little “pushes” that the stock gets from any of their insiders and affiliates will have an impact on the market value of their entire stake. Mr. Nepomuceno’s company, J Ten Equities, holds 863 million ASLAG shares.

If TGN’s purchases push the ASLAG share price from P2.08 to P2.13/share, as they could have on June 27th, that’s a P4.2 million spend to receive a P47 million gain.

And that’s only for J Ten Equities’ stake in ASLAG; it doesn’t say anything about the growing stakes that have been acquired over the past couple of weeks by other ASLAG affiliates like the Borealis Corporation and the Wespan Development Corporation.

Again, the point here isn’t to make the case that Mr. Nepomoceno and Mr. Valdez are doing something wrong, only to show readers how their actions impact the value(s) of their other private holdings in the company.

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

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RASLAG CORP.

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