In the year 2011, Megaworld’s stock price has only dropped lower than 1.75 at only one time until today. It was when the Philippine Composite crumbled to 3,700 end of September to early October.
1.) September 23 – Oct 14, 2011 Historical Broker Transactions
Brokers that accumulated during the sell off were primarily Macquarie, Aurora, BDO, JPMorgan, Goldstar and Wealth with net buy transactions greater than Php10 Mil. The biggest sellers are coming from foreign brokers with CLSA at the helm, with DBP Daiwa, Deutsche, UBS and ATR-KE following with the selloff.
Without going to the possibility that the exercise of the warrants at Php1.00 being the primary trigger for the sell off in MEG’s stock price, let’s first check at the primary big sellers causing the large sell off. Below, I highlight the biggest sellers for the past two days on MEG, breaking the critical 1.78 support level of MEG with huge volumes, giving way to a big slide recently.
*Historical transactions from Dec.12-13, 2011
Notice in this sell off that CLSA and Credit Suisse were the first triggers of the sell off, selling huge truckloads at 1.76-1.78 leading other “followers of momentum”/ technicians to cut loss on their positions, hence BDO, Jaka, Macquarie and Deutsche’s selling prices are all selling shares lower than 1.75
Notice too in this sell off that CLSA is another big bulk seller in these low prices, same to the prior Philippine Composite sell off last September. Either CLSA, often sells MEG shares at a bargain, or does CLSA and CSUISSE know something? Can they be selling something fundamentally related?
Technically, the stock looks to retest its previous supports of 1.50-1.60 range.
*Another interesting thing I have observed is that CSUISSE has bought back 3M shares at 1.68-1.69 levels after selling a huge 30Mil position at 1.78, I’ll be watching what CLSA and CSUISSE does in the next couple of days, if I’ll be trading the stock MEG other than the charts.
What do you think?