Amidst the recent good performance of SCC or Semirara Mining and Power Corporation over the past few months, many stock holders were in shock as it opened today to an almost double of it’s 52 week low of Php24.99.
SCC opened at Php49 from last close of Php179, which is 73% downfall from a previous close of Php179!!
Certain sources said this could be attributed to the recent death of Engr. David M. Consunji (fondly called as “DM”), founder of the DMCI Group of Companies, former Chairman of the Board and Chairman Emeritus of Semirara Mining and Power Corporation.
DM passed on around noontime yesterday (September 4, 2017) surrounded by close family and relatives.
A beloved husband and father, DM built landmarks and redefined cityscapes for generations of Filipinos. He transformed the local construction industry by valuing not the quick profit but the satisfaction of doing one’s work well, honestly and proudly.
His remains lie in state at the Capilla de San Francisco of Santuario de San Antonio Parish, McKinley Road, Forbes Park in Makati City. Our deepest condolences to the family.
Although this happened a week back, we know that there are some delays on how these kind of news impacts the market. Since the stock market is driven by the emotions of its investors, the delay of the news reaching the large amount of investors and the delay of the reaction of the people to the news, it is only but now that we have felt its real impact.
On another note, some reports said that this can also be attributed to the recent typhoons that has hit the country. And since SCC is engaged in Mining and Power, it is but obvious such natural calamities and disasters can easily impact the business.
But if you will check closely and do your research, you will see that there is nothing to worry about. A 300% dividend as shown below has reached its ex-date.
Basically, it is called a “stock split”. What it means is that, a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total peso value of the shares remains the same compared to pre-split amounts, because the split did not add any real value.
The most common split ratios are 2-for-1 or 3-for-1, which means that the stockholder will have two or three shares for every share held earlier.
Cheers and happy investing!!