Answer to Joey on Megaworld

Sabi ni Boss Joey… What’s going on. Why foreign buyers dumping this stock? It seems a good stock, undervalued and low P/E.

Sagot ni spy … last dec 15 2011(?) MEG disclosed that its warrant can be converted to common shares na. after that may overhand na sa pric eng MEG coz bulk of those warrants was with AGI yata. way back when MEG was at 0.50/share, may right offering sila at 1 piso + warrant. only few subscribed (ob kors naman sino mag subscribe kasi 0.50 lang meg). anyways, since nun disclosure, any rally na ginawa ni MEG nauudlot lang, may selling pressure. we can only then make isip isip na baka nagbebenta na yun (your guess is good as mine). the meg warrant was free with a strike price of 1 peso. so the cost of converting it is only one peso. So kahit e dump pa nila yun sa 1.50, they still gain a hefty load of ____. not bad for some _______ jargon.

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