Aboitiz Power Case Analysis
How many people have you heard that said: “I wish I could have bought AP way back 2007 at P6”?
Instead of wishing something that will never happen (i.e. turning back time), let’s examine why AP increase from P6 to P35 and moved sideways from thereon so that through this analysis we will learn something that we can apply for future stock purchases.
The breakdown of our problem is:
- Why AP increased from P6 to P35 in 2007 to 2010?
- Why AP price moved sideways from thereon?
Why AP Increased From P6 to P35 in 2007 to 2010 and Traded Sideways Thereon?
In order to answer the problems, much insight can be derived from the following relationships:
Based on the charts presented above, the following can be observed:
- Capacity of AP’s power generation increased before price jumped from below P10 to P30’s level.
- The substantial increase in generation capacity was…
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Entry filed under: Phisix's Closet (PSEi).