PSE gives final warning; TKC and Vantage to be suspended this morning
The Philippine Stock Exchange [PSE 200.00] [link] gave its final warning to TKC Metals [T 0.77 13.24%] and Vantage [V 0.70 10.26%] of the consequences for their continued reporting non-compliance: their stocks will be suspended this morning starting at 9am, and that suspension will continue until the required earnings reports are submitted.
The PSE specifically mentioned that 8990 Holdings [HOUSE 10.50 1.74%], Century Peak Holdings [CPM 2.78 0.36%], and Leisure & Resorts World [LR 1.28 3.03%] would not be suspended, after each company successfully submitted their earnings reports yesterday.
MB BOTTOM-LINE
It’s frustrating to follow this drama, and I’m sure (like me) that you are all somewhat tired of the “will they / won’t they” of it all.
Yet, the potential severity of continued non-compliance is very high, and to any investors that get caught in suspended stocks, it will feel like something of an investing version of an existential crisis.
On the one hand, the majority shareholders of these companies are right there in the same boat as the little shareholders, in that if the stock gets suspended, both majority and minority holders are suspended in the same way.
On the other hand, though, since the suspension only applies to the ability to trade the shares on the PSE, and not to the ability to sell the shares privately, the majority shareholders will always have more (and better) options available to sell their shares even if they’re technically suspended on the PSE.
Suspended shares can still be sold privately.
Yes, it’s a pain in the butt to do because it’s slow, uncertain, and expensive, but it’s possible, particularly when the block of shares for sale is large, and especially if that block is controlling.
Nobody is going to engage with Juanita D. Smalltrader with her 20,000 shares of TKC.
If the shares get suspended, she’s basically on her own. With all of this healthy IPO activity on the board, I hope the PSE is able to make some changes to reduce the need for investors to even have any concerns about the tradeability of their investments.
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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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