Quick Take: House of Investments makes a move and 1 more market update
Vantage Equities [V 0.72 1.4%; 10% avgVol] [link] reported a Q1 net income of P417 million, up 359% from its Q1/22 net income of P91 million. V said that it was able to time the fixed-income market well, and used the PSE’s pump into the 6,800 level to “unload some of its holdings”. V’s trading gains were up 373% to P369 million.
MB Quick Take: While V is still relatively tight-lipped about its trading strategy and the tactics that it uses to grind out gains, at least we get the impression here that V isn’t just another boat that rises only when the other boats are rising, like CTS Global [CTS 0.83 1.2%; 98% avgVol] which is basically sitting on the sidelines in government bonds waiting for easier conditions. V is demonstrating that it’s possible for a trading firm to grind those gains in a sideways market.
House of Investments [HI 4.51 3.2%; 30% avgVol] [link] sold a 14.35% stake in its portfolio company construction firm, EEI [EEI 5.86 0.7%; 23% avgVol], to a company called Industry Holdings and Development Corp (IHD) which is owned by Francis Chua.
MB Quick Take: There’s always a public reason and a private reason for doing a thing, and I just wonder what the private reason is here for these moves by HI to dump its holdings in EEI. As it says, it’s retaining EEI as a “portfolio company”, but it seems quite interested to allocate its resources away from EEI. It says it’s looking to reduce its exposure to the construction industry, but that sounds like a public reason to me that was made to sound viable/plausible around some less marketable private reason. I’ve been receiving a few interesting takes from readers about what might be the driving force behind this reallocation, but nothing that I have independent corroboration on yet!
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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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