We have earlier commented that the COVID-19 pandemic had a significant adverse impact on the operations and finances of DMCI Holdings, Inc. (DMC) during the first half of 2020 (1H 2020) which resulted to a weaker financial footing for DMC as of end of 1H 2020.
The weakness in the results of DMC sent it shares plummeting to a low of 3.40 a share almost revisiting the 3.10 a share low at the height of the sell down in March 2020.
The Consunji’s took advantage of the weakness in the share price of DMC, accumulating DMC shares along the way. We have commented earlier that the Consunji’s private holding company, DFC Holdings, Inc., had accumulated a total of 55,425,100 DMC shares as of the end of August 2020. It appears now that DFC Holdings is not yet done accumulating DMC shares. For the first two weeks of September 2020, DFC Holdings bought 3,892,000 DMC shares.
The Consunji’s accumulation of DMC shares signals that they have the operational and financial expertise and the strong and deep relationship with its partners, bankers, and customers to navigate DMC through this uncertain time. Qualitative factors matters a lot in business.
Disclaimer: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent perspective. Accuretti Systems Inc. in the course of day to day trading may have own, or is considering buying or disposing, the shares of the companies mentioned in this commentary.