Without regards to the ghost month, Henry “Big Boy” Sy Jr. disposed 6.5 Million SM Investment Corporation (SM) shares to the market in the month of August up to the first week of September 2020 raising 5.7 Billion Pesos.
Big Boy’s selling spree briefly sent SM shares to a low of 810 a share making true the belief that shares go down during the “ghost month.” Those that have paid attention to Big Boy’s SM stock movement, must have taken advantage of the dip in the share price of SM during Big Boy’s disposal of SM shares. After Big Boy was done selling, SM shares soared to a high of 937 a share on September 15, 2020 trading.
If one was able to time it perfectly, buying at 810 a share and selling it at 937 a share could have generated a return of something like 15.7% in just a matter of few days. Well, that was it.
What could Big Boy be doing with his 5.7 Billion cash? The 5.7 Billion cash is on top of the 30 Million SM shares he transferred to his company which as of September 17, 2020 closing is valued at around 27.2 Billion Pesos that can easily be used as security to raise funds.
The Sy family has interests in education and cement. Those sectors are heavily battered by the current state of affairs pushing those sectors into attractive valuations.
Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent view point. 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. Accuretti Systems Inc. bought and sold SM shares during the period mentioned in this commentary.