Consunji cash cow Semirara Mining and Power Corporation (SCC) rose 4.47% in a single day

Semirara Mining and Power Corporation (SCC), the coal mining and coal power plant operator, has been Consunji’s primary cash cow.  SCC has been the primary cash flow generator of the Consunji group.  It is a 56.63% subsidiary of DM Consunji Holdings, Inc., the Consunji’s publicly listed holding company. A Consunji private holding company, DACON CORPORATION, also owns a significant interest of 12.75% in SCC.

The effect of the COVID-19 pandemic on SCC was significant. It cut more than half the net income of SCC during the first half of 2020.  Cash generated from operations was reduced to just 2.3 Billion in the first half of 2020 just some 20% from last year’s cash flow. Cash at SCC as of the end of the first half was at 3.8 Billion Pesos with short-term debt coming due at 8.2 Billion Pesos.

The severe effect of the pandemic on SCC tumbled its shares to its low of 8.30 from a 52-week high of 23.90.  Since then SCC share price has been trading around the 9 level.

Taking advantage of the weak share price of SCC, the Consunji through their private holding company DACON CORPORATION, has been amassing SCC shares.  In September 2020 alone DACON CORPORATION spent 57.5 Million Pesos buying SCC shares.

Then on October 9, 2020 trading SCC share price just shot up 4.47% to close at 10.74.  The 10.74 is still low and the DACON CORPORATION insider buying will continue.  The story tells that the DACON CORPORATION insider buying supports the shares up.

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.

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