APL’s announcement that its subsidiary, JDVC Resources Corporation (JDVC), is currently mobilizing to commence production of magnetite iron ore this month of February, is no hype.
It can be seen from the insider trading of significant shareholders that the offshore mining of magnetite by APL is a real deal. Significant shareholders, directors, and management were not tempted to sell any of their shares despite the stratospheric rise of the share price of APL. Except for a director who cashed out 35,100,000 APL shares at 0.075 a share for a total of 2.6 Million Pesos.
Despite the significant rise in APL share price, APL could still be undervalued relative to the present value of the magnetite iron ore reserves in its 1,897 hectares offshore mining tenement.
The actual value of APL per share could be determined by the share price that the significant shareholders will be selling. When significant shareholders are tempted to sell at a certain price that only means that that price has priced in all the value of the mining and selling of all the minerals. It means that it is better to sell the shares at that price than doing all the hard work of mining and selling the minerals which in the end would yield the same by selling the shares at that selling price.
So far APL has reached a high of 0.475 a share but significant shareholders have not yet been tempted to sell.
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This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.