Insider’s conviction APL vs. ACEN

AC Energy (ACEN) and Apollo Global Capital (APL) are two companies that are venturing into exciting new industries. ACEN is investing in renewable energy while APL will be venturing into offshore iron ore mining.

Both companies have seen their share price going up to the moon. In a one-year period ACEN is up around 308% while APL is up around 485%.

Let’s see the convictions of the insiders in their respective companies through the lens of insider selling. If one believes that the value of his shareholdings can rise beyond what the market has offered, then one would never sell. It is natural for one to sell if one thinks that the market is already valuing his shares fully.

In the case of APL only one insider has shed his shareholdings in the past six months. An APL insider sold shares valued approximately at 2.6 Million Pesos. Shareholdings of controlling stockholders remained intact.

At ACEN, in the past six months insiders have been shedding shareholdings worth around 68.2 Million Pesos. An insider was even able to dispose 400,000 of his shares at a high of 10.44 a piece.

In fairness to the ACEN insiders, they have scooped ACEN shares at the recently concluded stock rights offering at 2.37 a piece.

While controlling shareholders of APL have kept their APL shareholdings intact, ACEN’s parent is liquidating a portion of its stake in ACEN through a deal with Arran Investments. Arran Investments is a unit of GIC Private Limited, one of the sovereign wealth funds of the Republic of Singapore. ACEN’s parent company will be selling ACEN shares to Arran Investment at 2.97 a share. In that deal, ACEN’s parent company is accepting a share price for ACEN shares way below what the market has set as price of ACEN shares.

This analysis is an independent viewpoint on publicly traded stocks in the Philippine market.  Accuretti Systems Inc. trades stocks in the Philippine market.

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