There was also a news that the Department of Energy (DOE) gave an order to cease and desist SCC’s coal trading activities due to alleged illegal coal trading activities in Negros Occidental.
Should the cease and desist order (CDO) be lifted, we think SCC’s share price will not rally as much as earnings are still expected to be lower this year given lower average selling price and high operating costs for its coal business. Also, significant earnings recovery is not expected this year as its power plant in Calaca will still be fully operational by 2020.
- We are convinced that the technical patterns are becoming more bullish then bearish
- MA200; also showing signs of recovery
- We see the Technical indicators showing positive signs of a rally soon
- Good to use peso averaging and take on this stocks
- We will approach “VALUE INVESTING”
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Article by: Ashok – Strategic Coach & Mentor – MDRT/COT/TOT