Two stocks that has been on the limelight lately for some not so right reasons are SCC and URC. The stock price of both stocks plummeted lately for different reasons.
Are these two worth buying or should be avoided?
SCC fell from the P130 level all the way down to the P100 level when it ran into the risk of having its ECC license cancelled.
It was given seven days to explain its violations of its Molave coal mine or face suspension of its ECC.
SCC owns the largest coal mine in the Philippines. It produces 90% of the country’s coal production and accounts for 30% of the country’s power requirement.
A company as big as SCC will definitely comply with what the government is requiring from them. SCC has too much to lose if their ECC gets cancelled.
Ideal buy for SCC is at P100. If price drops below P100, better.
URC’s stock price on the other hand dropped mainly because of the flat earnings of BCFD International dragged by the challenges that the company is facing in Vietnam.
URC recalled its products in Vietnam and recalibrated its warehouse facilities after lead content in its drinks went more than what was prescribed by the government.
Just like the “chicken sad” story of JFC months back, this is just a temporary set back for URC and its stock price is seen to bounce back up after a few weeks (even just days).
Things are even starting to get rosy for URC after it acquired CSBL which owns Snack Brands Australia.
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Article by Makoy Velasco, Certified Securities Representative
Any views or opinions represented in this blog are personal and belong solely to the columnist and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.