Time To Acquire More Of JGS Stocks

JG Summit Holdings Inc. operates in the consumer foods, agro-industrial and commodity food products, and textiles industries. The Company also invests in real estate, manages hotel, and provides apartment management services. In addition, JG also provides banking and financial services, and invests in telecommunications, petrochemicals, and air transportation businesses. (source: Bloomberg)

Maybe some investors were surprised on the steep fall of the JG Summit stock price from 28.5php down to 25php. This is after a news that an affiliates of JG Summit Holdings (Ticker : JGS) sold 215 million common shares at 25php a piece.

Actually, the JGS affiliates who sells the stocks were not named.

Is it good or bad for this stock?

For me, I think this is good because it would increase the liquidity of this stock because of its higher public float. And with higher float, it only makes sense that this stock will be on the list of more traders.

Is it time to acquire more of this stock?

Of course, at the current price of 25php I found it attractive to add more position on this fundamentally sound stock. Just like the famous Warren Buffett said ” Be greedy when others are fearful, be fearful when others are greedy.”

With RLC (Robinsons Land Corp.), URC (Universal Robina Corp.), CEB (Cebu Air), Robinson Bank, and OPM on it’s portfolio, I think it was the most diversified conglomerates in the Philippines.

Also, we should keep in mind that this company is awash with cash after the sell of its telecommunication unit (Digitel Telecom) to the PLDT.  Sitting in cash, and with its sight now focus on venturing into infrastructure, the story of growth for JGS is not only promising but somehow compelling.

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