I was reading some FB comments and some people were wondering what happen to COSCO’s stock price?
Let me give you a little background about COSCO.
Cosco which was formerly Alcorn Gold Resources Corporation was engaged in oil exploration. It was incorporated on January 1988 and on January 2000 the SEC approved its change of primary purpose to a holding company.Finally on April this year the change in name to Cosco Capital Inc. was made to make clear what this Lucio Co led company is all about. They are currently diversifying their businesses to include retail, real-estate, pharmacy, and other business.
Now with all the fuzz some people were wondering or even worse thought they were short change when the stock price slump from 15/share to 10/share. Most didn’t know that the main holder of Cosco, Lucio Co Group, listed the shares they have and made asset swap with other existing companies under the Lucio Co Group like PureGold in order to put all their businesses under the new holding company just like what Lucio Tan did by making LTG(LT Group formerly Tanduay Holdings Inc.) its holding company. Aside from the shares they already held additional shares were also listed to get funds for their expansion plans.
Philippines’ Cosco Capital Shares Slump After $400 Million Offer
With all those planned acquisitions and expansion I bet having COSCO at 10/share is not that really bad. For those who just got it at the 15/share just wait for a while and surely you will get back your investment but us who have not gotten hold of it is the best time to catch it when it goes lower this coming days. If COSCO’s original businesses, that is oil exploration, will be revived and the planned entry to the energy sector of the Lucio Co group continues COSCO might be in the league of the big companies like SM, AC, TEL, JGS and others and it would be a good time to get a hold of it while it is at 10/share level.
Going back again to the issue I guess what most investors are arguing is that why was the price change to 10/share when it was originally at 15/share? I am not sure if it is due to the exemption rule under SRC(Securities Regulation Code) 10.1 but let see what will be the development of this issue this coming Monday.
Also for more learning on COSCO you can check out this link (click the image below)about their business and plans for the next coming months.