Depends on the Stock, but generally buy for me stay away from mining tho too many uncertainties right now. btw there's a new ipo round the corner CAL. anyway reposting from what i wrote in Philippine Investors Group, join our FB groups if you wanna learn more bout stocks, investments etc. share tsismis etc na ren.
Hi guys just a reminder: the offer period for Calata Corp (CAL) is from May 10 to 16, if you want to subscribe better call your brokers ASAP, if im not mistaken each brokerage is only given 54,000 shares so better reserve while still early. Offer price is only at 7.5 per share
Now for everyone who is not familiar with the company, CAL is the largest combined distributor of agro-chemicals, fertilizers, seeds, feeds and veterinary medicines in the country. It has partnerships with brands including B-Meg, Jardine, Bayer etc.
A lot of people are comparing this stock to AgriNurture Inc. (ANI) but they do not have the exact same business model. Whereas ANI is more into the finished process farm goods, CAL is into how the finished farm good is made. For example, ANI is into the sale of Pechay (processed already) while CAL is into how the pechay was made, from the sale of seeds to fertilizers, to insecticides etc.
Now if you think about it, the business of ANI and CAL goes hand in hand so i do not see any reason why CAL would not be able to mirror the movement of ANI's share price. Also note that CAL offer price is only 7.5 while ANI is at around 12. Additionally, ANI is about to breakout any time soon if you would study its price movement. both have more or less the same capitalization with ANI at more than 3B while CAL is at 2.7B after IPO. Revenues of CAL in 2011 reached P2B which is at par with the P2.25B total consolidated revenues of ANI
CAL is also into the sale of hog and chicken feeds as well as farming and if im not mistaken supplies chicken to Monterey and Magnolia. ANI does not have this. they also plan to expand its retail stores which will surely continue to improve the company's sales.
I am really bullish on this stock, just imagine all the jollibee, mang inasal, pizza hut etc. we eat is connected one way or another to CAL.