Chemrez Philippines, the first publicly listed biodiesel processor in the Philippines, declared a stock dividend and stock buy back plan yesterday. This resulted in a P0.25 increase from its previous day closing price of P4.00/share.
The stock dividend issued to stock holders will be a regular cash dividend of P0.02 per share and a special cash dividend of P0.04 per share (par value = P1.00/share). Dividends will be released this October. Funds for the stock dividend will be taken from the companies 2006 Net income which amounted to P94.36 million. Of course the other good news was the buy back which will be funded by a P500 Million war chest.
All these are great news for a company suffering from a slip in stock price. It experienced a year high P6.30/share stock price in May then started to slip drastically going below P4.00 in August. Quite shocking actually considering that with the passage of the Philippine Biofuel Bill earlier this year it guarantees a sure market for the Biodiesel that Chemrez produces. If I had some loose cash at hand I would surely buy stocks of this company.
UPDATE: I’m getting that “Globe” feeling right now. Back in 1994 when there was that Philippine stock market craze, a couple of my friends bought stocks of Globe which was at P20/share. As a lowly student I didn’t have access to that kind of funds hence I missed out on that boat. When I last looked at the price of Globe Telecoms it was hovering at P1,305/share. The reason I was sold on Globe being a good buy was because of the handy phone features they were offering at that time. Chiefly because it was unlimited texting and promise of a digital secure network immune to cellular phone cloning. Texting was the thing that I thought would make it big because at that time you could send unlimited text messages. If you could get by on text messaging alone without using voice, in a way were one-upping Globe by only having to pay the monthly bill. Of course now times have changed since there is already a per text charge plus Globe’s stock price has more than doubled.
Article here
Category: Biodiesel, Asia
September 10th, 2007 at 6:25 pm
Hi there! I have shares of this stock and unfortunately, i bought them hovering about 5+. Now, it’s trying to keep above 4+. Hence, I’m gutted. But nevertheless, I’m keeping the faith. Actually, I’m just as surprised as you are about how Chemrez is seemingly overlooked the by the market. On days this like, it’s nice to know there is someone who shares my enthusiasm for this company.
September 11th, 2007 at 1:36 am
Yeah, I think that the company is dastardly under priced since people have yet to really understand the implication of the biofuels bill to this company’s bottomline… which I feel makes its stock a steal at the PSE…
Thanks for dropping by Bobbie
October 11th, 2007 at 8:30 pm
Read your article today . I got some shares too ,
did you see the volume of shares being bought ? I
think people are starting to notice this company
October 11th, 2007 at 9:14 pm
Thats great news Micky! Hope people have really caught wind of the biofuel potential and its not just a temporary blip in the stock market.
Hope they same fortune follows Zambo Energy whenever they go public. They produce ethanol and the demand is greater than diesel. Add to that the fact that you probably won’t see Oil going down $70/barrel because all the cheap sources are near emtpy and new wells are expensive to extract from because of the complexity and distance.
Thanks also for dropping by