Acquisition of listed stocks by insiders
Credit to Author: EMETERIO SD. PEREZ| Date: Tue, 15 Jan 2019 16:20:13 +0000
Roberto N. Huang, chief operating officer (COO) of the beer division of San Miguel Food and Beverage Inc. (SMFBI), reported his direct ownership of 10 SMFBI common shares which he said he owned as of Aug. 20, 2018. He also indirectly held as of the same date 3,500 SMFBI preferred S2 shares. In the same filing, Ferdinand K. Constantino, SMFBI treasurer, also directly owned 10 SMFBI common shares and 8,100 preferred S2 shares.
Both Huang and Constantino are also members of the nine-person board of the food and beverage company, which is a subsidiary of San Miguel Corp. (SMC).
According to a posting on the website of the Philippine Stock Exchange (PSE), San Miguel Food has three COOs. Aside from Huang, Francisco S. Alejo 3rd holds the same post for food division while Emmanuel B. Macalalag is COO for liquor division.
At SMFBI’s closing price of P84,00 on Jan. 14, 2019, Huang’s and Constantino’s 10 directly owned common shares had paper value of P8,400. As of Jan. 10, 2019, Huang’s 3,500 SMFBI preferred shares had market value of P3.395 million while the 8,100 SMFBI preferred shares of Constantino were worth P7.857 million.
San Miguel Food preferred shares hit a high of P1,000 and a low of P968.50 in 30 days.
Additional acquisitions
Eight vice presidents of the Bank of Philippine Islands (BPI) bought additional BPI common shares at P79.22 each while two senior vice presidents (SVPs) paid P93.20 per BPI common share. The acquisitions effectively increased the number of BPI common shares they own.
The eight BPI vice presidents and their acquisitions are as follows: Ivy Maria Ejercito, 3,000 BPI common shares, increased holdings to 8,879 common shares; Florisa Flores Dionisio, 7,000 BPI common shares, increased holdings to 25,772 BPI common shares; Maria Angelica Florentino, 5,000 BPI common shares, increased holdings to 38,705 BPI common shares; Glenda Manzo Gonzales, 4,000 BPI common shares, increased holdings to 18,756 BPI common shares; Mary Jane Young Laquindanum, 7,000 BPI common shares, increased holdings to 35,140 BPI common shares; Noel Arguelles Santiago, 5,000 BPI common shares, increased holdings to 30,160 BPI common shares; Janet Bagasao Taguba, 5,000 BPI common shares, increased holdings to 15,006 BPI common shares; and Edelinda Roguel Tined, 5,000 BPI common shares, increased holdings to 20,290 BPI common shares. The two SVPs who bought their additional BPI common shares are Eric Roberto Mirasol Luchangco, 8,000 BPI common shares at P93.20 each, increased holdings to 181,277 BPI common shares, and Manuel Castro Tagaza, 5,000 BPI common shares, increased holdings to 76,685 BPI common shares.
On Jan. 7, 2019, the day eight VPs and two SVPs bought additional BPI common shares, BPI common shares opened trading at P94.00, hit a session high of P95.70; fell to a low of P93.00 and closed at P93.00. On Jan. 14, 2019, BPI common shares opened trading at P89.95, peaked at P92.30, dropped to P89.30 and closed the session at P91.90.
Due Diligencer’s take
Let the public judge BPI insiders if it pays to be either VP or SVP. Their additional acquisitions of BPI common shares maybe under the bank’s executive stock option plan (ESOP).
Under said ESPP, these VPs and SVPs may have acquired additional BPI common shares. However, does being an insider give each of them a big advantage over one of the public investors?
Of course, the eight BPI vice presidents may have enjoyed a huge advantage over the public. Their acquisition price of P79.22 translates to 17.395 percent of their ESOP privilege and a discount of 14.817 percent to the closing market price of P93 per BPI common share on Jan. 7, 2019.
Sometimes, it pays to be an insider, who knows the direction a listed stock would take. However, this is not always the case. Not a few directors of listed companies found themselves the big losers whenever they either bought or disposed of their holdings. Imagine their regrets whenever they sold at prices they thought were high and which even went higher.
Does anyone care if insiders either lost or gain in their trades? Just asking.
esdperez@gmail.com
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