In our Equity Advisor issue last July 29, we noted that Philweb Corporation (WEB) would likely rebound following the Php27 million purchase that UBS made at an average price of Php4.4955. The rationale for its likely rally was that such purchase would lessen the overhang on the stock that would otherwise be sold at the open market. Indeed, the stock rose and advanced towards our mentioned objective and more, giving it a gain of 15.33% in just 5 trading days. Moreover, the stock has also breached its supposed resistance at Php5.00. Moving forward, WEB may aim for its next resistance at Php5.80 if it can stay above Php5.00. On the downside, a fall below Php5.00 may send it down to Php4.50 again.
WEB write-up from the Trading Edge Equity Advisor:
July 29, 2014
Philweb Corporation (WEB) slid to a low of Php4.39 following its fall below its support at Php5.00. The stock, however, may be due for a temporary rally back to its former support at Php5.00 if it can stay above Php4.39. What makes this a possibility is the purchase amounting to a little less than Php27 million worth that UBS made at an average price of 4.4955 last July 25. This transaction may relieve some selling pressure from the stock. Still, a slip below Php4.39 may send it down to Php4.00.
*Consensus target price or average target price given by the major foreign and local brokers of various stocks are available in our Equity Advisor!
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