Insiders may not always be right



ICTSI. Jose C. Ibazeta, a member of the board of International Container Terminal Services Inc., grossed P5,939,539 from his sale of 58,250 shares in eight trades on June 6 as follows: 2,300 shares at P101.20 each for a total of P232,760; 1,970 shares at P101.70 each for P200,349; 14,730 shares at P102 each for P1,502,460; 3,700 shares at P101.90 each for P377,030; 32,750 shares at P102 each for P3,340,500; and 2,800 shares at P102.30 each for P286,440. The sales reduced his holdings in ICTSI to 2,950,310 shares, or 0.11 percent. On Friday, ICTSI closed trading at P105.80.

FGEN. Richard B. Tantoco, a member of the board and, according to a filing with the Philippine Stock Exchange, one of two executive vice presidents of First Gen Corp., grossed P2,508,600 from the sale of 130,000 FGen shares in three transactions as follows: 80,000 shares at P19.04 each, for a total of P1,523,200 on June 7; 20,000 shares at P19.72 each, or P394,400, and 30,000 shares at P19.70 each, or P591,000 on June 8. The sale reduced his holdings to 3,759,820 shares from 3,889,820 shares. FGen ended trading at P19.80 on Friday.

IRC. Alexander G. Asuncion, president and one of 11 directors of IRC Properties Inc., sold 3,855,000 IRC shares in six trades on June 6 at various prices – 2,513,000 at P0.95 each; 528,000 shares at P0.96 each; 535,000 shares at PP0.97 each; 109,000 shares at P0.98 each; 120,000 shares at P0.99 each; and 50,000 shares at P1 each. From the sale of a total of 3.885 million IRC shares, he grossed P3,688,800. On Friday, IRC closed trading at P1.01.

On June 5, Asuncion also unloaded 2.098 million IRC shares for P2,020,420 in four trades – 609,000 shares at P0.95 each; 800,000 shares at P0.96 each; 135,000 shares at P0.97 each; and 554,000 shares at P0.98 each.

Asuncion reported his sale on June 2 of 1.2 million IRC shares for P1,184,020 in three trades – 200,000 at P0.97 each; 998,0000 shares at P0.99 each; and 2,000 shares at P1 each.

A public ownership report as of March 31 listed Asuncion as a direct stockholder with 90.014 million IRC shares and an indirect owner of 26.692 million shares, for total holdings of 116.706 million shares, or 8.79 percent.

VITARICH. Ricardo Manuel M. Sarmiento, director, president and chief executive officer of Vitarich Corp., held a total of 55,484,990 shares in the company, of which he directly owned 55,400,500 shares or 1.9882 percent. On June 6, he sold 1 million shares at different prices in six trades – 122,000 shares at P2.03 each; 250,000 shares at P2.05 each; 316,000 shares at P2.06 each; 100,000 shares at P2.10 each; 200,000 shares at P2.12 each; and 12,000 shares at P2.14 each.

From the sale of Vitarich shares, Sarmiento grossed P2,070,800 but reduced his direct holdings to 54.4 million shares. The total number of shares he owned stood at exactly 54,484,990 shares. Vitrarich closed trading at P2.16 on Friday.

Due Diligencer’s take. Of the four company insiders, only Ibazeta is a non-executive director. Of the three executive directors, only Tantoco is an executive vice president as shown in the filing with the PSE, while Asuncion and Sarmiento are either significant or principal stockholders of their respective companies.

The trades by Ibazeta, Tantoco, Asuncion and Sarmiento are retold here for the information of the public investors. Rest assured, however, that the sales of their holdings are fully disclosed in compliance with the policy of full transparency that governs trading on the Philippine Stock Exchange.

Due Diligencer reports the sale of certain insiders for the information of the public who are never privy to anything going on inside the boardroom. It is up to outsiders to chart their investment decisions on their reading of postings on the website of the Philippine Stock Exchange.

There is no substitute to one’s own interpretation of the contents of disclosures, particularly the quarterly financial reports. Even if these financial filings are not audited, they still provide the public the information they need in judging a particular stock.

Just don’t forget the entries under equity in a financial posting, especially a listed company’s retained earnings, which banks report as a “surplus.”



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