IF you are among the public investors who bought shares in DMCI Holdings Inc. at P11 apiece in the last five trading days in August and the first five trading sessions in September, you are lucky because you are ahead by 1.818 percent. DMCI closed at P11.20 on Monday.
You must have done what DMCI insiders, who are members of the Consunji family, did during that two-week period by taking advantage of the stock’s fall. Among the Consunjis, Edwina C. Laperal, a member of the company’s nine-person board, made the best trades: she bought 50,000 DMCI shares at P10.544, putting her ahead by P0.656, or 6.221 percent. The computation is based on the stock’s close of P11.20 on Sept. 7.
Postings showed other insiders like Cristina Gotianun, DMCI assistant treasurer, and George A. Consunji, a director, also scored well by buying the stock at P11 per share.
Here is one consolation for the public who suffer losses because they have chosen the wrong stock. Being insiders does not always pay in terms of dividend. That is, given their big advantage of being privy to the goings-on in the boardrooms, insiders are expected to make a killing in trading their own company shares. But do they sometimes end up somewhere other than on the winning side?
Yes, the three Consunjis made good in their acquisitions of DMCI shares, but none of the family-owned corporate vehicles did as well.
DFC Holdings Inc. is one of two significant stockholders of DMCI Holdings. As of May 31, 2015, DFC Holdings owned 2.371 billion DMCI shares, or 17.4 percent, while Dacon Corp., the other significant stockholder, held 6.839 billion DMCI shares, or 51.51 percent.
As an insider, DFC Holdings has been buying DMCI shares. It bought 376,000 shares at P11.2881 each on Sept. 3; 589,300 at P11.7293; and 502,000 at P11.29942 on Sept. 7. It has to wait a little longer to recoup its losses in its investment. Anyway, its loss was only on paper because it has not unloaded its DMCI shares.
Lopez Inc. is the unlisted holding company of the Lopez family. On Sept. 1 and 3, it bought 200,000 shares in Lopez Holdings Inc. (LHI) in two trades—100,000 shares at P6.6789 and another 100,000 shares at P6.7142. The two acquisitions increased the number of LHI shares held by Lopez Inc. to nearly 2.427 billion shares, or 52.79 percent of almost 4.597 billion issued and outstanding shares.
(The words “issued and outstanding” as applied to LHI mean the company has not bought back any of its shares and thus, does not have treasury shares to report.)
The Lopezes, through Lopez Inc., have been buying LHI shares on the open market. From July 1 to its latest acquisition report, it acquired a total of about 19.541 million LHI shares. These acquisitions increased the number of LHI shares Lopez Inc. holds to 52.79 percent from about 2.407 billion shares, or 52.368 percent as of June 30, 2015.
At P6.50 per share, which is only an estimate, the Lopezes must have spent P127.015 million for their additional acquisitions of LHI shares without violating the required 10 percent minimum public ownership. LHI reported that as of July 10, 2015, a total of about 2.018 billion shares of its stock, or 43.91 percent, was publicly held.
Ironically, like other listed companies, the public is not represented on the board of Lopez Holdings. Instead, the Lopezes appointed three independent directors to its seven-man board.
Among the Lopez family, Oscar M. Lopez, Manuel Lopez and Eugenio Lopez 3rd are the biggest insider direct stockholders, with individual paper wealth of P74.243 million, P50.206 million, and P24.022 million, respectively. The computation is based on P6.45 per share of their direct holdings.
Of the three Lopezes, only Lopez 3rd, son of the late Eugenio Lopez Jr., does not have an indirect holding in Lopez Holdings. His uncles Oscar M. and Manuel M. had 7,457,025 LHI shares, or P48.098 million, and 17.505 million LHI shares, or P112.907 million, respectively.
While he is not a significant stockholder of Lopez Holdings, Lopez 3rd, nevertheless, as the only grandson of the late Eugenio Hofilena Lopez Sr., known as Don Ining, an LHI direct stockholder —is privileged to sit on the board of the family-controlled listed holding company.