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| source: http://www.renewbl.com |
EDC (Energy Development Corporation) had been one of the heavyweights last year due to the various expansion projects within and outside of the Philippines.
Recently its price drop again to the 5.50 level brought about by the news from Bacman's non-operation. A report from bworldonline.com says that Bacman is expected to operate this year.
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| source: http://www.energy.com.ph |
With the sudden drop in price, in my personal opinion, it is a good time to enter again EDC. Looking at the price chart the stock is now oversold and on its bounce back to the 6.00 level.
Looking at EDC's latest data from reuters.com, the company is in good shape as far as fundamental are concerned. Its Current ratio still stands at 2.63 while Debt to Equity is at 194 which is still within the industry levels.
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| source: www.reuters.com |
I don't know though until where the price will go down further so the best action to take is to buy small chunks of shares at a price lower than its previous closing price.
How about you what is your take on EDC's latest price drop? Please share your thoughts in the comment box below.
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