Newton’s Law Lives! TEL Surrenders 100% of May-July Run

Last June, when TEL had furiously been pushed higher, and where the push had been popularly anchored on the supposed success of the 4G deal, I wrote:

TEL was, in part, responsible for the shoring up of the index. That’s because another hysteric bidding episode sent TEL prices to the sky! The firm’s share price closed up by an astounding 4.9%! Since its milestone low at 1,624 in May 24, 2016, the largest Philippine Telco company have accrued a mindblowing 29.55% in just 11 trading days! 

TEL has been no stranger to major and minor boom-bust cycles, though.

So far, the magnified intensity and fantastic speed of TEL’s parabolic moves seems to parallel the firm’s share price activities during the 1998-1999 saga.

Yet the justification for these wild bidding sessions has been the joint acquisition by the duopoly, TELand GLO of SMC’s “4G”. Albeit such deal officially transformed the duopoly into a monopoly. As explained before, technology and growth are not written on the stone. Many other factors as prices, income, monopoly and politics will play a big role in determining the success of the rollout.

Finally…

Also note that there was a short parabolic bout when TEL set a new record in September 2014. Unfortunately Newton’s Third Law of motion—For every action, there is an equal and opposite reaction—became reality. So the mini boom eventually ended with essentially all the gains returned!

Yet this will serve as template to most of TEL’s historical performance

Apparently, history has repeated again!

 

As of today's close, PLDT has surrendered 100% of its 33% May to July meltup!

Newton’s Law Lives!