With the rather high volatility being exhibited by MARC today, I’ve received a number of inquiries as to what people should do. Sell? Buy? Hold?
As is almost always the case, there is no one answer for everyone. Ultimately, your actions should be decided by your TRADING / INVESTING PLAN. (You DO have one don’t you?)
Kung Fundamentals gamit mo. Review the numbers. What will a one-month suspension do to MARC’s bottom line? What about 3 months? Using the PX case as a precedent, you can begin to estimate the size of the fine that they will be charged with for allegedly causing siltation in the nearby river. The numbers you come up with should be your basis as to what to do.
Kung Technicals ka naman. What are your indicators telling you? Pag tinamaan na cut loss level mo, SELL. Otherwise, whats the point of having a cut-loss point if you second-guess it. EVERYONE loses at some point and part of maturing in the market is learning to take losses. Lastly, please do NOT suddenly say “Ok lang, long-term naman ako.”
Disclosure: I currently hold NO mining or oil stocks at this point.
* Marcventures Holdings Inc. (MARC) is a holding company listed on the Philippine Stock Exchange. It is involved in nickel mining operations in Surigao del Sur, Philippines, through its subsidiary – Marcventures Mining & Development Corporation (MMDC). Source: http://www.marcventuresholdings.com/
*PX – Philex Mining Corp