Stock in Focus: SOUTHEAST ASIA CEMENT HOLDINGS, INC. (June 29, 2009)

BUSINESS PROFILE

SOUTHEAST ASIA CEMENT HOLDINGS, INC.

Southeast Asia Cement Holdings, Inc. (CMT) was established on May 3, 1994 as a cement holding company, and listed at the Philippine Stock Exchange on December 14, 1994. In December 2003, CMT subscribed to 1,548,614,753 common shares of Republic Cement Corporation. As payment for the said subscription, CMT exchanged its 19,960,995 common shares in FR Cement Corporation (FRCC) and 10,000,000 common shares in Lloyds Richfield Industrial Corporation (LRIC). As a result, FRCC and LRIC ceased to be subsidiaries of CMT. Accordingly, Republic became an associate investee of CMT.

On October 9, 2007, the Securities and Exchange Commission approved the merger of CMT's subsidiaries, Seacem Silos, Inc. (SSI) and Seacem Trading Corporation (STC), SSI's subsidiary, Agrodynamics Philippines, Inc., and STC's subsidiary, Hopkins Holdings, Inc., where SSI is the surviving corporation. SSI remains a wholly-owned subsidiary of CMT. SSI has not started commercial operations.

Source: SEC Form 17-A (2007)

Reference: http://www.pse.com.ph/

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Analysis:

CMT is now -0.10 bearish. The drop of the DOW and PSE did not affected CMT from improving its status. It finally crosses above the 10 day moving average signifying that it is now starting to be bullish. A mini hammer formation is another proof of a more bullish trend expected to occur by tomorrow hoping DOW will end the day well. ADX reading is 35.74 and Williams %R reading is -59.09.

Bollinger Bands are 67.3% narrower than normal. The narrow width of the bands suggests low volatility as compared to CMT()'s normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for the past 7 days. The probability of a significant price move increases the longer the bands remain in this narrow range.

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Support/Resistance:

Despite the drop of the market today, CMT's major support line at 50% fibonacci fan still holds. It just pass by the 38.2% fibonacci time extension line. This together with the bullish hammer candlestick will indicate a possible increase in price the next coming days. Hopefully by tomorrow if not the next day. As long as this support line is not broken we will expect the price to continue trending upward along this support line.

Suggestion: BUY