The other day, the deal between Alliance Global, Inc. (AGI) and Fil-Estate Land (GERI) regarding the latter’s sale of 5 billion common shares for PHP 5 billion was pushed back to January 11 unless “the two parties agree to further postpone it.” Earlier today, however, no disclosure about any further delay was made, leading us to assume that the transaction was finally completed or at least was going to be closed by the end of the day. The proceeds of the sale will allow Fil-Estate Land to “afford the liquidity it needs to develop and complete its existing projects, create new projects, redeem certain convertible bonds and prepay some loans.”
On the technical side, it was just a couple of weeks ago when LND broke out from a cup and handle formation. After the said breakout, it then leaped from a low of PHP 0.80 to top at PHP 1.51 in just a short span of time. It cooled off a bit and consolidated for a while into a pennant pattern before finally breaking out again this morning. In less than a month, the price of LND doubled. Cool. Anyway, based on the height of the pennant’s pole, I think that there is still a lot of room for LND to move higher. If we project the pole from the point of breakout, which is at PHP 1.51, it would give us an upside target of PHP 2.19.