Spotlight: Aboitiz Power (AP)

Aboitiz Power on Spotlight: Consolidating and Dropping.

Aboitiz Power (AP) on Spotlight: If you are holding this stock or “stuck”, as some would call it, you would notice that its price hasn’t changed much since April 2020. This may not be a surprise because one big broker gives it a HOLD rating with a target price of P29.00; however, another similarly big broker gives it a BUY rating with an old target price of P33.50 and a recently revised target of P40.40. As of January 15, 2021, it hasn’t left its consolidation range of about P24.50 to P30.00. In fact, in the last 3 months, it has been ranging from P25.75 to P28.60.

Well, you’d probably not care if you are carrying this name for the purpose of dividends but all high-dividend yielding stocks in our list (see Best Dividend Stocks) have gone up so far except AP and GLO. And GLO has broken out of its 50-day moving average (50-d MA) price just two trading days ago. As if AP is not in a real hurry to join its colleagues, it even sunk below its 50-d MA price of P27.04 — it’s last price being P26.05 on January 15, 2021.

Like the half-full-or-half-empty-glass dilemma though, we could take the opportunity to add some AP shares in our dividend-yielding portfolio while the price is still depressed. We expect the price to eventually catch up with fundamentals anyway.