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Writer's pictureDoc Mike

Why Eastwest drop more than 35%


What happened? If you are wondering why the sudden drop in the eastwest stock to almost half the reason simply lies on the fine details. The companies performance is not a factor since it has been out with stellar income growth. A sudden downward trend is an expected knee-jerk reaction from the approval of eastwest for increase capitalization from 1,500,000,000 to 4,500,000,000 by the BSP with a 50% stock dividend rate for present stockholders.

This created a sudden downward pull on the price due to market perception of dilution of the value of each stock. Always remember that stock market like any other market, the price is usually dictated by market perception before the fundamentals kick in. I believe that the fundamentals of this company are solid and prices will recover yet it may take a few months to a year

I would suggest you observe for the prices to floor before buying in. at the present the market is testing the support hence be patient before buying in.

Good luck and God bless


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