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In a disclosure to the Philippine Stock Exchange, the following news from was confirmed.

Chelsea Logistics Holdings Corp. (CLC) is going to increase its ownership in 2GO Group Inc. to 40%. Chryss Damuy, President and Chief Executive officer of CLC,  stated that the firm is currently working on a tender offer to increase its stake.

“Increasing CLC’s ownership to 40% would make it the biggest shareholder in 2GO,” he said. IBut they’re still waiting for the Philippine Competition Commission’s approval for the offer.

“Once we get their (PCC) nod, we will proceed with the tender offer,” he said.

In its prospectus dated July 1, 2017 at the initial public offering of  CLC, the company already stated that it had allocated P2.2 billion to finance the acquisition of the 20% remaining stake of NHC in KGLI-NM and for the tender offer of Negros Navigation and 2GO shareholders. If the acquisition does not push through, CLC is looking at other companies for potential acquisition of vessels as part of its re-fleeting program.

Chelsea Logistics Holdings Corp (CLC) booked a net income of P399.78 million in the first half of 2017. This translates to a net profit margin of 26.014% and an EPS of 0.45. This will lead to a projected full-year EPS of 0..90 and a forward P/E ratio of 10.66x, undervalued versus the index. The stock is also trading at 1.52x, overvalued versus the normal value of 1.00.

CLC remains bearish as the stock is still making lower highs. However, a possible higher high is in place if stock does not move lower. The moving averages are bearishly aligned with the 15 EMA and 20 SMA acting as resistance. Volume isn’t getting bigger as well on the red candles. MACD is poised for a bearish crossover. RSi is also bearish but is not yet at oversold levels. Support is estimated at 8.55 while resistance is expected at 9.02.

CLC - Daily Chart - January 4, 2018

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