Cemex (CHP) discloses to PSE, APO Cement resumes operations

It is a very much welcome development for Cemex (CHP) shareholders that APO Cement's two kilns at their plant resumed its operations.

In a disclosure to the PSE, CHP announced that it has resumed the operations of its two kilns in Apo plant.

CHP indefinitely suspended the operations of one of its two kilns in Apo plant last November 21 to manage rising costs brought about by the suspension of its supplier, Apo Land & Quarry Corporation (ALQC). 

CHP also said that it would be canceling the implementation of the temporary layoff of regular employees and contractual workers and the closure of its terminal in Davao City.

As a stock investor of CHP, I was one of those in "ipit" situations. The average cost of my CHP stock position was at PHP 4.40. I invested during the time when the Duterte Administration revealed the Build, Build, Build program. I was anticipating the demand for construction materials hence, considering including CHP to my portfolio. The government's infrastructure program boosted CHPs stock price at PHP 12.50 per share in the 4th quarter of 2017.

The price trend of CHP was in the decline entering 2018 because of imported cement. But I held on to my position because of 1. a good outlook report from COL and 2. my optimism of the government's infrastructure program. 

If you look at the above screenshot, I lost almost 60% of my CHP position. What made the situation worse was the unfortunate landslide in Brgy. Tinaan, Naga City in Cebu left at least 78 people dead. This opted the government to order the ALQC’s suspension.

With the above development, I'm hopefull that CHPs price will start to at least move upward.

Share your "ipit" story in the comment section below.