Playing with VITA’s Par

Par value is the stated amount per share in the articles of incorporation. It is a promise that no shares shall be issued below the indicated amount.

Vitarich Corporation (VITA, the Company) has been vocal in their intention to sell whole or part of the Company. [1] This statement may provide an investment opportunity for an individual investor since VITA is occasionally trading at below its par value of P1.VITA1

A patient investor can allocate below .95 and may reap a decent return should VITA be taken over or a strategic investor may infuse more cash to the Company.

RISK:

Non-occurrence if the buy-in will render the investment thesis invalid.

Sources:

  1. Clarification of news article: “Cebu firm may get Vitarich; Paje’s special mining permit”, http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-9089_VITA.pdf

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.

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2 thoughts on “Playing with VITA’s Par

  1. Pingback: Learning from Tycoons, Mike Ferrer, Stock thoughts: EDC, AT, MER, VITA | Fundamental Enthusiast

  2. Pingback: Aboitiz Group and VITA, Stock Thoughts: MED | Fundamental Enthusiast

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