It was disclosed last Thursday that GMA Network, Inc. (PSE:GMA7) and the PLDT Group (PSE:TEL) have terminated talks of possible acquisition as both parties could not reach for mutually acceptable terms. GMA7 stocks fell from P 9.03 on October 2 to P 8.20 or 11.8% on October 5 to close the week. In contrast, PLDT shares went from P 2,760 to P 2,752 of the same period, a mere .29% decline. Media company rival ABS-CBN (PSE:ABS) gained .77%.
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| 1 year stocks comparison GMA7 TEL ABS |
GMA7 stocks traded at 6.67 on January 18, 2012 prior to news of a potential takeover broke out. There have been back and forth communication ever since then and rumors continued to spread that progress were being made. The stock had performed well throughout this year, gaining 50% from 6.6 to 9.9 by the end of September. Obviously the investing public viewed the potential buyout positively for GMA7, giving them an opportunity to earn high returns. But any high return investments also involve high risk. Nobody but the executives of both parties can decide if the plan was going to push through and GMA7 stocks were driven mostly by speculation. Most of the investors who took the risk paid the price of being wrong, although some also made significant profits if they pulled their investments on time. The key is getting updated on stocks market news and making the right decisions. Although it will never totally remove the risk, being informed is a big help in avoiding huge losses and making significant profits in the future.
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Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.