DITO has already been down by 39.0 percent since March when DITO Telecommunity started to provide its services as soon as the firm was “second-tier subsidiary.”

DITO Telecommunauton has chosen Nokia for its planned 5G services in Mindanao to supply and deploy equipment.

President Duterte has recently signed a bill on RA No.11537, which extends the license of DITO Telecommunities for a further 25 years or by 2046, strengthening its position as the third biggest telco in the state.

DITO CME Holdings Corp. is a holding company of Davao-based businessman Dennis A. Uy, which has interests in multimedia, I.T. and telecommunications. Once the proposed restructuring proceeds the company will own 100% of Udenna CME which owns 89% of DITO Holdings Corp. which then owns 60% of DITO Telecommunity Corp.

Technical Analysis

  • The stock has been in a short to medium term DOWNTREND after it hit a high of P19.00 back in February.
  • It may have found a bottom at P7.20 and may start moving higher from this support level
  • The long-term uptrend remains intact.
  • It is heading towards resistance at P10.35. Breaking above this level will signal more upside.

Bottom Line: Brace Yourself for Massive Dilution and Lower Prices

Philippine Law requires all telecommunications entities with regulated types of services to make a public offering through the stock exchange, either directly or indirectly. To avoid scrutiny and skip the long process of doing an IPO, the group did a backdoor through already listed ISM, which has since changed to DITO. To inject the third-telco company, DITO will be issuing 4x the number of its total outstanding shares of 2.8 billion to Udenna Corp., in exchange of 100% of the shares of Udenna CME, which will bring the total to 14.0 billion shares. The massive dilution is guaranteed to result in a collapse of the stock price (See DAVIN after Liquor Business Backdoor), how low it can go will depend on where the price is before the transaction takes place and how low the price goes before investors start coming in.

Despite this, the stock may continue to be a favorite among traders and investors as the company makes progress on the rollout. The company will be up for its second technical audit in July, and it looks like they are on track to meet the requirement of reaching 51% of the country’s population while offering a minimum average internet speed of 55 Mbps.

Material in this article is obtained from sources we believe to be reliable, but its reliability or precision cannot be guaranteed. This is for the sole purpose of providing details and does not provide an offer from us to buy or sell securities mentioned in this document.


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