Hindi na bumalik ang MER sa pinakamababang entry area natin na ₱454–₱462.50. Sa halip, nagpatuloy tayo sa pagbuo ng dividend position near the lower Bollinger Band at within the Core Margin-of-Safety Accumulation Zone.
Originally published: August 5, 2026 · Last updated: August 5, 2026
Links to related posts
- Bollinger Reversion Series: A Formal Setup-Based Series Within the MH Operator Journal
- MER Stock Study, Post 7: MER Updated Valuation as of August 3, 2026
- MH Operator Journal Entry 3: MER Lower-Band Accumulation at ₱496.20
- MH Operator Journal Entry 4: MER Deep Lower-Band Accumulation and Early Reversion Follow-Through
Ang Punto ng Usapan
On August 4, 2026, we completed another accumulation sequence in MER through three separate executions:
Purchase 1: 10 shares at ₱486.40
Purchase 2: 10 shares at ₱486.00
Purchase 3: 10 shares at ₱484.20
The combined transaction added:
30 shares at a gross weighted-average execution price of approximately ₱485.53
After the purchases, our official MER position became:
Number of Shares: 90
Average Price Net: ₱488.1283
Capital Deployed: approximately ₱43,931.55
MER Capital Allocation: ₱100,000
Deployment: approximately 43.93%
Remaining Allocation Capacity: approximately ₱56,068.45
The trade was not made because MER had returned to our deepest purchase prices.
It had not.
Instead, the price remained near the lower Bollinger Band and within the valuation range that we had already identified as the:
Core Margin-of-Safety Accumulation Zone
Ang Dating Paniniwala
After our August 3 purchases at ₱454 and ₱462.50, we initially considered the possibility that MER might revisit those deep-stress prices.
But the Bollinger Band structure had already begun adjusting.
The lower band moved toward the high-₱470s, while price began stabilizing above the extreme event low.
That changed the practical question.
Hindi na lamang:
Makakabalik pa kaya sa ₱454?
Mas naging relevant ang:
Should we continue building the position while MER remains near the lower band and inside the 15%–20% margin-of-safety zone?
Under the updated ₱595 fair value:
15% MOS: ₱505.75
20% MOS: ₱476.00
25% MOS: ₱446.25
Therefore, the broader exact 15%–20% MOS range is:
₱476.00–₱505.75
For practical portfolio use, we simplified its central portion to:
₱480–₱500: Core Margin-of-Safety Accumulation Zone
All three August 4 purchases were made inside that zone.
Ang Binagong Pananaw
The purchases have two valid classifications because we viewed them through two different lenses.
Technical Classification
Near-Lower-Band Dividend Accumulation
This describes where the executions occurred relative to the Bollinger Band.
Valuation Classification
Core Margin-of-Safety Accumulation
This describes where the executions occurred relative to the updated ₱595 fair value.
The technical label answers:
Where were we on the chart?
The valuation label answers:
Why was the price acceptable for ownership?
Together, the full classification becomes:
MER Near-Lower-Band Dividend Accumulation within the Core Margin-of-Safety Accumulation Zone
That is the proper characterization of Journal Entry 5.
Paano Ito Umaandar
The Three Executions
The purchases were completed as follows:
First Execution
10 shares at ₱486.40
Second Execution
10 shares at ₱486.00
These first two executions formed one complete 20-share capital block at a gross weighted-average price of:
₱486.20
Third Execution
10 shares at ₱484.20
The third purchase extended the completed block by another 10 shares as the price weakened further during the session.
Combined:
30 shares at approximately ₱485.53 gross weighted average
The gross capital used for the three purchases was:
₱14,566.00
The broker-adjusted position after fees is reflected in the official net average price of:
₱486.9657
The August 4 Closing Chart
At the close of August 4, 2026, MER recorded:
Open: ₱491.00
High: ₱502.00
Low: ₱482.00
Close: ₱485.00
Daily Change: -₱2.00 or -0.41%
The Bollinger Band readings shown on the daily chart were approximately:
Middle Band: ₱560.30
Upper Band: ₱641.80
Lower Band: ₱478.80
The closing price of ₱485 remained only:
₱6.20 above the lower Bollinger Band
That placed the stock close enough to the lower band to preserve the technical description of near-lower-band accumulation.
But the chart had not yet confirmed a trend reversal.
The MACD remained deeply negative:
MACD Line: approximately -22.5
Signal Line: approximately -11.8
Histogram: approximately -10.7
The RSI was:
24.25
This remained in deeply oversold territory.
The chart therefore showed two things at once:
- price was attempting to stabilize near the lower Bollinger Band;
- but bearish momentum remained strong.
This was not a confirmed recovery purchase.
It was still an accumulation during weakness.
The Valuation Reading
At the gross weighted-average execution price of approximately ₱485.53, the discount from the ₱595 updated fair value was approximately:
18.40%
That placed the combined purchase comfortably within the 15%–20% margin-of-safety range.
The individual executions also remained inside that valuation zone:
₱486.40: approximately 18.25% MOS
₱486.00: approximately 18.32% MOS
₱484.20: approximately 18.62% MOS
So even without the Bollinger Band signal, the purchases had a clear valuation basis.
The lower band improved execution.
The margin of safety justified ownership.
A Small Deviation From the Post 7 Deployment Plan
In MER Stock Study, Post 7, we proposed a staged deployment plan.
The main operating target was to build toward:
Approximately 60%–70% deployment before the dividend record date
We also preferred accumulation in complete 20-share capital blocks.
Journal Entry 5 involved a small deviation from that preferred execution structure.
The first two purchases formed one complete 20-share block.
The third 10-share purchase created an additional half-block.
So instead of stopping at 80 shares, we extended the position to:
90 shares
This was a minor operational deviation—not a breach of the capital-allocation rule.
The reason was that:
- price remained near the lower Bollinger Band;
- the third execution at ₱484.20 offered a slightly better price;
- all purchases remained inside the Core Margin-of-Safety Accumulation Zone;
- and total deployment remained below 50%.
The deviation did not exceed the approved ₱100,000 allocation.
It also did not move the position prematurely toward full deployment.
Still, it should be documented plainly:
We preferred complete 20-share blocks, but accepted an additional 10-share extension because the price remained technically and valuationally qualified.
That extension should not automatically redefine 10 shares as the new standard block.
For succeeding transactions, the preferred accumulation unit remains:
20 shares per capital block
Current Deployment Status
After Journal Entry 5:
Position: 90 shares
Average Price Net: ₱488.1282
Capital Deployed: ₱43,931.54
Deployment: 43.93%
Remaining Allocation: ₱56,068.46
This places MER near—but still below—the practical 50% deployment level that the 15%–20% MOS zone can support.
A further complete 20-share block within the same price zone would bring the position to:
110 shares
At a hypothetical price near ₱480–₱490, deployment would rise to approximately:
53%–54%
That would slightly exceed the rounded 50% intermediate target but would remain well below the full ₱100,000 ceiling.
For cleaner block discipline, we do not need to force deployment to land exactly at 50%.
The more useful principle is:
The Core Margin-of-Safety Zone can support approximately half deployment, while deeper discounts retain priority for the remaining capital.
Estimated Dividend Participation
MER’s latest declared interim cash dividend is:
₱11.758 per share
For the current 90-share position, the estimated gross dividend participation is:
₱1,058.22
This is before applicable withholding taxes and broker processing.
The dividend record date is August 28, 2026, with payment scheduled for September 23, 2026.
The position has therefore grown from a small visibility holding into a more meaningful dividend-participating position.
But the dividend was not the sole reason for buying.
The purchases were supported by:
- updated fair value;
- margin of safety;
- portfolio role;
- lower-band proximity;
- and available capital allocation.
Journal Classification
Portfolio Journal Number: MH Operator Journal Entry 5
Subsidiary Ledger: MER
Portfolio Role: Secondary Low Volatility Dividend Harvester with Regulatory Event-Risk Overlay
Technical Setup: Near-Lower-Band Dividend Accumulation
Valuation Setup: Core Margin-of-Safety Accumulation
Execution: Three purchases totaling 30 shares
Gross Weighted-Average Price: approximately ₱485.53
Resulting Position: 90 shares
Resulting Average Price Net: ₱488.1282
Resulting Deployment: approximately 43.93%
Formal transaction description:
MER Near-Lower-Band Dividend Accumulation within the Core Margin-of-Safety Accumulation Zone
Pangwakas na Kaisipan
The lowest MER entries at ₱454 and ₱462.50 came during an exceptional price overshoot.
We could have continued waiting for those prices to return.
But the lower Bollinger Band had already adjusted toward ₱479, while MER remained inside the 15%–20% margin-of-safety range.
So we did not require the market to repeat the exact event low.
Instead, we used the price zone that the updated valuation had already established as appropriate for accumulation.
The first 20 shares at a ₱486.20 average formed a complete capital block.
The additional 10 shares at ₱484.20 were a small extension—slightly outside our preferred whole-block structure, but still within the same technical and valuation setup.
We record that deviation because MH values governance.
Hindi naman kailangang gawing malaking kasalanan ang bawat maliit na adjustment. Pero kailangang malinaw kung saan tayo lumihis at bakit natin ginawa.
After the transaction, MER reached 90 shares and approximately 43.93% deployment.
That leaves more than half of the ₱100,000 allocation available.
We have participated.
But we have not exhausted our optionality.
Journal Entry 5 did not attempt to catch the bottom. It continued building ownership where the lower Bollinger Band and the Core Margin-of-Safety Zone met.
The PSE has confirmed that its Shariah screening program is currently paused, with no new lists to be released until their internal review is completed. Although news outlets reported quarterly updates up to mid-2025, these later lists are no longer accessible on the PSE website.
For now, the PSE’s Shariah-Compliant Securities page and all past lists have been removed from the public website. The December 24, 2024 list is the last official version in Micro Stock Trader’s possession, downloaded before the page was taken down, although other investors may still hold later copies such as the reported July 4, 2025 release.
All halal-focused strategies under Micro Stock Trader will use a conservative, self-screened approach until official guidance resumes, in shā’ Allāh.
This post is for educational and documentation purposes only. It is not investment advice. Perform your own due diligence and consult qualified financial professionals before making investment decisions. All strategies, frameworks, and examples described here reflect the personal methodologies of Micro Stock Trader and are not guarantees of future performance.
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