Viewpoint
The Return of Liberalism
By Dr. Victor S. Limlingan
Chairman
November 10, 2008
The presidential inauguration of Barack Obama as the 44th President of the United States of America on January 20, 2009 will mark the formal return of Liberalism as the dominant political and economic philosophy of our times. Thus sayeth, Paul Krugman in his November 7th, 2008 column of the New York Times.... [Read Full Story]
Floor Tales
By Gomer F. Tan
VP Marketing
December 8, 2008
Alaska has postponed the payment date of the cash dividend of P0.075 per share to all stockholders to January 5, 2009 due to the declaration of December 26 and December 29, 2008 as special non-working holidays.
Atlas Consolidated Mining and Development Corpontion (AT) is pleased to announce the production results as at the end of November 2008 in relation to the Carmen Copper Mine, located in the central Philippine island of Cebu. A total of 745,359 dry metric tons of ore with an average grade of 0.29% copper have been processed at the company's Carmen concentrator which produced 4,744.31 DMT of copper concentfates. The concentrate grade averaged 28.137% copper, with gold and silver assays averaged 2.56 gm/DMT and 19.79 gm/DMT, respectively. As announced in August 2008, Atlas subsidiary Carmen Copper Corporation (CCC) entered into anofftake agreement with MRI Trading AG which covers the first 30,000 Metnc Tons of copper concenttate (or 8,250 MT of contained copper) produced from the Carmen Copper Mine. Pursuant to this agreement copper concentrates delivered by CCC to MRI shall be sold at an average price of US$7,612.50 per MT. A Share Purchase Agreement (the "SPA') was recently executed by Alakor Corporation ('Alakor), Atlas, and various funds managed by the Spinnaker Capital Group (the'Lenders') with respect to the transfer by Alakor to the Lenders of 2.5 million of its common shares in Atlas in consideration of the extension of the term of the loan under the 23 July 2008 Loan Agreement between Atlas and the Lenders (the "Loan'). As disclosed on 27 November 2008, Atlas and the lenders executed an agreement allowing the lenders to extend the term of the loan to a period of 137 days, thereby moving the maturity date to 9 December 2008. in consideration of the transfer to the Lenders of 2. 5 million of Alakor's common shares in Atlas.
The Board of Directors of Benpres Holdings Corp. approved the execution of a voting trust agreement between BHC and Lopez, Inc. covering the former's 254,121,720 shares of stock in First Philippine Holdings Corp. BHC deems it beneficial to appoint Lopez, Inc. as its voting trustee with respect to its FPHC shares to protect legitimate creditors and shareholders of BHC and FPH against groups with hostile or inimical interests that wouls act against creatinbg or furthering shareholder values. Lopez, Inc. owns 54.61% of BHC's capital stock.
A.Brown (BRN). The franchise bill application of the National Grid Corporation of the Philippines (NGCP) has been approved and signed into law (Republic Act No. 9511) by the President of the Philippines Gloria M. Arroyo. The NGCP consortium is made up of Monte Oro Grid Resources Corp. (MOGRC), Calaca High Power Corp. and the State Grid Corporation of China. MOGRC is 100% owned by Monte Oro Resources and Energy, Inc. of which A Brown Co., Inc. owns 18.40% interest.
Metro Pacific Investments Corp. (MPI) will spend P5 billion to P6 billion to develop the Manila North Harbor – the country’s oldest and busiest seaport – in the next five years. The company hopes to finalize its negotiated bid to modernize the public port with partner North Harbour Centre Port Terminal, Inc. Mr. Manuel V. Pangilinan said the amount was just an initial estimate, adding that the money would be used to remove silt deposits at the port, which have accumulated over the years because of water flowing from the polluted Pasig River. MPI, the local unit of Hong Kong Based holding firm First Pacific Co. Ltd., will also have to reclaim land to expand the port. Metro Pacific was considering splitting the bill with Harbour Centre.
DMCI bought back a total of 1,916,000 shares at a price ranging from P2.16 to a high of P2.48 starting in November 27 to December 3, 2008.
Vista Land (VLL) bought back 500,000 shares at a price ranging from P0.94 to P0.95 last December 5, 2008.
The information contained herein is based on sources which we believe reliable but is not guaranteed by us. This is provided for informational purposes only and should not be constructed as an offer to buy or sell the security mentioned herein.
 Stocks to Watch
December 8, 2008
| |
PRICE |
SUPPORT |
RESISTANCE |
| AC |
178.00 |
130.00 |
150.00 |
200.00 |
220.00 |
| JFC |
37.00 |
33.00 |
35.00 |
39.00 |
41.00 |
| ALI |
5.70 |
5.10 |
5.40 |
6.00 |
6.30 |
| BPI |
38.50 |
34.00 |
36.00 |
40.00 |
42.00 |
| EDC |
2.38 |
2.08 |
2.22 |
2.60 |
2.80 |
| BDO |
23.50 |
20.00 |
22.00 |
26.00 |
28.00 |
| MER |
55.00 |
49.00 |
52.00 |
58.00 |
61.00 |
| MBT |
23.00 |
19.00 |
21.00 |
25.00 |
27.00 |
| GLO |
730.00 |
670.00 |
600.00 |
760.00 |
790.00 |
| MEG |
0.53 |
0.43 |
0.50 |
0.70 |
0.90 |
| SMPH |
6.60 |
6.00 |
6.30 |
6.90 |
7.20 |
| PX |
4.95 |
4.40 |
4.70 |
5.30 |
5.60 |
| SM |
169.00 |
150.00 |
163.00 |
190.00 |
210.00 |
| TEL |
2,355.00 |
2,300.00 |
2,350.00 |
2,400.00 |
2,450.00 |
Index Stocks
November 3, 2008
| |
52 WEEKS |
|
5YEARS |
|
EST |
|
|
BOOK |
| Stock |
HIGH |
LOW |
HIGH |
LOW |
EPS '08 |
EPS' 09 |
CASH DIV |
VALUE |
| AC |
533.33 |
179.00 |
537.50 |
137.44 |
20.30 |
22.00 |
2.00 |
200.00 |
| ABS |
34.50 |
13.50 |
38.50 |
10.25 |
1.60 |
1.80 |
0.80 |
19.25 |
| AEV |
7.80 |
4.80 |
9.70 |
2.70 |
0.85 |
0.90 |
0.31 |
7.10 |
| AGI |
5.80 |
1.46 |
7.30 |
1.46 |
0.33 |
0.35 |
0.02 |
4.70 |
| ALI |
17.00 |
5.10 |
19.25 |
4.08 |
0.37 |
0.40 |
0.06 |
3.70 |
| BDO |
63.00 |
21.75 |
73.00 |
16.50 |
2.00 |
2.40 |
1.60 |
23.50 |
| BPI |
58.75 |
33.33
|
61.25 |
24.31 |
2.90 |
3.30 |
1.65 |
21.50 |
| EDC |
7.60 |
2.30 |
7.80 |
2.30 |
0.45 |
0.47 |
0.125 |
2.50 |
| FLI |
1.88 |
0.36 |
2.44 |
0.36 |
0.07 |
0.08 |
0.02 |
1.50 |
| FPH |
86.50 |
12.25 |
92.00 |
12.25 |
3.00 |
3.60 |
2.00 |
66.00 |
| FGEN |
63.50 |
10.57 |
70.50 |
10.75 |
3.40 |
3.90 |
2.50 |
31.50 |
| GLO |
1,677.00 |
720.00 |
1,677.00 |
666.00 |
100.00 |
110.00 |
75.00 |
400.00 |
| JFC |
53.00 |
32.00 |
61.00 |
16.25 |
2.30 |
2.60 |
0.80 |
14.30 |
| ICT |
49.00 |
12.00 |
49.00 |
2.75 |
1.50 |
1.70 |
0.35 |
10.60 |
| MBT |
63.50 |
19.25 |
75.50 |
19.25 |
3.20 |
3.60 |
1.00 |
35.50 |
| MEG |
4.50 |
0.57 |
4.60 |
0.57 |
0.18 |
0.20 |
0.02 |
1.90 |
| MER |
89.50 |
36.00 |
105.45 |
11.36 |
3.40 |
3.75 |
1.0025 |
50.00 |
| MWC |
19.25 |
11.25 |
19.25 |
5.60 |
1.10 |
1.40 |
0.35 |
6.90 |
| PX |
8.65 |
3.85 |
8.65 |
0.24 |
1.35 |
1.20 |
0.35 |
3.40 |
| PCOR |
7.20 |
4.35 |
7.40 |
2.00 |
0.65 |
0.72 |
0.10 |
4.50 |
| RCB |
28.50 |
9.30 |
39.57 |
8.91 |
2.30 |
2.30 |
0.48 |
28.30 |
| RLC |
21.25 |
4.60 |
23.00 |
1.76 |
0.95 |
1.05 |
0.53 |
8.20 |
| SMPH |
12.25 |
6.30 |
13.50 |
4.35 |
0.48 |
0.53 |
0.24 |
3.30 |
| SM |
387.50 |
167.00 |
452.00 |
167.00 |
21.40 |
24.00 |
5.90 |
203.00 |
| SMC |
61.50 |
38.00 |
80.00 |
38.00 |
2.80 |
3.10 |
1.40 |
46.20 |
| TEL |
3,205.00
|
1,810.00 |
3285.00 |
720.00 |
200.00 |
220.00 |
138.00 |
600.00 |
| UBP |
51.00 |
20.25 |
66.50 |
20.25 |
4.00 |
4.40 |
1.80 |
43.00 |
| URC |
15.00 |
4.50 |
24.00 |
4.35 |
1.30 |
1.43 |
0.68 |
16.30 |
| VLL |
15.00 |
0.99 |
7.50 |
0.99 |
0.35 |
0.39 |
0.064 |
3.90 |
| |
|
|
|
|
|
|
|
|
Corporate Updates
December 5, 2008
Philex Mining Corp., the country's largest mining company, on Wednesday disclosed that it has recently shipped P615-million worth of metals.
The November 25 shipment consisted of 2.7 million pounds of copper and 10,445 ounces of gold.
For the third quarter of the year, Philex’s net income slid 29 percent to P1.07 billion owing to falling metal prices brought about by lower demand.
The corporate regulator approved on Tuesday a plan of listed NiHao Mineral Resources International, Inc. to sell P500 million worth of shares to stockholders to finance projects and settle debt.
NiHao will use almost two-thirds of the proceeds worth P483.8 million to fund the exploration and development of its projects in Botolan, Zambales and Manticao, Misamis Oriental, registration papers filed with the Securities and Exchange Commission (SEC) showed. The balance will be used to pay debt to shareholders
Philippine National Bank, the country's fourth largest private domestic bank in terms of assets and branch network, on Tuesday disclosed that its net income for the third quarter of the year dropped by nearly a fourth.
In a report to regulators, PNB said its earnings slid 23 percent to P857 million while pre-tax profits for first nine months of the year was lower by 1 percent to reached P1.6 billion.
The Manila Electric Co. (Meralco) said earnings fell by nearly one-third as it made provisions for possible losses after it was disallowed from collecting fees it earlier absorbed.
Meralco’s net income from July to September this year declined to P334 million, 27.4 percent lower than its earnings worth P460 million last year, it said in a disclosure to the Philippine Stock Exchange (PSE).
Losses were “due to the net effect of the P2.52 billion provision for probable losses arising from the generation cost disallowance and the P1.2 billion net over-recovery in transmission charges," the company said.
Metro Pacific Investments Corp. (MPIC) will spend P5 billion to P6 billion to develop the Manila North Harbor — the country’s oldest and busiest sea port — in the next five years.
The company hopes to finalize its negotiated bid to modernize the public port with partner Harbour Centre Port Terminal, Inc. "Hopefully, by December, we can finalize the terms of our investment," MPIC Chairman Manny V. Pangilinan told reporters on Monday.
Metro Pacific Investment Corp. (MPIC), which has interests in utilities and real-estate, may allot billions of pesos over a period of five years to improve the Manila North Harbor.
The company, which controls Maynilad Water Services Inc. (MWSI), is prepared to spend some P5 billion to P6 billion to modernize and expand operations at the Philippines’ largest, busiest, yet oldest port.
Philex Mining Corp., said it sold its treasury shares to Asia Link B.V., a company wholly-owned by First Pacific Co. Ltd. on November 28.
Comprising 20.06 percent of Philex’s total stocks, the sale of 778,620,792 shares was bought at P7.92 each, amounting to a total of P6.166 billion, the company said in a disclosure to the Philippine Stock Exchange (PSE).
Shares of Philex rose to P5.50 during Friday’s trading at the PSE, higher than Thursday’s price of P4.90.
Technical Updates
By Alan J. Araullo
October 13, 2008
NYMEX Crude Oil
(Click to enlarge)
The price of oil closed at 77$pbbl last Friday. It is now at it's support area and it is oversold. Expect oil to rebound to around 90$pbbl in the coming days.
Regina Smart Indicators
September 22, 2008
| 10-year Treasure Bonds |
Dividend Yield of the Phisix |
| 8.6981% pa |
4.73% pa
|
| 14-day RSI of Phisix |
Philippines P-E Multiple |
| 70.15 |
12 |
|
|
Chart
November 24- 28, 2008...... Last week the market broke the 1900 minor resistance level, closing at 1765. This week the market will again try to find a bottom. Technical indicators are still oversold. Support is 1650. Resistance is at 1900.
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