Viewpoint
The Lopez Group: Benpres Holdings Corporation
By Dr. Victor S. Limlingan
Chairman
June 15, 2009
Benpres Holdings Corporation (Benpres) was incorporated in 1993 by the Lopez family to serve as the holding company for investments in broadcasting and entertainment, cable television, telecommunications, power generation and distribution, infrastructure, real estate development, and health care delivery.
Benpres was listed at the Philippine Stock Exchange on November 25, 1993 through an IPO (Initial Public Offering) of P 3.0 billion. The offering was oversubscribed and its initial offering price rose four times. This was primarily due to Bayan Telecommunications Holdings Corporation (BayanTel). A joint venture with Bell Atlantic of the USA, BayanTel was intended to engage in fixed-line, international and domestic long distance services among others.... [Read Full Story]
Floor Tales
By Gomer F. Tan
VP Marketing
July 6 , 2009
With the declining market, investors are looking for companies that pay regular cash dividends like Ayala Preferred shares, Ayala Corp., Alaska Milk, Bank of the Philippine Islands, Banco de Oro, Centro Escolar University, Ginebra San Miguel, Globe Telecom, RLC, SM Investments, TEL and URC to name a few. While other investros are looking at the mining issues on speculation metal prices will go up.
DISCLOSURES:
PSBank - The Bank ended the first quarter 2009 with a Net Income after Tax of P303.73 million, 21% or P52.55 million more than the P251.18 million it posted in the same period last year. Net Interest income was 24% better at P1.04 billion from P838.53 million in March 2008. This was due to higher interest income from both loans and investment securities as total loan and investment portfolio increased year-on-year. The Bank’s Total Assets for the quarter ending March 31, 2009 reached P81.56 billion, 9% higher than the December 2008 level of P74.64 billion. Growth was primarily attributed to increases in investments in loans and receivables, government securities and interbank loans receivable and other cash items.
NRCP - National Reinsurance Corporation of the Phils. showed a net loss of P124 million in the 1st Qtr. 2009 as against net income of P110 million in the 1st Qtr. 2008. Reinsurance premiums for the three months ended March 31, 2009 increased by 13.6% to P824M from P726M for the three months ended March 31, 2008. Major sources of premium growth during the period induded the life and casualty lines. Notwithstanding the growth in gross premiums, net premiums retained in the first quarter of 2009 decreased by 2.9% to P336 million from P346 million during the comparable period in 2008. The lower retention ratio of 41% during 1st Qtr. 2009, compared to 48% during 1st Qtr. 2008, was due to the Company's adopting more conservative underwriting standards in reaction to a higher level of daims and losses in prior underwriting years. Premiums earned increased by 11.7%, from P320 million to P357 million due to a decrease of P 21.2 million in the reserve for unexpired risk during 1st Qtr. 2009. In 1st Qtr. 2008, the reserve for unexpired risk increased by P26.2 million after application of the 24th method of recognizing reinsurance premiums.
ACR - Alsons Consolidated Resources, Inc. will proceed with its plan to build a $450 million coal-fired power plant in Maasim, Sarangani Province. Construction of the 200MW facility will be implemented in two phases. The first phase will include the construction of the first 100MW plant and the common facilities for the power station complex. The second phase which represents the second 100-MW capacity will be started within 18 to 24 months after the start of construction of the first phase. The power plant is expected to go on-stream commercially by late 2012 at the earliest.
Economic Calendar
23 June 09 US State Street Investor confidence Index
24 June SRDC Stockholders Meeting
APX Stockholders Meeting
25 June US Jobless Claims
US Corporate Profit
26 June US Consumer Sentiment
29 June OPM Stockholders Meeting
30 June PPC Stockholders Meeting
PCKH Stockholders Meeting
The information contained herein is based on sources which we believe reliable but is not guaranteed by us. This report is provided for information purpose only and should not be construed as an offer to buy or sell the securities mentioned herein
 Stocks to Watch
July 6, 2009
| |
PRICE |
SUPPORT |
RESISTANCE |
| AC |
265.00 |
220.00 |
240.00 |
280.00 |
300.00 |
| ALI |
8.20 |
7.60 |
7.90 |
8.50 |
8.80 |
| BPI |
42.00 |
38.00 |
40.00 |
44.00 |
46.00 |
| EDC |
3.85 |
3.40 |
3.65 |
4.10 |
4.40 |
| GLO |
965.00 |
910.00 |
9.40 |
1,000.00 |
1,030.00 |
| MBT |
31.50 |
28.00 |
30.00 |
33.00 |
35.00 |
| MEG |
0.96 |
0.80 |
0.90 |
1.10 |
1.20 |
| MER |
145.00 |
125.00 |
135.00 |
155.00 |
161.00 |
| MPI |
5.80 |
5.20 |
5.50 |
6.10 |
6.40 |
| MWC |
14.25 |
12.00 |
13.50 |
16.00 |
18.00 |
| PX |
7.10 |
6.50 |
6.80 |
7.40 |
7.70 |
| SM |
300.00 |
260.00 |
280.00 |
320.00 |
340.00 |
| SMPH |
9.00 |
8.40 |
8.70 |
9.30 |
9.60 |
| TEL |
2,390.00 |
2,300.00 |
2,350.00 |
2,400.00 |
2,450.00 |
Index Stocks
April 6, 2009
| |
52 WEEKS |
|
5YEARS |
|
EST |
EST |
|
BOOK |
| Stock |
HIGH |
LOW |
HIGH |
LOW |
EPS '08 |
EPS' 09 |
CASH DIV |
VALUE |
| AC |
470.83 |
171.50 |
537.50 |
144.96 |
20.30 |
20.50 |
2.00 |
215.00 |
| ABS |
34.50 |
12.00 |
38.50 |
10.25 |
1.60 |
1.70 |
0.80 |
19.25 |
| AEV |
7.80 |
4.80 |
9.31 |
2.58 |
0.85 |
0.90 |
0.31 |
7.10 |
| AGI |
5.70 |
1.42 |
7.30 |
1.46 |
0.33 |
0.35 |
0.02 |
4.90 |
| ALI |
15.00 |
5.10 |
19.25 |
3.94 |
0.37 |
0.30 |
0.06 |
3.80 |
| BDO |
62.00 |
21.00 |
73.00 |
16.50 |
2.00 |
2.10 |
1.60 |
22.70 |
| BPI |
52.70 |
33.33
|
60.27 |
23.13 |
2.90 |
2.90 |
1.65 |
22.00 |
| EDC |
6.65 |
1.82 |
7.62 |
1.82 |
0.45 |
0.40 |
0.125 |
2.80 |
| FLI |
1.44 |
0.36 |
2.44 |
0.36 |
0.07 |
0.07 |
0.02 |
1.56 |
| FPH |
73.50 |
12.25 |
92.00 |
12.25 |
3.00 |
3.93 |
2.00 |
70.00 |
| FGEN |
61.50 |
9.50 |
70.50 |
9.50 |
3.40 |
3.90 |
2.50 |
31.50 |
| GLO |
1,581.25 |
720.00 |
1,677.00 |
646.11 |
100.00 |
100.00 |
75.00 |
400.00 |
| JFC |
52.50 |
32.00 |
61.00 |
16.25 |
2.30 |
2.60 |
0.80 |
15.00 |
| ICT |
46.00 |
12.00 |
49.00 |
2.75 |
1.50 |
1.70 |
0.35 |
10.60 |
| MBT |
57.00 |
19.25 |
75.50 |
19.25 |
3.20 |
3.40 |
1.00 |
36.50 |
| MEG |
4.10 |
0.50 |
4.60 |
0.50 |
0.18 |
0.18 |
0.02 |
2.00 |
| MER |
84.50 |
36.00 |
105.45 |
11.36 |
3.40 |
3.80 |
1.0025 |
52.00 |
| MWC |
19.25 |
11.25 |
19.25 |
5.60 |
1.10 |
1.40 |
0.35 |
7.70 |
| PX |
8.08 |
3.85 |
8.65 |
0.24 |
1.35 |
0.80 |
0.35 |
3.00 |
| PCOR |
6.50 |
4.15 |
7.40 |
2.00 |
0.65 |
0.50 |
0.10 |
4.60 |
| RCB |
24.50 |
9.30 |
39.57 |
8.91 |
2.30 |
2.00 |
0.48 |
29.00 |
| RLC |
16.50 |
4.60 |
23.00 |
1.76 |
0.95 |
1.05 |
0.53 |
8.50 |
| SMPH |
8.00 |
5.60 |
13.50 |
4.07 |
0.48 |
0.53 |
0.24 |
3.30 |
| SM |
367.50 |
165.00 |
452.00 |
165.00 |
21.40 |
21.00 |
5.90 |
210.00 |
| SMC |
61.50 |
38.00 |
80.00 |
38.00 |
2.80 |
3.00 |
1.40 |
47.00 |
| TEL |
3,141.91
|
1,810.00 |
3,220.34 |
780.22 |
200.00 |
210.00 |
138.00 |
610.00 |
| UBP |
43.50 |
20.00 |
66.50 |
20.00 |
4.00 |
3.60 |
1.80 |
44.00 |
| URC |
15.00 |
4.50 |
24.00 |
4.50 |
1.30 |
1.40 |
0.68 |
17.00 |
| VLL |
6.00 |
0.93 |
7.50 |
0.93 |
0.35 |
0.25 |
0.060 |
3.90 |
| |
|
|
|
|
|
|
|
|
Corporate Updates
June 18, 2009
SM Investments Corp., the Sy family’s holding company, has closed ahead of schedule the offering of its maiden bonds in the domestic public debt market owing to the huge demand.
“We closed bond offer last Monday, instead of the original closing date of Thursday, due to oversubscriptions," said Jose Sio, SM Investments' executive vice president and chief finance officer.
The holding firm of the Philippines' wealthiest family on Monday has announced that it doubled the amount of bonds it planned to sell to P10 billion.
As of June 15, the company reported that investment commitments had reached P13 billion.
Manila Electric Co., the country's largest power distributor, will likely borrow P8 billion to substitute older loans with better terms, treasurer Rafael Andrada said.
However, the new owners Philippine Long Distance Telephone Co. (PLDT) and conglomerate San Miguel Corp. would have to decide on the fund-raising as P2.5 billion has to be paid by yearend while P5 billion to P6 billion will mature by 2013.
“Maybe we will borrow but we have to defer (the decision) to the new owners. We need to refinance the loans and the timing could be better this year," Andrada said.
While it has earmarked P8.5 billion for capital expenditures, Meralco does not see the need to borrow.
“We could meet our capex requirement for the year (without the need to borrow)," Andrada said.
San Miguel Corp. (SMC), which has bought into non-core businesses, has set higher prices and yields of its soon-to-be issued preferred shares.
The move intends to encourage investors to exchange their common shares into the preferred securities, which will also help cut investors’ risks arising from San Miguel’s non-core investments in power and telecommunications.
With an issue price of P75 each, SMC’s preferred stock – which will not be listed – will offer a dividend rate of eight percent a year, the company told the Philippine Stock Exchange (PSE).
The new class of Series 1 preferred shares, which will have a par value of P5 each, is higher than San Miguel’s common shares traded at the Philippine Stock Exchange (PSE).
Technical Updates
By Alan J. Araullo
June 1 , 2009
NYMEX Crude Oil
(Click to enlarge)
The price of oil bottomed between December 08 and March 09. In my opinion the price of oil can go to a high of $ 70.
|
|
Chart
June 15-20, 2009..... Last week the market closed a breathe away from the 2600 level. The market is still overbought thus it is still vulnerable to a major correction.
This week the market will try to go above the neckline (2630), if successful the index next target is 2750.
Business World's
Stock Picks of the Week
PSE Video
Making It Work For You
 Short video about the stock market. Produced by PSE Cash and Stock Dividends
Weekly Outlook
for Investments
and Business
June 22, 2009
The market broke the uptrend it set few months back and all indices closed in the negative territory this week. Finally giving way to its overbought condition, PSEi pulled back and broke down the 2,400 support level at 2,398.30 points, a drop of 7.72% or 200.50 points. Due to the scarcity of catalysts on the domestic front, the local mart mostly took its cues from the U.S. market.
Investors were wavering during the start of the week as U.S. economic data were mixed but a stronger sell signal was triggered when the financial industry was dazed following Standard & Poor's credit rating which downgraded 22 banks, including Wells Fargo, Fifth Third and KeyCorp. More alarming was S&P’s statement that the financial business conditions will worsen as the industry becomes more volatile and regulatory supervision gets tighter. Thus, impression that the pace of the recession is stalling was substituted by renewed concern that the market has gotten ahead of itself.
|
