PSE Round-Up: December 11, 2012

PSE Market Summary:

The Philippine Stocks Market breached the 5,800 mark and closed to new high hitting 5,831.5 for the day. Total trades were up to 29,580 with 87 stocks advances, 83 declines and 47 stocks unchanged.

MIH to be Melco's Holding Company

Melco Crown Entertainment will backdoor-list its casino project through acquisition of Manchester International Holdings Unlimited Corporation (PSE:MIH). Once acquisition is completed, MIH will effectively become the holding company of MCE's hotel, casino, retail and entertainment project.

PSB Declares Cash Dividend

Philippine Savings Bank (PSE:PSB) declared regular cash dividend as follows:

cash                         =          P.75 per share

ex-date                    =          Dec. 20, 2012

record date             =          Dec. 27, 2012

payment date          =         Jan. 14, 2013

ABS to Offer Preferred Shares

ABS-CBN Corporation (PSE:ABS) approved the offering of 1 billion preferred shares with par of P.20 per share pro rata to its existing shareholders at an issue price of P.20 per share. The shares will have a fixed cummulative interest rate at 2% per annum on each anniversary date.

PSE Stock of the Week: GMA7 Falls 11.8% in 3 Days as Acquisition Talks End

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%.

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.

PSE Round-Up: October 1, 2012

PSE Market Summary:

The Philippine Stocks Market declined by .70% to close at 5,308.52. Intraday trades started positive but were soon dragged down by the afternoon trades. All subindices closed lower.

ABS Converts Common to Preferred Shares

Media broadcaster ABS-CBN Corporation (PSE:ABS) approved the reclassification of its 200 million common shares with P1 par value to be converted to 1 trillion cumulative, voting, non-participating, redeemable and non-convertible preferred shares with P .20 per share. 

SMC Defers IPO of Power Unit

San Miguel Corp. has deferred its plan for initial public offering for SMC Global Power Holdings to next yer, citing poor market conditions as the reason. The IPO could raise up to P36.6 billion for the group.

MRC Sells 40% of Mining Investments

MRC Allied, Inc. (PSE:MRC) agreed to sell 40% of its holdings in MRC Surigao Mines, Inc. to Mining & Mineral Investments company. MRC closed at .1540, down 1.91% from yesterday's trade.