PSE Round-Up: November 7, 2012

PSE Market Summary:

The Philippine Stocks Market ended its two-day rally to P5,437.29, lower by 36.32 points. A total of 28,377 trades were recorded with 51 stocks advances, 114 declines and 47 remaining unchanged.

GMA7 Report P10.612 billion Net Income

GMA Network, Inc. (PSE:GMA7) posted net income of P10.612 billion for the first nine months of 2012, slightly higher thn P10.109 billion reported same period last year. GMA7 stocks closed at P8.50 for the day.

SMDC Net Income Increase by 5.7%

SM Development Corporation (PSE:SMDC) reported its net income from January to September 2012 P3.3 billion, up by 5.7% year on year. The increase was mainly due to expanded asset base and better real estate sales. SMDC shares closed at P6.30, higher by P.02 from yesterday.

TEL to Issue P5-6B Corporate Notes

Philippine Long Distance Telephone Company (PSE:TEL) intends to issue P5 to 6 billion corporate notes to refinance its existing debt. No further details have been finalized yet.

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 4, 2012

PSE Market Summary:

The Philippine Stocks Market is up third consecutive days to close at 5,443.74. All sectors were up led by Holding Firms (2.38%) and Industrial (.99%). There were 24,257 trades with 103 advancers, 63 decliners and 37 stocks remaining unchanged.

GMA7 and TEL End Discussions on Acquisition

GMA Network, Inc. (PSE:GMA7) and MediaQuest Holdings, Inc., an affiliate within PLDT Group (PSE:TEL), reported that both parties were unable to reach at a mutually acceptable terms on a possible acquisition. Both groups announced the termination of further discussions. Talks of possible acquisition have been reported a few weeks back.

BDO to Redeem Series 1 Notes

BDO Unibank, Inc. (PSE:BDO) announced that it will exercise its right to redeem all series 1 notes November 21, 2012, the designated optional redemption date. Redemption will be made in cash priced at face value plus accrued interest.

CEB Eyes Zest Air Acquisition

Cebu Air, Inc. (PSE:CEB) is one of three major parties eyeing possible acquisition of low cost carrier Zest Air, along with Philippine Airlines (PSE:PAL) and Hainan Air. CEB clarified that they have yet to assess for due dilligence check and any interest shown is non-binding at present.

ANS Declares Cash Dividend

A. Soriano Corporation (PSE:ANS) declared cash dividend as follows:

Cash                    P .25 per share

ex-date                Oct 15, 2012

record date         Oct. 18, 2012

payment date      Nov. 12, 2012

MWIDE Enters on a JV With Citicore

Megawide Construction Corporation (PSE:MWIDE) established a joint venture with Citicore Holdings Investment named Citicore-Megawide Consortium, Inc (JVC). The JVC will be formed to undertake the construction, leasing and maintenance of school buildings under the Public-Private Partnership project of the government.

FGEN Subsidiary Refinances Debt Obligation

FGP Corp, a subsidiary of First Gen Corporation (PSE:FGEN), signed a $420 million 10-year term loan facility with seven major bank lenders. The proceeds will be used to repay existing debt obligation of FGP and a portion of FGEN's debts.

PSE Round-Up: August 14, 2012

JFC Net Income Up 33%

Philippines' largest food service company Jollibee Foods Corporation (PSE:JFC) reported Net Income Attributable to Parent Company of P921 Million for 2Q2012, up 33% from P693 Million same period last year. The increase was attributed to foreign business growth most notably in US and Asia. Full report can be viewed here.

GMA Gross Revenues Up 1%

Media company GMA Network, Inc. (PSE:GMA) registered 6.79 Billion consolidated gross revenues for 2Q2012, up by P64 Million or 1% from last year. Net income after tax is P1.014 Billion, on rack to its full year target of P2 Billion. Full report can be viewed here.

MEG 1st Half Net Income Up 15%

Property developer Megaworld Corporation reported core net income of P3.69 Billion for the 1st half of 2012, up 15% from P3.21 Billion from previous year. The growth was due to continued strength in its residential sales and BPO office rentals. Full report can be viewed here.

FLI Net Income Up 19%; No Longer Bidding for FTI

Property developer Filinvest Land, Inc. (PSE:FLI) announced net income of P1.525 Billion, up 19% from P1.282 Billion generated same period last year. The growth was mainly due to the 28% increase in real estate sales. 

In a separate disclosure, the company announced in will no longer participate in the bidding for the 74-hectare FTI Property in Taguig. Management stated that acquiring said property at this time did not fit wtih its land banking strategy. 

SM Posts 13% Growth 1st Half

Conglomerate company SM Investments Corporation reported P10.9 Billion net income from P9.6 Billion same period last year, equivalent to 13% growth. The increase was driven by strong earnings in residential segment, banks and mall operations. Full report can be viewed here.

Atlas Core Income Reach P1.66 Billion

Atlas Consolidated Mining & Development Corporation reported core income of P1.66 Billion, 72% higher than last year. The improvement is attributed to rise in copper production and higher throughput.

GMA 7 Issues Cash Dividend

The board of Directors of GMA Network Inc. (PSE:GMA7) has agreed to declare a special cash dividend with details as follows:

Cash = P 0.26 per share

Ex-date  Aug. 16, 2012

Record Date Aug. 22, 2012

Payment Date Sept. 14, 2012

MVP's acquisition of GMA7 Still Up in the Air

In an interview during a commemorating event as a publicly listed company, CEO and President of GMA network (PSEGMA7) Atty. Felipe Gozon said that Manuel V. Pangilinan's talks of acquisition is in a "wait-and-see" mode. He further clarified that there was no set timeline if they are to pushthrough with the deal. 

It has been several months ago since rumors of acquisition surfaced.