Market values 5%-yielding Rockwell’s shares less than PHR’s

Rockwell Land Corporation (ROCK) declared a cash dividend of 0.0752 per common share.  With ROCK common shares trading at 1.46 apiece, the dividend translates to a cash dividend yield of 5.15%.

Despite ROCK being a dividend-yielding share, the market values it at just 31.67% of its book value per share of 4.61.  ROCK’s P/BV is less than half that of PHR’s, which is at 0.7662.  The market values PHR’s shares at 76.62% of its book value per share of 0.77.

Although ROCK has been accumulating interest-bearing debts, it is not the subject of a going concern.  At the end of the first quarter of 2023, long-term loans and borrowings increased by 2.2 billion from the end of 2022.

Lopez controlled ROCK earns 655 million in the first quarter of 2023 and can access bank loans.

While Dennis Uy’s PH Resorts Group Holdings (PHR) has a meager revenue from small hotel operations in Bohol.  Its more prominent hotels and casinos still need to be completed, and bank loans are due.  It hasn’t and probably can’t access new bank loans and financing to finish its hotels and casinos.

Surprisingly, PHR’s stock price hasn’t bottomed out.  It is still valued better than an operating real estate company like ROCK.  There is much speculation on the stock, especially since management has teased an ongoing talk with investors.

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