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Strong cash flow is URC’s ammunition for growth, acquires Munchy

As can be seen from its financials in 2020, it is just a matter of time that URC strikes an acquisition.  Indeed URC signs a deal to acquire Munchy, Malaysia’s No. 1 biscuit maker, from CVC.  CVC is a global private equity giant in the league of KKR and Warburg Pincus. In 2020, URC boughtContinue reading “Strong cash flow is URC’s ammunition for growth, acquires Munchy”

Leviste’s Solar Nueva Ecija pulls an IPO bolder than Injap Sia’s MerryMart

Injap Sia pulled the public offering of MerryMart (MM) with a plan to reinvent the supermarket business to modern retail and a relatively small supermarket operation.  MM was offered at 1.0 a share but sizzled to a high of 8.56.  It is now trading at 3.15 levels, but it is still 3.15 times the offeringContinue reading “Leviste’s Solar Nueva Ecija pulls an IPO bolder than Injap Sia’s MerryMart”

Valuable ACEN shares as acquisitions currency show mastery of finance

Ayala’s strategy of hiring the smartest pays off.  ACEN, Ayala’s clean energy company, is a testament to that. Ayala infused its international clean energy assets to ACEN in exchange for shares valued at just 2.97 apiece.  Soon after, aided by the green energy PR, ACEN shares rose to 7-8 levels. Taking advantage of the highContinue reading “Valuable ACEN shares as acquisitions currency show mastery of finance”

GMA7’s empire ambitions may curtail distribution to shareholders

After the shutdown of ABS, GMA7 became the dominant television broadcaster and the primary source of free-to-air broadcasting within the country. The absence of a significant competitor allowed GMA7 to rack up revenue.  The substantial revenue improvement led to a strong cash flow from operations. The substantial improvement in cash flows from operations allowed GMA7Continue reading “GMA7’s empire ambitions may curtail distribution to shareholders”

DD needs fresh capital more than transformation announcement

On 19 November 2021, DoubleDragon (DD) announced that it had transformed from a property company to an investment holding company.  To signal its transformation, it dropped Properties in its name to just DoubleDragon Corporation. It seems that the market did not buy the transformation announcement.  DD continues to slide, hitting a 52-week low at 8.86Continue reading “DD needs fresh capital more than transformation announcement”

WLCON may be heading for a correction

Year-to-date Wilcon Depot (WLCN) has risen 93.03%. The market has placed a significant premium on WLCON. Its resiliency against the pandemic gave WLCON the premium. Despite the pandemic, WLCON has shown robust results, and the company is aggressively expanding. At the current price, the market has valued WLCON at 50.85 times earnings. At 30 PesosContinue reading “WLCON may be heading for a correction”

LTG yields 10.58%

LT Group (LTG) has been recently severely battered by net foreign selling. One year net foreign selling amounted to 3.97 Billion. The heavy foreign selling dropped LTG to a 52-week low of 8.50. As a result, LTG’s valuation dropped below its book value. LTG is currently trading at 0.5982 to book value. LTG is aContinue reading “LTG yields 10.58%”

GTCAP’s used car warranty venture foretells vehicle foreclosure armageddon

GT Capital Holdings (GTCAP) is the publicly listed holding company of the Ty family. GTCAP controls Metrobank (MBT) and owns Toyota dealerships in the country. Being big in banking and auto distribution, GTCAP must have a front seat view on the performance of vehicle financing. GTCAP’s new venture, Premium Warranty Services Philippines, will supply vehicleContinue reading “GTCAP’s used car warranty venture foretells vehicle foreclosure armageddon”

Lopez’s ABS and MVP of TEL had a CONVERGE vision with Sky Cable but Lopezes failed on execution

Converge ICT (CNVRG) rose from an obscure broadband company based in Pampanga to a national all fiber internet company valued at 300.68 Billion Pesos. Pampanga businessman Dennis Anthony Uy controlled CNVRG with the backing of the US private equity firm, Warburg Pincus. CNVRG’s commitment is to provide pure end-to-end fiber internet connection – from theirContinue reading “Lopez’s ABS and MVP of TEL had a CONVERGE vision with Sky Cable but Lopezes failed on execution”

Consunji’s DMC and Aboitiz’s AP sit on opposing ends of the coal trade, may explain their respective buying and selling of their companies’ shares

Two notable publicly listed companies are at the forefront in the coal trade. But the two are sitting on the opposite end of the coal trade. Their respective positions in the coal trade may explain their owner’s action. Aboitiz Power (AP), controlled by the Aboitiz family, is one of the biggest if not the biggestContinue reading “Consunji’s DMC and Aboitiz’s AP sit on opposing ends of the coal trade, may explain their respective buying and selling of their companies’ shares”

Surging coal could hurt AP, ACEN

Coal prices continue to surge. The rising coal price raises the fuel cost of coal-fired power plants. Notable publicly listed companies operating base-load coal plants are Aboitiz Power Corporation (AP) and AC Energy Corporation (ACEN). Semirara Mining and Power Corporation (SCC) is predominantly a coal miner with coal-fired power plants. ACEN operates the base loadContinue reading “Surging coal could hurt AP, ACEN”

Razon vs. Lopezes: diverging governance practices, diverging fortunes

Razon’s international Container Terminal Services (ICT) bought back 5,970,990 ICT shares at 191 per share from subsidiary IWI Container Terminal Holdings. The transaction valued at 1.1 Billion Pesos was crossed at the Philippine Stock Exchange on 17 September 2021. The transaction was brought about by the desire of the Razon controlled ICT to adopt theContinue reading “Razon vs. Lopezes: diverging governance practices, diverging fortunes”

AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high

In 2010 Aboitiz Equity Ventures (AEV) sold Aboitiz Transport System operating under the 2GO brand to Negros Navigation Co. (NENACO) for 3.5 Billion Pesos. AEV incurred a loss of 74.6 Million Pesos on the sale of 2GO. The loss may have been small, but AEV made an impairment charge before that of 2.1 Billion Pesos.Continue reading “AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high”

ESG repercussions – Cryptos going zero

Environmental, social and governance (ESG) guidelines for investing could bring cryptocurrencies to zero. Crypto mining underpins the existence of the crypto. Crypto mining is the computing process in the creation of a cryptocurrency and in the verification of a cryptocurrency transaction. It is an energy-intensive computing process. To save costs from its massive energy consumption,Continue reading “ESG repercussions – Cryptos going zero”

5 Peso cash dividend validated ICT’s strength

ICT’s 2020 financial results showed that revenue for 2020 surpassed its pre-pandemic revenue. That fact provides the cue that ICT is benefiting from the money printing around the world. Despite the pandemic induced lockdown around the world, demand for goods and materials remained buoyant as the world becomes awash with cash. ICT operating ports andContinue reading “5 Peso cash dividend validated ICT’s strength”

DMC principal stockholder hiked holdings in the company

One of the principal stockholders of DMC Holdings (DMC) is DFC Holdings. DFC Holdings is one of the two Consunji holding firms owning the controlling shares of DMC. As of 26 May 2020, DFC holdings controls 2,382,067,010 shares of DMC or about 17.94% of DMC. But as of 26 July 2021, those holdings have increasedContinue reading “DMC principal stockholder hiked holdings in the company”

ACEN’s 1H 2021 electricity profit margin compressed to 22% from 35%

AC Energy Corporation’s profit margin from sale of electricity was 22% in the first half of 2021. Revenue from sale of electricity during that period was 13.3 Billion Pesos while costs of electricity was 10.4 Billion Pesos. That would leave a gross profit of 2.9 Billion Pesos or 22% of sales. Compare that to 1HContinue reading “ACEN’s 1H 2021 electricity profit margin compressed to 22% from 35%”

Razon controlled Apex Mining is inching towards debt sustainability

The Enrique Razon controlled Apex Mining (APX) is making progress on its debt repayment. Over the years APX has been on negative free cash flows. The cash generated from its operations were not enough to cover its capital expenditures. It consistently borrowed money to pay debt and put cash on its balance sheet. In 2020Continue reading “Razon controlled Apex Mining is inching towards debt sustainability”

AP should learn from GMA7 that the proof of the pudding is in the eating

AP should learn from GMA Network (GMA7) that the proof of the pudding is in the eating. GMA7 a traditional-free-to-air broadcasting company saw a significant rise in share price when it declared 1.35 cash dividend. At the time of the dividend declaration GMA7 was just trading at a day high of 7.49 a share. TheContinue reading “AP should learn from GMA7 that the proof of the pudding is in the eating”

PLC yields 10.19%, results on track to sustain dividend distribution

Premium Leisure Corporation distributed a total of 1.3 Billion Pesos cash dividend to shareholders this year. With PLC currently trading at 0.41 a share the cash dividend amounts to a yield of 10.19%. The previous year was a horrible year for PLC. By year’s end PLC netted only 324 Million Pesos. Cash from operating activitiesContinue reading “PLC yields 10.19%, results on track to sustain dividend distribution”