i.t. matters
Tuesday, January 31, 2006 MANILA, PHILIPPINES
Philippine Silicon Valley
Interview with a venture capitalist
By DENNIS POSADAS
Consultant
UP Ayala Technology Business Incubator
Venture capital. To some, it evokes a mysterious form of financing that seems shrouded in mystery rather than something we take for granted. Unlike loan officers, venture capitalists are like a rare species.
Thus, on a sunny January morning, I decided to go into the concrete corporate jungle of Makati to meet a venture capitalist at his nest -- certainly not a nest of straw but a fancy plush office nest. The venture capitalist was Guilly Luchangco of ICCP Venture Partners.
Walking along the carpeted corridor leading to his office, I glance at the numerous deal and public offering announcements hanging like trophies along the walls. I see some familiar and unfamiliar names, but many with big amounts of money attached to them.
Then an assistant ushers me into his office. I saw a mestizo bespectacled Filipino-Chinese man in a dapper, grey suit. He shook my hand.
"Hi, I’m Guilly Luchangco."
EARLY YEARS
Asked how he got started, he recalled: "I went to La Salle for Engineering, B.S. Chemical Engineering (magna cum laude). I decided to work for Procter and Gamble in its factory. I was in research and development. Then I went to the United States to do my MBA at Harvard [Class of 1967]."
After getting his MBA from Harvard, Guilly felt his future was in the Philippines, and he packed his bags to go back home. His first job upon return was for a small group that owned a paper mill, a leather tannery and a tin recovery plant.
Guilly then moved to SGV where he spent 12 years at SGV in the management services division since he was not an accountant. For eight years, Guilly was the executive director of SGV Singapore. He subsequently joined Republic Glass Corp. as its president and vice-chairman for seven and a half years.
Then came the 1986 EDSA People Power revolution. "I saw some opportunities to get going on my own. So I started the ICCP Group. The group started with the Investment & Capital Corporation of the Philippines, an investment house." His partners initially included American Express Bank, AIG/Philamlife and Far East Bank. American Express, after a while, had to sell out its non-core businesses and their shares in ICCP went to the Development Bank of Singapore Far East Bank was eventually absorbed by BPI, which is now also a shareholder. Also, a number of prominent local businessmen are part of the venture.
PHILOSOPHIES
I decided to ask Guilly to demystify venture capital and what he thought of venture capital in this country. "I think venture capital is still relatively new and underdeveloped. A number of international venture capital offices had to close down here due to lack of government support, among others. "In countries like Singapore, Hong Kong, Taiwan, venture capital is strongly supported by the government. In Singapore, almost all the local venture capital firms have government equity in them and all of these governments gave strong incentives. That is one of the things that has not helped the local [venture capital] industry to grow."
Guilly said local entrepreneurs don’t understand the nature of the Silicon Valley model. "We run into so many of them [entrepreneurs] who think of what they believe the company will be [worth] in x number of years time, and that’s the value they want. They feel they are giving up too much if they don’t get that. Those future cash flows are not yet realized, and there is a big risk, and there are a lot of stumbling blocks along the way." He said many local entrepreneurs who approach venture capitalists forget that.
"Secondly, they don’t appreciate the valuable contributions that various groups need to put into it along the way to make it grow into what it should be," referring to venture capitalists like him. "They [the entrepreneurs] feel it’s a done deal."
"Because of this, there have been a number of deals we have declined to do here. In fact, people in the States are more reasonable. You can get a more decent deal. The way I look at it, [local entrepreneurs] shouldn’t be too worried (about diluting their ownership to venture capitalists] because with the venture capitalist, they create much more value, the guy who started the project still owns the majority, and therefore gains the most from it." I added that 100% of zero value is still zero. This referred to the futility of trying to hold on to ownership even if venture capitalists could offer to grow the value of the company, that it is better to have a smaller percentage of a big amount.
"In some of the deals we’ve done in the Philippines [such as the Ambergris call center, the guys who made the real killing were the proponents who started it. We didn’t do one-tenth as well as the proponents did." He said entrepreneurs think, "Hey, these guys [venture capitalists] will get something for nothing, that they are getting too much," adding these entrepreneurs forget they would have never gotten the funding if they didn’t approach the VCs to get to the point where they would become big enough to be able to do an initial public offer or be bought out by a foreign group.
RETURNING TO SET UP VENTURES
Well, I thought, its great to have money, but who has the ideas worth investing in? So I asked him if most of the ideas came from returning Filipinos or home-grown ones.
"I’ve seen a mix of people coming home and home-grown start-ups, but mostly at this point home-grown. In fact some of those who have gone into start-ups have done it in the States rather than here. There are a number of successful people in the States who are entrepreneurs and who are Filipino."
Guilly said we should encourage more of them to come back. "But to do that they have to see the development, and this is where the incentives come in. A climate that’s friendly to entrepreneurship, this definitely means less government bureaucracy and much faster reaction time for people who’d like to do business in the Philippines."
STOCK MARKET
Noting that US companies like Intel, Microsoft, Cisco and Apple wouldn’t have made it without a small business friendly stock market like the NASDAQ, I asked him whether it was important to have a local stock market friendly for entrepreneurs, or if having them list in the regional bourses was adequate. He said that a good stock market should not only be good for entrepreneurs, but also for the country as well.
"Unfortunately, at the present time, the stock market isn’t that active. It’s not the boom years. But for example, our investment house took Ionics public here in the Philippines. That was a startup by Larry Qua. But we have also helped two companies list in Singapore. Ionics and Fastech of Bong Belen have listed in Singapore." He added that a company of the Concepcion family listed in the NASDAQ. "When you are listing abroad, you have to convince an investor in, say, Singapore that it’s okay to invest in a company in the Philippines."
DIVERSIFICATION OF INVESTMENTS
Guilly told me that they were not just purely invested in technology. For instance, they also have an investment in hypermarkets (Shopwise, together with the Tantoco family). "If you’re in the States, you can afford to say, "I will only be in this end of the tech market." I will only specialize in electronic hardware of a certain type. But certainly the market in the Philippines is not that large," he said, referring to a lack of deal flow that would allow them to simply concentrate on technology opportunities locally.
GOING INTERNATIONAL
Guilly told me they have gone international because the world is now borderless. "We also have a venture capital company in the States that directs investments into opportunities there. In fact, we have an office in Palo Alto [California]." He mentioned of frequent videoconferencing with investor companies and other venture capitalists in the US.
UPS AND DOWNS
I asked him if there was ever a point in his life that he felt like quitting and immigrate abroad. "I never had that thought. Maybe I have always been optimistic. When I decided to go off on my own [to start ICCP, a number of people expressed concern that, wow, what you are doing is a very brave thing. But I always thought I would succeed in it." He added that ICCP’s forays into hypermarkets and real estate were tests for them; "I don’t think I have wavered in [those tests]."
PROUD MOMENTS
"In venture capital, what makes me very proud is the fact that we have gained recognition as a venture capital group even in the States. And now, we are sort of talking on equal terms with a number of major, smaller sized VC players even in the States. We normally make an investment of $1-2.5 million dollars, that’s our investment size."
Guilly said their original concept was to always help entrepreneurs in the Philippines. "If we would not be able to do these $1- to $2-million dollar investments, most of the entrepreneurs would be swamped. Very few of them would qualify for our investments. So we’ve always tried to keep our investment size small enough so that we could [help] our Filipino entrepreneurs."
PRINCIPLES HE LIVES BY
Recalling that many senior executives would often have symbols to help them make decisions, I asked Guilly if he had any role models, quotations or tokens he would turn to if he was about to embark on a major turning point. "I don’t have any quotations but I do have an underlying principle Id like to live up to. I always like to do my best to ensure that the deal is fair for both sides. Do your best to make both sides happy. Otherwise don’t do it."
So, there you go. An honest-to-goodness venture capitalist tells his thoughts to us, right from his nest. I leave, oblivious to a crew who are about to do a photoshoot on him.
Come to think of it, don’t you wish there were more guys like him?
Feedback www.bgn.org
Tuesday, January 31, 2006
PLDT, Philweb close to sealing deal
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=31&file=8
PLDT, Philweb close to sealing deal
Posted: 2:18 AM Jan. 31, 2006
Inquirer
INTERNET gaming firm Philweb Corp. said Monday it expected to sign this week an agreement to sell 20 percent of its outstanding shares to ePLDT, the technology unit of Philippine Long Distance Telephone Co. (PLDT).
"We are in the final stages of our negotiations [with ePLDT] and we expect to sign the MoA [memorandum of agreement] not later than this week," Philweb president Eric Recto said in a disclosure to the stock exchange.
Recto said that the price and payment terms for the investment are still being finalized.
Former trade and industry minister Roberto Ongpin controls Philweb.
Recto believes that the company had complied with rules of the Philippine Stock Exchange (PSE) when it disclosed last Jan. 26 the Philweb board of directors' approval of ePLDT's investment.
A wholly owned unit of PLDT, ePLDT is expected to buy 24 billion shares of Philweb.
Philweb's stock price Monday closed at P0.036, compared with P0.031 on Thursday, when the disclosure was made.
At Monday's closing price, the 24 billion shares would be worth P864 million.
Philweb is seeking clarification from the PSE on what caused PSE president Francis Lim issue a memorandum to stockbrokers on Saturday that called for "caution" on the "misleading disclosure" of Philweb on its impending deal with ePLDT.
The next day, the PSE president issued a revised memo with the words "caution" and "misleading" omitted but carried a reminder for the public "to exercise prudence in making investment decisions."
Recto said Philweb's Jan. 26 disclosure clearly stated that ePLDT had not yet made the investment and that the two companies were still negotiating the terms, including the price of the proposed investment.
"We would like to understand what's driving these somewhat confusing statements from the PSE," Recto said in an interview. "Nothing at this point has been mentioned to us, either in writing or verbally, that we did anything wrong"
He said the PSE even agreed that the statement on the Philweb-ePLDT deal was "a timely disclosure." Clarissa Batino, with INQ7.net
Copyright 2005 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=31&file=8
PLDT, Philweb close to sealing deal
Posted: 2:18 AM Jan. 31, 2006
Inquirer
INTERNET gaming firm Philweb Corp. said Monday it expected to sign this week an agreement to sell 20 percent of its outstanding shares to ePLDT, the technology unit of Philippine Long Distance Telephone Co. (PLDT).
"We are in the final stages of our negotiations [with ePLDT] and we expect to sign the MoA [memorandum of agreement] not later than this week," Philweb president Eric Recto said in a disclosure to the stock exchange.
Recto said that the price and payment terms for the investment are still being finalized.
Former trade and industry minister Roberto Ongpin controls Philweb.
Recto believes that the company had complied with rules of the Philippine Stock Exchange (PSE) when it disclosed last Jan. 26 the Philweb board of directors' approval of ePLDT's investment.
A wholly owned unit of PLDT, ePLDT is expected to buy 24 billion shares of Philweb.
Philweb's stock price Monday closed at P0.036, compared with P0.031 on Thursday, when the disclosure was made.
At Monday's closing price, the 24 billion shares would be worth P864 million.
Philweb is seeking clarification from the PSE on what caused PSE president Francis Lim issue a memorandum to stockbrokers on Saturday that called for "caution" on the "misleading disclosure" of Philweb on its impending deal with ePLDT.
The next day, the PSE president issued a revised memo with the words "caution" and "misleading" omitted but carried a reminder for the public "to exercise prudence in making investment decisions."
Recto said Philweb's Jan. 26 disclosure clearly stated that ePLDT had not yet made the investment and that the two companies were still negotiating the terms, including the price of the proposed investment.
"We would like to understand what's driving these somewhat confusing statements from the PSE," Recto said in an interview. "Nothing at this point has been mentioned to us, either in writing or verbally, that we did anything wrong"
He said the PSE even agreed that the statement on the Philweb-ePLDT deal was "a timely disclosure." Clarissa Batino, with INQ7.net
Copyright 2005 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Monday, January 30, 2006
Market to consolidate as coup rumors persist, say analysts
Market to consolidate as coup rumors persist, say analysts
By Zinnia B. Dela Peña
The Philippine Star 01/30/2006
The market will continue to consolidate this week as investors exercise a little caution given persistent coup rumors that are threatening the country’s improving outlook.
BPI Securities said the market may remain in consolidation as some investors may be on holiday due to the Lunar new year celebrations.
"The Phisix held support at the 2090 to 2100 range this is positive for the market. However, it still traded in a narrow range between 2103 and 2126, which indicates consolidation."
Last week, the main composite index rose 13.64 points or 0.65 percent to close at 2121.89 due to select bargain hunting after the government announced that the 2005 budget deficit was down to P146.5 billion, well below the P180 billion target.
AB Capital Securities said the market needs a fresh catalyst significant enough to attract more stock trades.
"The market has been moving sideways for almost four weeks now. It needs a fresh catalyst that is significant enough to stir stock prices from its current slumber. Consulting the PHISIX’s chart, one can see how the index advanced most rapidly on November 2, when the first leg of the expanded value added tax law was first implemented. It has since not looked back and is now trying to move to higher grounds. It remains to be seen whether the market can do a repeat performance with the increase in the value added tax rate this week," AB Capital Securities said.
Telecom stocks led gainers last week. Philippine Long Distance Telephone Co. (PLDT) rose P10 to P1,850 as it tracked the movement of its ADRs abroad. Also boosting demand for PLDT is a comment from an official that the telecoms firm will likely meet its profit target for 2005.
Banking stocks Metrobank, EPCIBank and Banco de Oro were also up. MBT added P0.50 to P30. BDO and EPCI, which are going through the process of a possible merger, closed at P61 and P36.50, respectively.
First Philippine Holdings Corp. closed unchanged at P49. The stock recovered after it dipped to an intraday low of P47.50 after the announcement that its sister unit First Generation Holdings Corp. cut the price of shares in its initial public offering to P47 per share, well below the targeted range of P51 to P62.
Philweb climbed P0.02 to close at P0.033 after it disclosed that ePLDT will acquire 20 percent of the company.
Property stocks Megaworld and Empire East also closed higher last week. Low interest rates and the strong dollar inflows boosted interest in the banking and property sectors.
BPI Securities said the market needs to close above 2,172 for the outlook to be bullish. A corrective move below the 2,090-2,100 range will likely be viewed negatively by the market.
By Zinnia B. Dela Peña
The Philippine Star 01/30/2006
The market will continue to consolidate this week as investors exercise a little caution given persistent coup rumors that are threatening the country’s improving outlook.
BPI Securities said the market may remain in consolidation as some investors may be on holiday due to the Lunar new year celebrations.
"The Phisix held support at the 2090 to 2100 range this is positive for the market. However, it still traded in a narrow range between 2103 and 2126, which indicates consolidation."
Last week, the main composite index rose 13.64 points or 0.65 percent to close at 2121.89 due to select bargain hunting after the government announced that the 2005 budget deficit was down to P146.5 billion, well below the P180 billion target.
AB Capital Securities said the market needs a fresh catalyst significant enough to attract more stock trades.
"The market has been moving sideways for almost four weeks now. It needs a fresh catalyst that is significant enough to stir stock prices from its current slumber. Consulting the PHISIX’s chart, one can see how the index advanced most rapidly on November 2, when the first leg of the expanded value added tax law was first implemented. It has since not looked back and is now trying to move to higher grounds. It remains to be seen whether the market can do a repeat performance with the increase in the value added tax rate this week," AB Capital Securities said.
Telecom stocks led gainers last week. Philippine Long Distance Telephone Co. (PLDT) rose P10 to P1,850 as it tracked the movement of its ADRs abroad. Also boosting demand for PLDT is a comment from an official that the telecoms firm will likely meet its profit target for 2005.
Banking stocks Metrobank, EPCIBank and Banco de Oro were also up. MBT added P0.50 to P30. BDO and EPCI, which are going through the process of a possible merger, closed at P61 and P36.50, respectively.
First Philippine Holdings Corp. closed unchanged at P49. The stock recovered after it dipped to an intraday low of P47.50 after the announcement that its sister unit First Generation Holdings Corp. cut the price of shares in its initial public offering to P47 per share, well below the targeted range of P51 to P62.
Philweb climbed P0.02 to close at P0.033 after it disclosed that ePLDT will acquire 20 percent of the company.
Property stocks Megaworld and Empire East also closed higher last week. Low interest rates and the strong dollar inflows boosted interest in the banking and property sectors.
BPI Securities said the market needs to close above 2,172 for the outlook to be bullish. A corrective move below the 2,090-2,100 range will likely be viewed negatively by the market.
PSE move to warn public vs investing in Philweb bucked
PSE move to warn public vs investing in Philweb bucked
By Zinnia B. Dela Peña
The Philippine Star 01/30/2006
Philweb Corp. has questioned the Philippine Stock Exchange’s (PSE) move to ask the public to take precaution prior to investing in the listed Internet firm.
The PSE’s move came on the heels of the announcement by Philweb of ePLDT’s planned purchase of 20 percent of the company controlled by former trade minister Roberto Ongpin.
Philweb president Eric Recto said he was surprised at the PSE’s action, noting that the company has not violated any securities law and continues to be in faithful compliance with the disclosure requirements for listed companies.
"The disclosure is very clear. I am a bit curious why the PSE has suddenly taken this position. I’m curious why the PSE called us at 10:30 in the evening Friday asking for additional information on our disclosure and then came out with a statement warning the public without even first hearing out our side," Recto said.
"Had we not disclosed we would then have been investigated. We were very upfront about the proposed deal. It was very clear that it has yet to be negotiated. Don’t they want companies to disclose. I am really curious what this is all about," Recto added.
Based on its disclosure to the PSE last Jan. 25, Philweb said its Board approved ePLDT’s acquisition of 20 percent of the resulting expanded capital of the listed Internet company.
In a statement issued over the weekend, PSE president Francis Lim stressed that nothing is final yet as Philweb has yet to conclude an agreement with ePLDT.
"We welcome investments in our listed companies. The proposed investment appears to be a strategic investment in the growing sector of the economy and that is, of course, very good for the country. But I like to emphasize that the proposed investment is not yet a done deal. And when such a deal is still yet to be negotiated, we hope our investors read the disclosure carefully before making their investment decision," Lim said.
Based on Philweb’s disclosures, three things are clear. "First, ePLDT has not yet made the investments in Philweb. Second, there is still no price for the shares to be subscribed by ePLDT. And third, the parties are still to negotiate the other terms and conditions of the proposed investment," Lim further said.
In the disclosure, Philweb said its management was authorized to negotiate and conclude the agreement with ePLDT with reference to the specific terms and conditions of the investment, including the subscription price of the shares, which will be in conformity with the rules of the PSE.
Upon completion of the proposed transaction, ePLDT will become a significant stockholder of Philweb, entitling it to three seats in the Board of the listed Internet firm.
This is the first time that the exchange has warned the public against a listed company or advised investors to take prudence before investing in a listed corporation.
The PSE normally asks listed companies to provide additional information on the proposed transactions or deals entered into with other companies.
Observers are questioning the PSE’s motive for doing so, given the disclosure made by Philweb is clear and that there was no unsual trading in shares of the listed company.
Shares of Philweb closed at P0.033 Friday, up P0.02 following the announcement that ePLDT will acquire 20 percent of the company PhilWeb provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures.
The company has proven itself to be the partner of choice for global companies keen on gaining a foothold in the Philippine gaming market with enabling technology partners such as Next Generation, Inc. (NextGen) of Hongkong and Kismet International, USA already on board.
By Zinnia B. Dela Peña
The Philippine Star 01/30/2006
Philweb Corp. has questioned the Philippine Stock Exchange’s (PSE) move to ask the public to take precaution prior to investing in the listed Internet firm.
The PSE’s move came on the heels of the announcement by Philweb of ePLDT’s planned purchase of 20 percent of the company controlled by former trade minister Roberto Ongpin.
Philweb president Eric Recto said he was surprised at the PSE’s action, noting that the company has not violated any securities law and continues to be in faithful compliance with the disclosure requirements for listed companies.
"The disclosure is very clear. I am a bit curious why the PSE has suddenly taken this position. I’m curious why the PSE called us at 10:30 in the evening Friday asking for additional information on our disclosure and then came out with a statement warning the public without even first hearing out our side," Recto said.
"Had we not disclosed we would then have been investigated. We were very upfront about the proposed deal. It was very clear that it has yet to be negotiated. Don’t they want companies to disclose. I am really curious what this is all about," Recto added.
Based on its disclosure to the PSE last Jan. 25, Philweb said its Board approved ePLDT’s acquisition of 20 percent of the resulting expanded capital of the listed Internet company.
In a statement issued over the weekend, PSE president Francis Lim stressed that nothing is final yet as Philweb has yet to conclude an agreement with ePLDT.
"We welcome investments in our listed companies. The proposed investment appears to be a strategic investment in the growing sector of the economy and that is, of course, very good for the country. But I like to emphasize that the proposed investment is not yet a done deal. And when such a deal is still yet to be negotiated, we hope our investors read the disclosure carefully before making their investment decision," Lim said.
Based on Philweb’s disclosures, three things are clear. "First, ePLDT has not yet made the investments in Philweb. Second, there is still no price for the shares to be subscribed by ePLDT. And third, the parties are still to negotiate the other terms and conditions of the proposed investment," Lim further said.
In the disclosure, Philweb said its management was authorized to negotiate and conclude the agreement with ePLDT with reference to the specific terms and conditions of the investment, including the subscription price of the shares, which will be in conformity with the rules of the PSE.
Upon completion of the proposed transaction, ePLDT will become a significant stockholder of Philweb, entitling it to three seats in the Board of the listed Internet firm.
This is the first time that the exchange has warned the public against a listed company or advised investors to take prudence before investing in a listed corporation.
The PSE normally asks listed companies to provide additional information on the proposed transactions or deals entered into with other companies.
Observers are questioning the PSE’s motive for doing so, given the disclosure made by Philweb is clear and that there was no unsual trading in shares of the listed company.
Shares of Philweb closed at P0.033 Friday, up P0.02 following the announcement that ePLDT will acquire 20 percent of the company PhilWeb provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures.
The company has proven itself to be the partner of choice for global companies keen on gaining a foothold in the Philippine gaming market with enabling technology partners such as Next Generation, Inc. (NextGen) of Hongkong and Kismet International, USA already on board.
Petron eyes P5-B net profit this yr.
Petron eyes P5-B net profit this yr.
By Donnabelle L. Gatdula
The Philippine Star 01/30/2006
Publicly-listed Petron Corp. expects to meet its P5 billion net income target for 2005, a ranking company official said over the weekend.
"We are on track. We are hopeful we can meet it," Petron chairman Nicasio Alcantara said.
As of end-September 2005, Petron – 40 percent-owned by the government through the Philippine National Oil Co. (PNOC) – posted a net income of P4.8 billion compared to P2.36 billion in the same period in 2004.
The company’s board will release the unaudited financial statement by end-February this year.
For 2006, Alcantara said they expect that income growth will be partially fueled by improved exports performance.
Last year, about 1/3 of Petron’s earnings were accounted for by exports. "We hope that exports will continue to drive growth for 2006," he said.
In the third quarter of 2005 alone, the oil firm’s export sales contributed P848 million or 34 percent of its income for the period.
In the first nine months of the year, export income contribution totaled P1.62 billion or more than a third of the company’s net income. Export volume also increased by 27 percent to 4.74 million barrels compared to 3.72 million barrels over the same period in 2004.
Petron president Khalid Al-Faddagh, in a separate interview, said the "outlook for 2006 would be better than 2005."
Aside from exports, he said another growth potential will be the company’s retail business particularly the company-owned and company-controlled (COCO) refilling stations.
Al-Faddagh said they hope to realize full gains from its $100 million Clean Air Act (CAA)-related modernization project which was completed this year.
Over the next three years, Petron has earmarked $300 million for additional refinery units allowing it to expand mixed xylene capacity and extract new petrochemical streams such as benzene, toluene, and propylene.
The investment will likewise optimize refinery operations through higher white product yields. The units are expected to go on stream at the beginning of 2008.
Petron continued to dominate the market – increasing its overall market share to 38.2 percent as of August 2005.
In the highly competitive retail market, the company continues to be the market leader with a share of 34.1 percent or a lead of 1.2 percent over its nearest competitor.
Petron has added 42 more outlets to its retail network since the start of the year. Its service station count of 1,246 remains the largest in the country.
By Donnabelle L. Gatdula
The Philippine Star 01/30/2006
Publicly-listed Petron Corp. expects to meet its P5 billion net income target for 2005, a ranking company official said over the weekend.
"We are on track. We are hopeful we can meet it," Petron chairman Nicasio Alcantara said.
As of end-September 2005, Petron – 40 percent-owned by the government through the Philippine National Oil Co. (PNOC) – posted a net income of P4.8 billion compared to P2.36 billion in the same period in 2004.
The company’s board will release the unaudited financial statement by end-February this year.
For 2006, Alcantara said they expect that income growth will be partially fueled by improved exports performance.
Last year, about 1/3 of Petron’s earnings were accounted for by exports. "We hope that exports will continue to drive growth for 2006," he said.
In the third quarter of 2005 alone, the oil firm’s export sales contributed P848 million or 34 percent of its income for the period.
In the first nine months of the year, export income contribution totaled P1.62 billion or more than a third of the company’s net income. Export volume also increased by 27 percent to 4.74 million barrels compared to 3.72 million barrels over the same period in 2004.
Petron president Khalid Al-Faddagh, in a separate interview, said the "outlook for 2006 would be better than 2005."
Aside from exports, he said another growth potential will be the company’s retail business particularly the company-owned and company-controlled (COCO) refilling stations.
Al-Faddagh said they hope to realize full gains from its $100 million Clean Air Act (CAA)-related modernization project which was completed this year.
Over the next three years, Petron has earmarked $300 million for additional refinery units allowing it to expand mixed xylene capacity and extract new petrochemical streams such as benzene, toluene, and propylene.
The investment will likewise optimize refinery operations through higher white product yields. The units are expected to go on stream at the beginning of 2008.
Petron continued to dominate the market – increasing its overall market share to 38.2 percent as of August 2005.
In the highly competitive retail market, the company continues to be the market leader with a share of 34.1 percent or a lead of 1.2 percent over its nearest competitor.
Petron has added 42 more outlets to its retail network since the start of the year. Its service station count of 1,246 remains the largest in the country.
First Gen to beef up its capacity
First Gen to beef up its capacity
By Donnabelle L. Gatdula
The Philippine Star 01/30/2006
First Generation Corp. (First Gen), the country’s largest Filipino-owned independent power producer (IPP), is planning to beef up its capacity by 1,500 MW by putting up new natural gas power plant and acquiring assets of the National Power Corp. (Napocor), a latest corporate research of CLSA Ltd. disclosed.
CLSA said First Gen would establish a 550-MW Greenfield natural gas power plant which will be in full commercial operation in three to four years or by 2009 to 2010.
According to the firm, they expect First Gen to spend at least $450 million for this particular project.
It said First Gen may fund the project through 30 percent equity and 70 percent via a 10-year loan. It said First Gen may also tap its existing partner British Gas to own up to 40 percent of the project.
Aside from the Greenfield project, CLSA said First Gen is also likely to acquire 1,000 MW brownfield plants at $1 million per MW. This move, it said, may increase the power firm’s earnings by P4.4 billion a year.
"First Gen’s net debt to equity may deteriorate from 30 percent in 2005 to 155 percent in 2006 assuming the acquisition is wholly-funded by debt but would steadily improve to 20 percent in 2009 inclusive of the 550 MW Greenfield expansion," it said.
First Gen is aggressively expanding its exposure in the power industry to encourage investors to take part in its $200-million initial public offering (IPO) on Feb. 10. Proceeds from the IPO amounting to about P11.2 billion will be used to acquire power generation assets of state-owned National Power Corp. (Napocor) and develop greenfield projects.
Incorporated in December 1998, First Gen is the primary holding company for the Lopez Group’s power generation business. It has been operating in the industry since 1993 through its parent First Philippine Holdings (FPH).
FPH made its first major investment in power generation via Bauang Private Power Corp. (BPPC). So far, First Gen has installed capacity of 1,727 MW and equity of 986 MW.
First Gen’s subsidiaries-First Gas Power Corp. (FGPC) and FGP Corp. developed, financed and now operate the 1,000 MW Santa Rita and 500-MW San Lorenzo plants, respectively.
These plants are in Batangas province and supply the Luzon grid which in turn supplies the majority of Filipino manufacturing industries. BPPC’s 225-MW plant, in which, First Gen effectively holds a 37.3 percent stake, is in La Union province and also feeds the Luzon grid.
In March 2005, First Gen acquired the 1.6 MW Agusan Mini-Hydro power plant from the Power Sector Assets and Liabilities Management Corp. (PSALM).
It also developed and operated through 50 percent-owned subsidiary Panay Power Corp. a 72 MW bunker-fired diesel fuel plant in Iloilo City. First Gen however sold its 50 percent stake in PPC for P1.09 billion in June 2003 to Claredon Towers Holdings, a subsidiary of Mirant Global Philippines Corp.
Through First Gas Renewables Inc. (FGRI), First Gen also expects to continue developing power generation facilities that use renewable energy sources particularly through min-hydro power plants.
First Gen also intends to develop additional gas-fired facilities related infrastructure such as gas pipelines, to fully leverage its joint venture partnerships with BG Plc.
By Donnabelle L. Gatdula
The Philippine Star 01/30/2006
First Generation Corp. (First Gen), the country’s largest Filipino-owned independent power producer (IPP), is planning to beef up its capacity by 1,500 MW by putting up new natural gas power plant and acquiring assets of the National Power Corp. (Napocor), a latest corporate research of CLSA Ltd. disclosed.
CLSA said First Gen would establish a 550-MW Greenfield natural gas power plant which will be in full commercial operation in three to four years or by 2009 to 2010.
According to the firm, they expect First Gen to spend at least $450 million for this particular project.
It said First Gen may fund the project through 30 percent equity and 70 percent via a 10-year loan. It said First Gen may also tap its existing partner British Gas to own up to 40 percent of the project.
Aside from the Greenfield project, CLSA said First Gen is also likely to acquire 1,000 MW brownfield plants at $1 million per MW. This move, it said, may increase the power firm’s earnings by P4.4 billion a year.
"First Gen’s net debt to equity may deteriorate from 30 percent in 2005 to 155 percent in 2006 assuming the acquisition is wholly-funded by debt but would steadily improve to 20 percent in 2009 inclusive of the 550 MW Greenfield expansion," it said.
First Gen is aggressively expanding its exposure in the power industry to encourage investors to take part in its $200-million initial public offering (IPO) on Feb. 10. Proceeds from the IPO amounting to about P11.2 billion will be used to acquire power generation assets of state-owned National Power Corp. (Napocor) and develop greenfield projects.
Incorporated in December 1998, First Gen is the primary holding company for the Lopez Group’s power generation business. It has been operating in the industry since 1993 through its parent First Philippine Holdings (FPH).
FPH made its first major investment in power generation via Bauang Private Power Corp. (BPPC). So far, First Gen has installed capacity of 1,727 MW and equity of 986 MW.
First Gen’s subsidiaries-First Gas Power Corp. (FGPC) and FGP Corp. developed, financed and now operate the 1,000 MW Santa Rita and 500-MW San Lorenzo plants, respectively.
These plants are in Batangas province and supply the Luzon grid which in turn supplies the majority of Filipino manufacturing industries. BPPC’s 225-MW plant, in which, First Gen effectively holds a 37.3 percent stake, is in La Union province and also feeds the Luzon grid.
In March 2005, First Gen acquired the 1.6 MW Agusan Mini-Hydro power plant from the Power Sector Assets and Liabilities Management Corp. (PSALM).
It also developed and operated through 50 percent-owned subsidiary Panay Power Corp. a 72 MW bunker-fired diesel fuel plant in Iloilo City. First Gen however sold its 50 percent stake in PPC for P1.09 billion in June 2003 to Claredon Towers Holdings, a subsidiary of Mirant Global Philippines Corp.
Through First Gas Renewables Inc. (FGRI), First Gen also expects to continue developing power generation facilities that use renewable energy sources particularly through min-hydro power plants.
First Gen also intends to develop additional gas-fired facilities related infrastructure such as gas pipelines, to fully leverage its joint venture partnerships with BG Plc.
Saturday, January 28, 2006
The return of a market favorite (C&P Homes)
The return of a market favorite
By Emeterio Sd Perez
Section Editor
THE stockholders of C&P Homes Inc.-3,314 as of December 31,2004 owning outstanding common shares of 4,796,071,922-may finally see a glimpse of hope in the recovery of the company which, many years ago, was among the market's favorites.
Their bullishness may have stemmed from the fact that the company owned by the Aguilar family owns a huge landbank with market value that had gone up to over P11 billion today. The property is spread in the Calabarzon area, Antipolo and Teresa in Rizal and Bulacan.
With such fundamental-huge landbank-that makes a property company attractive to investors, most of the individuals among the over 3,000 stockholders have kept their shares since 1995, when C&P Homes sold shares through an initial public offering. They have long been hoping for a miracle to happen.
The much-anticipated miracle did not happen. Instead, the majority owners came to their rescue by saving C&P Homes from further fall.
Late last year, C&P Homes underwent a complicated corporate process in order to return to financial health. But the process has been paying off as far as the surge in the company's share price is concerned.
From a low of P0.12 in 2003, C&P Homes shares have hit a high of P2.34.
Finally, C&P Homes is back. All it took to restore market interest is a corporate act by its controlling stockholders who have proven that they, not outsiders appointed by a court, can successfully rehabilitate their company.
Instead of going to court and asking that the C&P Homes be placed under receivership, Fine Properties, Adelfa Properties and Brittany Corp. decided to convert their advances in the company into shares of stock. The process is called debt-to-equity swap.
Fine Properties own the equivalent of 60.026 percent of C&P Homes outstanding shares; Brittany , 9.63 percent; and Adelfa Properties, 1.031 percent.
Without court intervention, C&P Homes implemented a quasi-reorganization, a corporate act which involves reducing the company's authorized capital stock from P5 billion to P500 million. It then increased the latter-P500 million-to P7 billion at par value of P1.
Under a quasi-reorganization, the amount resulting from the reduction is applied to the deficit of P9.502 billion C&P Homes had piled up over the years.
Deficit refers to accumulated losses of a company. In contrast, a profitable company accumulates what is defined in the financial statement as retained earnings.
After the reduction, C&P Homes increased its authorized capital from P500 million to P7 billion to accommodate the debt-to-equity swap. Fine Properties got 2,516,596,308 shares at P1 per share; Adelfa Properties, 995,852,683 shares; and Brittany , 169,462,650 shares.
The information on C&P Homes' rehabilitation is contained in various disclosures the property company submitted to the Securities and Exchange Commission and the Philippine Stock Exchange.
Among these filings was the issuance of P3-billion long-term commercial papers approved by the SEC in 1996 to C&P Homes. These LTCPs were held by Fine Properties, Adelfa Properties and Brittany, which-unable to collect-exchanged them for shares in C&P Homes.
Completing the internal rehabilitation process was the application of additional paid-in capital to wipe out C&P Homes' deficits.
The additional paid-in of P4,834,618,966 and the reduction surplus of P4,316,464,737-totaling P9,151,083,703 effectively reduced the company's P9,530,517,614 deficit to P379,433,911.
The reduction surplus did not come from the reduction in authorized capital but from the reduction in the subscribed and paid-up capital.
C&P Homes had paid-up shares of 4,796,071,929, which decreased to 4,316,464,737 by subtracting from it 479,607,192, representing the corresponding number of paid-up shares-4,796,071,929 divided by 10 because the authorized capital stock was reduced 10 times-in the capital stock of P500 million.
Additional paid-in capital represents the premium over par value paid by stockholders for additional share issuances. This-along with reduction surplus, retained earnings or deficits-is included in a company's financial reports defined as stockholders' equity.
The quasi-reorganization appeared to have given C&P Homes a big lift in the market. Historical prices showed the company's shares hit is lowest at P0.12 in the first quarter of 2003 and P0.15 in the same quarter in 2004.
Late last year, PSE suspended the trading on C&P shares pending completion of the capital restructuring. When trading resumed on December 14, its share price opened at P2.28 and closed at its high of P2.34. It closed Thursday at P1.80.
By Emeterio Sd Perez
Section Editor
THE stockholders of C&P Homes Inc.-3,314 as of December 31,2004 owning outstanding common shares of 4,796,071,922-may finally see a glimpse of hope in the recovery of the company which, many years ago, was among the market's favorites.
Their bullishness may have stemmed from the fact that the company owned by the Aguilar family owns a huge landbank with market value that had gone up to over P11 billion today. The property is spread in the Calabarzon area, Antipolo and Teresa in Rizal and Bulacan.
With such fundamental-huge landbank-that makes a property company attractive to investors, most of the individuals among the over 3,000 stockholders have kept their shares since 1995, when C&P Homes sold shares through an initial public offering. They have long been hoping for a miracle to happen.
The much-anticipated miracle did not happen. Instead, the majority owners came to their rescue by saving C&P Homes from further fall.
Late last year, C&P Homes underwent a complicated corporate process in order to return to financial health. But the process has been paying off as far as the surge in the company's share price is concerned.
From a low of P0.12 in 2003, C&P Homes shares have hit a high of P2.34.
Finally, C&P Homes is back. All it took to restore market interest is a corporate act by its controlling stockholders who have proven that they, not outsiders appointed by a court, can successfully rehabilitate their company.
Instead of going to court and asking that the C&P Homes be placed under receivership, Fine Properties, Adelfa Properties and Brittany Corp. decided to convert their advances in the company into shares of stock. The process is called debt-to-equity swap.
Fine Properties own the equivalent of 60.026 percent of C&P Homes outstanding shares; Brittany , 9.63 percent; and Adelfa Properties, 1.031 percent.
Without court intervention, C&P Homes implemented a quasi-reorganization, a corporate act which involves reducing the company's authorized capital stock from P5 billion to P500 million. It then increased the latter-P500 million-to P7 billion at par value of P1.
Under a quasi-reorganization, the amount resulting from the reduction is applied to the deficit of P9.502 billion C&P Homes had piled up over the years.
Deficit refers to accumulated losses of a company. In contrast, a profitable company accumulates what is defined in the financial statement as retained earnings.
After the reduction, C&P Homes increased its authorized capital from P500 million to P7 billion to accommodate the debt-to-equity swap. Fine Properties got 2,516,596,308 shares at P1 per share; Adelfa Properties, 995,852,683 shares; and Brittany , 169,462,650 shares.
The information on C&P Homes' rehabilitation is contained in various disclosures the property company submitted to the Securities and Exchange Commission and the Philippine Stock Exchange.
Among these filings was the issuance of P3-billion long-term commercial papers approved by the SEC in 1996 to C&P Homes. These LTCPs were held by Fine Properties, Adelfa Properties and Brittany, which-unable to collect-exchanged them for shares in C&P Homes.
Completing the internal rehabilitation process was the application of additional paid-in capital to wipe out C&P Homes' deficits.
The additional paid-in of P4,834,618,966 and the reduction surplus of P4,316,464,737-totaling P9,151,083,703 effectively reduced the company's P9,530,517,614 deficit to P379,433,911.
The reduction surplus did not come from the reduction in authorized capital but from the reduction in the subscribed and paid-up capital.
C&P Homes had paid-up shares of 4,796,071,929, which decreased to 4,316,464,737 by subtracting from it 479,607,192, representing the corresponding number of paid-up shares-4,796,071,929 divided by 10 because the authorized capital stock was reduced 10 times-in the capital stock of P500 million.
Additional paid-in capital represents the premium over par value paid by stockholders for additional share issuances. This-along with reduction surplus, retained earnings or deficits-is included in a company's financial reports defined as stockholders' equity.
The quasi-reorganization appeared to have given C&P Homes a big lift in the market. Historical prices showed the company's shares hit is lowest at P0.12 in the first quarter of 2003 and P0.15 in the same quarter in 2004.
Late last year, PSE suspended the trading on C&P shares pending completion of the capital restructuring. When trading resumed on December 14, its share price opened at P2.28 and closed at its high of P2.34. It closed Thursday at P1.80.
Online stock broker drums up technology
Manila Bulletin
BUSINESS
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Online stock broker drums up technology
Fri Jan 27,2006
Online stock brokerage firm CitisecOnline, Inc. is eyeing to capture a bigger share of the investing public as it goes full blast in educating the public about trading online.
Currently with 500 clients, CitisecOnline eyes to double this by the end of the year as they convince current investors who trade through traditional brokerages to convert to online trading.
CitisecOnline’s client base are mostly males from 26 to 45 years old but a housewife and investors from the Visayas are among its top traders. It also counts females below 30 years old as clients and recognizes the segment as a market wit vast potential.
The company estimates that the retail investor base of the market could grow as much as 250,000 which is half of the initial subscriber base of Petron Corp.’s IPO in 1004, one of the most widely placed stock offerings in the history of the Philippine Stock Exchange.
CitisecOnline hopes to convert majority of current investors, who now trade through the traditional brokerages, to online trading offering commissions as low as 0.25 percent, offhours trade placements, fundamental and technical analysis and other features as come-ons. It also has incorporated a customer service hotline to provide customer support and technical assistance.
The company is set to launch next week a multimillion advertising campaign to encourage retail investors via the Internet.
"We believe that the growth of Internet usage has made online trading a lot easier and more attractive to many," company president Conrado Bate said. He relates that the company’s online facility has been warmly received with the top clients accounting for a monthly average turnover of P5 million each.
According to Bate, Internet trading in general have leveled the playing field for stock market investors. Online trading – which offers speed, convenience and efficiency – has allowed investors to place their orders at the price they desire and to be less dependent on a personal broker who can only process so many orders via telephone during peak trading hours.
CitisecOnline also provides the online investors enough information previously filtered by the traditional broker. These include the most active stocks, top 20 gainers and lowers, heavily traded stocks, all the way to broker information. The availability of such data pushes the first-time stock investor to learn more and be less reliant on a broker’s advise, observes Juanis Barredo, CitisecOn-line vice-president.
BUSINESS
--------------------------------------------------------------------------------
Online stock broker drums up technology
Fri Jan 27,2006
Online stock brokerage firm CitisecOnline, Inc. is eyeing to capture a bigger share of the investing public as it goes full blast in educating the public about trading online.
Currently with 500 clients, CitisecOnline eyes to double this by the end of the year as they convince current investors who trade through traditional brokerages to convert to online trading.
CitisecOnline’s client base are mostly males from 26 to 45 years old but a housewife and investors from the Visayas are among its top traders. It also counts females below 30 years old as clients and recognizes the segment as a market wit vast potential.
The company estimates that the retail investor base of the market could grow as much as 250,000 which is half of the initial subscriber base of Petron Corp.’s IPO in 1004, one of the most widely placed stock offerings in the history of the Philippine Stock Exchange.
CitisecOnline hopes to convert majority of current investors, who now trade through the traditional brokerages, to online trading offering commissions as low as 0.25 percent, offhours trade placements, fundamental and technical analysis and other features as come-ons. It also has incorporated a customer service hotline to provide customer support and technical assistance.
The company is set to launch next week a multimillion advertising campaign to encourage retail investors via the Internet.
"We believe that the growth of Internet usage has made online trading a lot easier and more attractive to many," company president Conrado Bate said. He relates that the company’s online facility has been warmly received with the top clients accounting for a monthly average turnover of P5 million each.
According to Bate, Internet trading in general have leveled the playing field for stock market investors. Online trading – which offers speed, convenience and efficiency – has allowed investors to place their orders at the price they desire and to be less dependent on a personal broker who can only process so many orders via telephone during peak trading hours.
CitisecOnline also provides the online investors enough information previously filtered by the traditional broker. These include the most active stocks, top 20 gainers and lowers, heavily traded stocks, all the way to broker information. The availability of such data pushes the first-time stock investor to learn more and be less reliant on a broker’s advise, observes Juanis Barredo, CitisecOn-line vice-president.
Banco de Oro GDRs listed in London; $115.6M raised
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=28&file=3
Banco de Oro GDRs listed in London; $115.6M raised
Posted: 3:02 AM Jan. 28, 2006
Inquirer
AN investment firm of mall magnate Henry Sy listed 9.1 million Global Depositary Receipts (GDRs) of its banking affiliate Banco de Oro Universal Bank on the London Stock Exchange (LSE) on Thursday.
The GDR offer, made at $12.70 apiece, generated about $115.6 million, equivalent to about P6.1 billion.
Primebridge Holdings Inc., a subsidiary of Sy's flagship company SM Investments Corp., listed the shares on the LSE. It owns 22 percent of Banco de Oro.
The GDRs -- a fund-raising instrument traded on the overseas market -- are equivalent to 16.8 percent of Banco de Oro's total outstanding shares. Each GDR represents 20 shares.
The Banco de Oro GDRs are said to be the only Philippine issue listed on the LSE.
The GDR deal was managed by Macquarie Bank Ltd.
Inquirer sources said the GDRs fetched a price of $13.70 apiece when listed on Thursday. They said 41 percent of the demand came from investors in the United States, 32 percent from Europe, and the remainder from Asia.
SM Investments chief financial officer Jose Sio said, "The success of this GDR offering reaffirms international investors' confidence in the Banco de Oro team, and the strategy that they are undertaking."
The funds to be raised from the GDR offer will be set aside for Banco de Oro's expansion and future acquisitions.
Banco de Oro president Nestor Tan had said the "proceeds will be used for various SM Investment projects, including the purchase of more Equitable PCI Bank shares, should these become available."
Banco de Oro has proposed a merger with Equitable PCI, the country's third-largest bank in assets, of which the SM group has become the biggest shareholder.
A shareholder of Equitable PCI, the state pension fund Government Service Insurance System, is opposing the merger proposal for offering what it considers too low a price, and is offering its shareholding to investors at a higher price. Elizabeth L. Sanchez, with INQ7.net
Copyright 2005 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=28&file=3
Banco de Oro GDRs listed in London; $115.6M raised
Posted: 3:02 AM Jan. 28, 2006
Inquirer
AN investment firm of mall magnate Henry Sy listed 9.1 million Global Depositary Receipts (GDRs) of its banking affiliate Banco de Oro Universal Bank on the London Stock Exchange (LSE) on Thursday.
The GDR offer, made at $12.70 apiece, generated about $115.6 million, equivalent to about P6.1 billion.
Primebridge Holdings Inc., a subsidiary of Sy's flagship company SM Investments Corp., listed the shares on the LSE. It owns 22 percent of Banco de Oro.
The GDRs -- a fund-raising instrument traded on the overseas market -- are equivalent to 16.8 percent of Banco de Oro's total outstanding shares. Each GDR represents 20 shares.
The Banco de Oro GDRs are said to be the only Philippine issue listed on the LSE.
The GDR deal was managed by Macquarie Bank Ltd.
Inquirer sources said the GDRs fetched a price of $13.70 apiece when listed on Thursday. They said 41 percent of the demand came from investors in the United States, 32 percent from Europe, and the remainder from Asia.
SM Investments chief financial officer Jose Sio said, "The success of this GDR offering reaffirms international investors' confidence in the Banco de Oro team, and the strategy that they are undertaking."
The funds to be raised from the GDR offer will be set aside for Banco de Oro's expansion and future acquisitions.
Banco de Oro president Nestor Tan had said the "proceeds will be used for various SM Investment projects, including the purchase of more Equitable PCI Bank shares, should these become available."
Banco de Oro has proposed a merger with Equitable PCI, the country's third-largest bank in assets, of which the SM group has become the biggest shareholder.
A shareholder of Equitable PCI, the state pension fund Government Service Insurance System, is opposing the merger proposal for offering what it considers too low a price, and is offering its shareholding to investors at a higher price. Elizabeth L. Sanchez, with INQ7.net
Copyright 2005 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Index climbs on continued gains by heavyweight PLDT
Index climbs on continued gains by heavyweight PLDT
The Philippine Star 01/28/2006
Share prices closed 0.19 percent higher yesterday as continued gains in index heavyweight Philippine Long Distance Telephone Co. (PLDT) allowed the market to push its recent modest advance, dealers said.
They said the gains, however, were capped by profit-taking before the Lunar New Year holiday, when many fund managers are expected to be on vacation.
The composite index rose 4.08 points to 2,121.89 after trading between 2,117.81 and 2,126.16. Volume was 2.59 billion shares worth P1.32 billion.
The all-shares index rose 4.22 points to 1,024.46.
Gainers led losers 44 to 25, with 56 stocks unchanged.
"Investors are positioning ahead of the 2005 earnings reports, with PLDT widely expected to report another good set of results," said Nestor Aguila of DA Market Securities.
PLDT, the most actively traded stock, closed P1 higher at P1,850. Rival Globe Telecom was up P5 at P755.
San Miguel A-shares were steady at P63.50 while its B-shares fell P1 to P86.
As it had been the previous day, PLDT was the most actively traded stock, rising 0.5 percent to P1,850, following the 2.8-percent advance in the company’s American Depositary Receipts in New York Thursday.
"The market is still seeking its natural level," said DA Market Securities President Nestor Aguila.
Analysts are looking forward to some good news such as a credit rating upgrade within the first quarter, he said.
The possible upgrade hinges on the improving fiscal outlook with the scheduled implementation next month of the increase in the value added tax rate to 12 percent from 10 percent, following the VAT law passed in November.
In the next session, the market is expected to take its cue from the 2005 economic growth figures set to be released Monday.
Other active stocks included First Holdings, which is engaged in tollway operation and power generation, closing unchanged at P49. The stock hit an intraday low of P47.50 because of news its power generating unit First Gen settled for an initial public offer price of P47, well below the initial range, upon the request of investors.
PhilWeb rose 6.5 percent to 0.033 after it announced earlier this week that PLDT unit, ePLDT, has acquired a 20-percent stake in the information technology concern. – AFP, AP
The Philippine Star 01/28/2006
Share prices closed 0.19 percent higher yesterday as continued gains in index heavyweight Philippine Long Distance Telephone Co. (PLDT) allowed the market to push its recent modest advance, dealers said.
They said the gains, however, were capped by profit-taking before the Lunar New Year holiday, when many fund managers are expected to be on vacation.
The composite index rose 4.08 points to 2,121.89 after trading between 2,117.81 and 2,126.16. Volume was 2.59 billion shares worth P1.32 billion.
The all-shares index rose 4.22 points to 1,024.46.
Gainers led losers 44 to 25, with 56 stocks unchanged.
"Investors are positioning ahead of the 2005 earnings reports, with PLDT widely expected to report another good set of results," said Nestor Aguila of DA Market Securities.
PLDT, the most actively traded stock, closed P1 higher at P1,850. Rival Globe Telecom was up P5 at P755.
San Miguel A-shares were steady at P63.50 while its B-shares fell P1 to P86.
As it had been the previous day, PLDT was the most actively traded stock, rising 0.5 percent to P1,850, following the 2.8-percent advance in the company’s American Depositary Receipts in New York Thursday.
"The market is still seeking its natural level," said DA Market Securities President Nestor Aguila.
Analysts are looking forward to some good news such as a credit rating upgrade within the first quarter, he said.
The possible upgrade hinges on the improving fiscal outlook with the scheduled implementation next month of the increase in the value added tax rate to 12 percent from 10 percent, following the VAT law passed in November.
In the next session, the market is expected to take its cue from the 2005 economic growth figures set to be released Monday.
Other active stocks included First Holdings, which is engaged in tollway operation and power generation, closing unchanged at P49. The stock hit an intraday low of P47.50 because of news its power generating unit First Gen settled for an initial public offer price of P47, well below the initial range, upon the request of investors.
PhilWeb rose 6.5 percent to 0.033 after it announced earlier this week that PLDT unit, ePLDT, has acquired a 20-percent stake in the information technology concern. – AFP, AP
SEC okays Filinvest Land’s increase in capital stock
SEC okays Filinvest Land’s increase in capital stock
By Zinnia B. Dela Peña
The Philippine Star 01/28/2006
The Securities and Exchange Commission (SEC) has approved Filinvest Land Inc.’s increase in authorized capital stock to P16 billion from P10 billion.
The capital hike is intended to cover FLI’s planned stock dividend declaration.
Of the increase in authorized capital stock, at least 25 percent or P1.5 billion has been subscribed and fully paid in the form of stock dividends to be taken out of the unrestricted retained earnings as of Dec. 31, 2004, amounting to P6.29 billion.
The stock dividends shall be distributed propertionately among the stockholders of record as of such record date to be fixed by the SEC after all requisite approvals have been obtained.
As of May 27, 2005, FLI is 31.56 percent foreign owned.
FLI is eyeing a 12 percent to 15 percent increase in its sales this year, mainly coming from its middle-income housing projects. Net earnings are likewise seen to grow by 10 percent this year.
For 2005, the company expects to post a 10 percent rise in its net profit on sales of P3.3 billion. Last year, FLI reported a net income of P595.9 million, 17 percent higher than the previous year’s P508.5 million.
Bullish on the property sector, FLI has lined up 12 new projects, mostly located in Metro Manila. Around P1.4 billion has been earmarked for its capital expenditures this year, which will come from internally generated funds.
Of the 12 projects to be launched this year, three are affordable housing projects valued at between P1 million and P1.5 million. Two will rise in Sto. Tomas Batangas while the remaining one will be located in Calamba Laguna.
FLI also plans to launch two middle-income housing and two high-end housing projects, all within Metro Manila. The housing units catering to the high-end-market are priced at P2.5 million to P3 million.
Another three middle-income housing projects will be launched in Cebu and Davao to extend their presence out of Metro Manila.
Aside from this, FLI is constructing two Asenso Village projects, one in Calamba, Laguna and the other in Tanza, Cavite. Development cost for both projects is estimated to be between P100 million and P120 million with a total of 951 lots to be sold.
Asenso Village is designed as a business park devoted to the development of start-up and expanding SMEs.
By Zinnia B. Dela Peña
The Philippine Star 01/28/2006
The Securities and Exchange Commission (SEC) has approved Filinvest Land Inc.’s increase in authorized capital stock to P16 billion from P10 billion.
The capital hike is intended to cover FLI’s planned stock dividend declaration.
Of the increase in authorized capital stock, at least 25 percent or P1.5 billion has been subscribed and fully paid in the form of stock dividends to be taken out of the unrestricted retained earnings as of Dec. 31, 2004, amounting to P6.29 billion.
The stock dividends shall be distributed propertionately among the stockholders of record as of such record date to be fixed by the SEC after all requisite approvals have been obtained.
As of May 27, 2005, FLI is 31.56 percent foreign owned.
FLI is eyeing a 12 percent to 15 percent increase in its sales this year, mainly coming from its middle-income housing projects. Net earnings are likewise seen to grow by 10 percent this year.
For 2005, the company expects to post a 10 percent rise in its net profit on sales of P3.3 billion. Last year, FLI reported a net income of P595.9 million, 17 percent higher than the previous year’s P508.5 million.
Bullish on the property sector, FLI has lined up 12 new projects, mostly located in Metro Manila. Around P1.4 billion has been earmarked for its capital expenditures this year, which will come from internally generated funds.
Of the 12 projects to be launched this year, three are affordable housing projects valued at between P1 million and P1.5 million. Two will rise in Sto. Tomas Batangas while the remaining one will be located in Calamba Laguna.
FLI also plans to launch two middle-income housing and two high-end housing projects, all within Metro Manila. The housing units catering to the high-end-market are priced at P2.5 million to P3 million.
Another three middle-income housing projects will be launched in Cebu and Davao to extend their presence out of Metro Manila.
Aside from this, FLI is constructing two Asenso Village projects, one in Calamba, Laguna and the other in Tanza, Cavite. Development cost for both projects is estimated to be between P100 million and P120 million with a total of 951 lots to be sold.
Asenso Village is designed as a business park devoted to the development of start-up and expanding SMEs.
Thursday, January 26, 2006
Index advances on positive economic news
Index advances on positive economic news
The Philippine Star 01/26/2006
Shares advanced for a second session yesterday as investors focused on a narrower than expected 2005 budget deficit and the general downtrend in commercial banks’ nonperforming loans.
The benchmark 30-company Philippine Stock Exchange Index rose 9.12 points, or 0.4 percent, to 2,112.49, after gaining 0.2 percent Tuesday.
AB Capital Securities analyst Erwin Balita said sentiment has improved, partly on expectation of an eventual credit rating outlook moving forward.
He said the government was on the right track after it reported earlier this week a P146.5-billion budget deficit for 2005, short of the target of P180 billion.
"On the corporate side, banks’ NPLs have improved since September, so we believe this is good for the overall economy," said Balita.
The market, however, failed to sustain much of its gains by the time trading ended.
Blue chip Philippine Long Distance Telephone Co. was the most actively traded stock, up 2.6 percent at P1,795, in step with the 2.1- percent rise in the company’s American depositary receipts in New York Tuesday.
Traders said the stock may have also gained on expectation that Hong Kong’s First Pacific, which has a controlling interest in PLDT, is keen on acquiring shares in a company that holds a substantial interest in the Philippines’ largest telecommunications group.
Ayala Land rose 2.5 percent to P10.25, after The Philippine Star reported Wednesday the Ayala group was looking into expanding its mall operations, which are under Ayala Land, to India.
First Philippine Holdings lost 6.7 percent to close at P48.50, possibly in reaction to some concern over the initial public offering of its unit, First Gen.
PLDT drove the rebound after a report major shareholder First Pacific of Hong Kong planned to increase its stake in the Philippines’ largest telecommunications firm, dealers said.
"Renewed foreign interest in PLDT is a vote of confidence not just in the company but also in the economy," said Nestor Aguila of DA Market Securities.
He said Asian equities markets are making a comeback after being shaken last week by a spike in oil prices and fraud allegations surrounding Internet firm Livedoor in Tokyo.
"They have now settled down and have gotten back their composure although some risks still remain," Aguila said.
AB Capital Securities research head Jose Vistan said investors have also started to take positions before the two percentage-point increase in the 10-percent value-added tax rate on Feb. 1, which is seen to further boost the government’s finances. – AP, AFP
The Philippine Star 01/26/2006
Shares advanced for a second session yesterday as investors focused on a narrower than expected 2005 budget deficit and the general downtrend in commercial banks’ nonperforming loans.
The benchmark 30-company Philippine Stock Exchange Index rose 9.12 points, or 0.4 percent, to 2,112.49, after gaining 0.2 percent Tuesday.
AB Capital Securities analyst Erwin Balita said sentiment has improved, partly on expectation of an eventual credit rating outlook moving forward.
He said the government was on the right track after it reported earlier this week a P146.5-billion budget deficit for 2005, short of the target of P180 billion.
"On the corporate side, banks’ NPLs have improved since September, so we believe this is good for the overall economy," said Balita.
The market, however, failed to sustain much of its gains by the time trading ended.
Blue chip Philippine Long Distance Telephone Co. was the most actively traded stock, up 2.6 percent at P1,795, in step with the 2.1- percent rise in the company’s American depositary receipts in New York Tuesday.
Traders said the stock may have also gained on expectation that Hong Kong’s First Pacific, which has a controlling interest in PLDT, is keen on acquiring shares in a company that holds a substantial interest in the Philippines’ largest telecommunications group.
Ayala Land rose 2.5 percent to P10.25, after The Philippine Star reported Wednesday the Ayala group was looking into expanding its mall operations, which are under Ayala Land, to India.
First Philippine Holdings lost 6.7 percent to close at P48.50, possibly in reaction to some concern over the initial public offering of its unit, First Gen.
PLDT drove the rebound after a report major shareholder First Pacific of Hong Kong planned to increase its stake in the Philippines’ largest telecommunications firm, dealers said.
"Renewed foreign interest in PLDT is a vote of confidence not just in the company but also in the economy," said Nestor Aguila of DA Market Securities.
He said Asian equities markets are making a comeback after being shaken last week by a spike in oil prices and fraud allegations surrounding Internet firm Livedoor in Tokyo.
"They have now settled down and have gotten back their composure although some risks still remain," Aguila said.
AB Capital Securities research head Jose Vistan said investors have also started to take positions before the two percentage-point increase in the 10-percent value-added tax rate on Feb. 1, which is seen to further boost the government’s finances. – AP, AFP
Monday, January 23, 2006
Technical rebound seen
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=23&file=8
MARKETPLAY
Technical rebound seen
Posted: 3:00 AM Jan. 23, 2006
Inquirer
(Published on Page B1 of the January 23, 2006 issue of the Philippine Daily Inquirer)
INVESTORS MAY EXPERIENCE A BREATHER from the stock market's correction as a technical rebound and the expected positive sentiment from the imminent implementation of a 2-percentage point increase in the value-added tax are expected to boost prices this week.
In a research note to its clients, AB Capital Securities said the market has already "worked off some excesses" from its "steep rally" since Nov. 1, 2005.
The brokerage firm said the Philippine Stock Exchange index was moving very close to its major support level of 2,090 where it is expected to make a recovery.
On a weekly basis, the market fell 40.02 points or 1.86 percent. It closed Friday at 2,108.24.
"The index failed in its attempt to breach the 2,172 mark and looks to be entering a consolidation mode," AB Capital said.
On the positive side, however, investors are counting on the full implementation of the VAT Law next week to push prices higher.
"When the dust settles, the only major catalyst for the market will be the full implementation of the expanded value-added tax law by Feb. 1," the stock brokerage firm said. "This will shift the market's attention away from the coup worries and bring investors back from the sidelines."
"Despite the market's recent weakness, many are still optimistic about 2006's prospects because of hopes for an end to the government's fiscal woes, a retreat in oil prices and strong foreign demand for Philippine stocks," AB Capital said.
Stocks to watch this week include banking issues, especially after the central bank revealed that the industry's loan portfolio was showing signs of life toward the end of 2005.
Daxim L. Lucas
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=23&file=8
MARKETPLAY
Technical rebound seen
Posted: 3:00 AM Jan. 23, 2006
Inquirer
(Published on Page B1 of the January 23, 2006 issue of the Philippine Daily Inquirer)
INVESTORS MAY EXPERIENCE A BREATHER from the stock market's correction as a technical rebound and the expected positive sentiment from the imminent implementation of a 2-percentage point increase in the value-added tax are expected to boost prices this week.
In a research note to its clients, AB Capital Securities said the market has already "worked off some excesses" from its "steep rally" since Nov. 1, 2005.
The brokerage firm said the Philippine Stock Exchange index was moving very close to its major support level of 2,090 where it is expected to make a recovery.
On a weekly basis, the market fell 40.02 points or 1.86 percent. It closed Friday at 2,108.24.
"The index failed in its attempt to breach the 2,172 mark and looks to be entering a consolidation mode," AB Capital said.
On the positive side, however, investors are counting on the full implementation of the VAT Law next week to push prices higher.
"When the dust settles, the only major catalyst for the market will be the full implementation of the expanded value-added tax law by Feb. 1," the stock brokerage firm said. "This will shift the market's attention away from the coup worries and bring investors back from the sidelines."
"Despite the market's recent weakness, many are still optimistic about 2006's prospects because of hopes for an end to the government's fiscal woes, a retreat in oil prices and strong foreign demand for Philippine stocks," AB Capital said.
Stocks to watch this week include banking issues, especially after the central bank revealed that the industry's loan portfolio was showing signs of life toward the end of 2005.
Daxim L. Lucas
copyright ©2006 INQ7money.net all rights reserved
Friday, January 20, 2006
Govt instability continues to spook market
Business Mirror
January 20, 2006
http://www.businessmirror.com.ph/2006/0120/20%20cos%20govtinstability.php
Govt instability continues to spook market
THE Philippine stock index posted its biggest two-day decline in a month after four military officers who participated in a mutiny to try to oust President Gloria Macapagal- Arroyo in 2003 bolted from jail. Ayala Corp. and San Miguel Corp. led the decline.
The four soldiers, who escaped on January 17, issued a statement Thursday saying they are part of a bigger group in the military who want to end corruption in government. Justice Secretary Raul Gonzalez said the escape may be part of a plot against the government, ABS-CBN News Channel reported.
"Some investors are getting jittery because of the noise created by this development," said Mark Canizares, an analyst at CitisecOnline. "Events like these are encouraging some investors to take their profits."
The Philippine Stock Exchange Composite Index fell 16.37, or 0.8 percent, to 2,109.08 at the noon close in Manila , extending Wednesday's 1.3-percent decline. The index had its biggest two-day decline since a 2.3-percent slump on December 18 and 19.
The 2003 mutiny, which involved about 300 soldiers, was one of a series of challenges Mrs. Arroyo has faced since she took power in 2001 following a civilian-military revolt against then President Joseph Estrada.
San Miguel Corp.'s Class A shares, equity in the nation's largest food and drinks company which are reserved for Filipinos, fell 50 centavos, or 0.8 percent, to P63.50, its lowest since July 21. Equitable PCI Bank, its third-largest lender by asset, fell P2.50, or 3.9 percent, to P62, its biggest decline since October 4.
Ayala Corp., owner of the nation's largest property developer, biggest bank by market value and its second-biggest mobile-phone company, fell P2.50, or 0.8 percent, to P325.
The Philippine index, Southeast Asia's second-biggest gainer in 2005 with a 15-percent gain, is the only decliner among the major stock benchmarks in Asia as of 12:16 p.m. local time. Wednesday's decline pared the index's gain this year to 0.6 percent.
The International Container Terminal Services Inc. retreated after climbing 15 percent in two days on speculation a bidding war for Peninsular & Oriental Steam Navigation Co. will boost other port operators.
ICTSI, the nation's largest non-government owned port operator, fell 25 centavos, or 2.1 percent, to P11.50. The stock on Wednesday climbed to a record on speculation that Singapore's PSA International Pte. and DP World of Dubai's competing bids for P&O will boost the value of other port operators.
Metropolitan Bank & Trust Co., the nation's largest lender by assets, fell P1, or 3.1 percent, to P31, bringing this week's decline to 7.5 percent.
"The postponement of the sale is adding to the negative sentiment in the market,'' said Jerome Gonzalez, who helps manage $15 million at Manila's PhilEquity Fund.
Shares worth P752 million (US$14.2 million) were traded, 30- percent less the six-month daily average and the smallest in more than two weeks. Losers edged gainers, 47 to 27, with 57 unchanged. Bloomberg
January 20, 2006
http://www.businessmirror.com.ph/2006/0120/20%20cos%20govtinstability.php
Govt instability continues to spook market
THE Philippine stock index posted its biggest two-day decline in a month after four military officers who participated in a mutiny to try to oust President Gloria Macapagal- Arroyo in 2003 bolted from jail. Ayala Corp. and San Miguel Corp. led the decline.
The four soldiers, who escaped on January 17, issued a statement Thursday saying they are part of a bigger group in the military who want to end corruption in government. Justice Secretary Raul Gonzalez said the escape may be part of a plot against the government, ABS-CBN News Channel reported.
"Some investors are getting jittery because of the noise created by this development," said Mark Canizares, an analyst at CitisecOnline. "Events like these are encouraging some investors to take their profits."
The Philippine Stock Exchange Composite Index fell 16.37, or 0.8 percent, to 2,109.08 at the noon close in Manila , extending Wednesday's 1.3-percent decline. The index had its biggest two-day decline since a 2.3-percent slump on December 18 and 19.
The 2003 mutiny, which involved about 300 soldiers, was one of a series of challenges Mrs. Arroyo has faced since she took power in 2001 following a civilian-military revolt against then President Joseph Estrada.
San Miguel Corp.'s Class A shares, equity in the nation's largest food and drinks company which are reserved for Filipinos, fell 50 centavos, or 0.8 percent, to P63.50, its lowest since July 21. Equitable PCI Bank, its third-largest lender by asset, fell P2.50, or 3.9 percent, to P62, its biggest decline since October 4.
Ayala Corp., owner of the nation's largest property developer, biggest bank by market value and its second-biggest mobile-phone company, fell P2.50, or 0.8 percent, to P325.
The Philippine index, Southeast Asia's second-biggest gainer in 2005 with a 15-percent gain, is the only decliner among the major stock benchmarks in Asia as of 12:16 p.m. local time. Wednesday's decline pared the index's gain this year to 0.6 percent.
The International Container Terminal Services Inc. retreated after climbing 15 percent in two days on speculation a bidding war for Peninsular & Oriental Steam Navigation Co. will boost other port operators.
ICTSI, the nation's largest non-government owned port operator, fell 25 centavos, or 2.1 percent, to P11.50. The stock on Wednesday climbed to a record on speculation that Singapore's PSA International Pte. and DP World of Dubai's competing bids for P&O will boost the value of other port operators.
Metropolitan Bank & Trust Co., the nation's largest lender by assets, fell P1, or 3.1 percent, to P31, bringing this week's decline to 7.5 percent.
"The postponement of the sale is adding to the negative sentiment in the market,'' said Jerome Gonzalez, who helps manage $15 million at Manila's PhilEquity Fund.
Shares worth P752 million (US$14.2 million) were traded, 30- percent less the six-month daily average and the smallest in more than two weeks. Losers edged gainers, 47 to 27, with 57 unchanged. Bloomberg
First Pacific buys PLDT shares for $74.1M
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URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=20&file=4
First Pacific buys PLDT shares for $74.1M
Posted: 2:06 AM | Jan. 20, 2006
XFN-Asia
HONG KONG-based conglomerate First Pacific Co Ltd. said Thursday it bought an additional 2.425 million shares in Philippine Long Distance Telephone Co. (PLDT), representing about 1.3 percent of the total issued PLDT common shares, for 74.1 million dollars.
It said the purchase was intended to minimize the dilutive impact of the conversion of outstanding PLDT convertible preferred shares and share options into new common shares on its investment in PLDT.
Before the purchases on the open market, done between June 2 and Jan. 17, First Pacific had a 24.2-percent stake in PLDT. After the acquisition, its stake became 24.1 percent.
PLDT said earlier Thursday that the shareholdings of First Pacific and two other big shareholders shrank last month as a result of an increase in its outstanding common shares.
It said Metro Pacific Resources Inc, a unit of First Pacific's Philippine holding firm Metro Pacific Corp., dropped to 9.47 percent at end-December from 9.87 percent in November.
The holdings of Japan's NTT Communications Corp. fell to 13.98 percent at end-December from 14.57 percent in November.
NTT owns a total of 25.27 million PLDT common shares.
Holding firm Philippine Telecommunications Investment Corp.'s holding fell to 14.40 percent at end-December from 15.01 percent in November, PLDT said. With INQ7.net
Copyright 2006 Xinhua Financial News Service-Asia, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=20&file=4
First Pacific buys PLDT shares for $74.1M
Posted: 2:06 AM | Jan. 20, 2006
XFN-Asia
HONG KONG-based conglomerate First Pacific Co Ltd. said Thursday it bought an additional 2.425 million shares in Philippine Long Distance Telephone Co. (PLDT), representing about 1.3 percent of the total issued PLDT common shares, for 74.1 million dollars.
It said the purchase was intended to minimize the dilutive impact of the conversion of outstanding PLDT convertible preferred shares and share options into new common shares on its investment in PLDT.
Before the purchases on the open market, done between June 2 and Jan. 17, First Pacific had a 24.2-percent stake in PLDT. After the acquisition, its stake became 24.1 percent.
PLDT said earlier Thursday that the shareholdings of First Pacific and two other big shareholders shrank last month as a result of an increase in its outstanding common shares.
It said Metro Pacific Resources Inc, a unit of First Pacific's Philippine holding firm Metro Pacific Corp., dropped to 9.47 percent at end-December from 9.87 percent in November.
The holdings of Japan's NTT Communications Corp. fell to 13.98 percent at end-December from 14.57 percent in November.
NTT owns a total of 25.27 million PLDT common shares.
Holding firm Philippine Telecommunications Investment Corp.'s holding fell to 14.40 percent at end-December from 15.01 percent in November, PLDT said. With INQ7.net
Copyright 2006 Xinhua Financial News Service-Asia, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
Thursday, January 19, 2006
SMC’s Guangdong Brewery posts 21% sales hike in 2005
SMC’s Guangdong Brewery posts 21% sales hike in 2005
By Zinnia B. Dela Peña
The Philippine Star 01/19/2006
http://www.philstar.com/philstar/NEWS200601190704.htm
Food and beverage giant San Miguel Corp. (SMC) yesterday reported that its San Miguel Guangdong Brewery (SMGB) in South China registered sales revenue of $21.38 million last year, up 21 percent from 2004.
Sales volume rose 16 percent, mainly driven by SMGB’s intensified marketing tack intended to enhance its Dragon brand portfolio’s visibility in the region, considered as one of the fastest growing beer markets in China.
Last year, SMGB also developed new packaging for its brands including a new canned variant for its local flagship brand, Dragon Beer.
The Guangdong brewery, inaugurated by SMC in 1994 as San Miguel Shunde Brewery, also fortified its leadership in the economy segment of the beer market in South China with its introduction of Valor in 640 ml bottles in the city of Shunde.
SMGB also gained wider access into the premium beer market in South China through San Miguel Pale Pilsen and Platinum Dragon Beer which won medals for quality excellence in this year’s Monde Selection.
SMC said Dragon Beer won an award from the international quality rating institution.
San Miguel Baoding Brewery (SMBB), San Miguel’s corporate vehicle for its North china operations, registered revenues of $16.8 million in 2005 or an increase of 13 percent from the previous year on higher sales volume.
Sales volume likewise went up 22 percent in sales volume with Blue Star Beer being the major contributor.
Blue Star Beer brand accounts for 96 percent of the San Miguel beer sales revenues in Northern China.
Other brands contributing to SMC North China operations’ growth include San Miguel Pale Pilsen, San Mig Light and Valor which like Blue Star are perennial winners of gold medals of excellence in the international product quality competition, Monde Selection.
SMBB is located in the western part of the 309.3 square-km Baoding City (about half the size of Metro Manila) in Hebei province, which is in the middle of three other major densely-populated cities: Tianjin, Shijiazhuang and China’s capital, Beijing.
The North China SMC operations started in 1996 with San Miguel’s purchase of the former Bada Baoding Brewery. Under SMC, the brewery earned its ISO 9002 and ISO 9001 certifications in 1998 and 2001, respectively.
By Zinnia B. Dela Peña
The Philippine Star 01/19/2006
http://www.philstar.com/philstar/NEWS200601190704.htm
Food and beverage giant San Miguel Corp. (SMC) yesterday reported that its San Miguel Guangdong Brewery (SMGB) in South China registered sales revenue of $21.38 million last year, up 21 percent from 2004.
Sales volume rose 16 percent, mainly driven by SMGB’s intensified marketing tack intended to enhance its Dragon brand portfolio’s visibility in the region, considered as one of the fastest growing beer markets in China.
Last year, SMGB also developed new packaging for its brands including a new canned variant for its local flagship brand, Dragon Beer.
The Guangdong brewery, inaugurated by SMC in 1994 as San Miguel Shunde Brewery, also fortified its leadership in the economy segment of the beer market in South China with its introduction of Valor in 640 ml bottles in the city of Shunde.
SMGB also gained wider access into the premium beer market in South China through San Miguel Pale Pilsen and Platinum Dragon Beer which won medals for quality excellence in this year’s Monde Selection.
SMC said Dragon Beer won an award from the international quality rating institution.
San Miguel Baoding Brewery (SMBB), San Miguel’s corporate vehicle for its North china operations, registered revenues of $16.8 million in 2005 or an increase of 13 percent from the previous year on higher sales volume.
Sales volume likewise went up 22 percent in sales volume with Blue Star Beer being the major contributor.
Blue Star Beer brand accounts for 96 percent of the San Miguel beer sales revenues in Northern China.
Other brands contributing to SMC North China operations’ growth include San Miguel Pale Pilsen, San Mig Light and Valor which like Blue Star are perennial winners of gold medals of excellence in the international product quality competition, Monde Selection.
SMBB is located in the western part of the 309.3 square-km Baoding City (about half the size of Metro Manila) in Hebei province, which is in the middle of three other major densely-populated cities: Tianjin, Shijiazhuang and China’s capital, Beijing.
The North China SMC operations started in 1996 with San Miguel’s purchase of the former Bada Baoding Brewery. Under SMC, the brewery earned its ISO 9002 and ISO 9001 certifications in 1998 and 2001, respectively.
Index retreats 28.85 pts on across-the-board selling
Index retreats 28.85 pts on across-the-board selling
The Philippine Star 01/19/2006
http://www.philstar.com/philstar/NEWS200601190702.htm
Share prices closed 1.34 percent lower yesterday on across-the-board selling prompted by a fresh spike in oil prices and Wall Street’s losses overnight, dealers said.
Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor.
The composite index gave up 28.85 points to 2,125.45 after trading between 2,117.61 and 2,154.30. Turnover was 2.68 billion shares worth P2.34 billion, about of a third of which were sold in cross transactions.
The all-shares index fell 19.28 points to 999.76.
Losers led gainers 57 to 21, with 52 stocks unchanged.
Dealers said the escape from military prison overnight Tuesday of four officers on trial for a failed 2003 military mutiny also unnerved investors.
"We’ve moved alongside other markets in Asia, which have turned negative as they tracked Wall Street’s weakness overnight," said Mark Alan Canizares of Citiseconline.com.
US stocks slumped overnight Tuesday on a fresh spike in oil prices to their highest level since late September and after disappointing results from Intel and IBM.
Dealers also noted that many key local companies with large capitalizations have reached overly rich valuations following the market’s rally to a 10-month high last week, leaving them ripe for correction.
"Today’s pullback is more of a correction. The index needs to consolidate before testing the (recent high of) 2,172," said Gomer Tan of Regina Capital Development.
Tan said a renewed spike in oil prices to September levels has re-ignited worries about higher inflation and consequently lower consumer spending.
Philippine Long Distance Telephone led decliners, ending down P45 to P1,805. Rival Globe Telecom was top-traded, down P20 to P730.
Bank of the Philippine Islands fell P2 to P56.50 while Metropolitan Bank and Trust lost P1 to P32.
Ayala Corp. declined P10 to 327.50, while unit Ayala Land was steady at P10.25.
San Miguel A and B shares were both unchanged at P64 and P87.50 respectively.
Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor. – AFP
The Philippine Star 01/19/2006
http://www.philstar.com/philstar/NEWS200601190702.htm
Share prices closed 1.34 percent lower yesterday on across-the-board selling prompted by a fresh spike in oil prices and Wall Street’s losses overnight, dealers said.
Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor.
The composite index gave up 28.85 points to 2,125.45 after trading between 2,117.61 and 2,154.30. Turnover was 2.68 billion shares worth P2.34 billion, about of a third of which were sold in cross transactions.
The all-shares index fell 19.28 points to 999.76.
Losers led gainers 57 to 21, with 52 stocks unchanged.
Dealers said the escape from military prison overnight Tuesday of four officers on trial for a failed 2003 military mutiny also unnerved investors.
"We’ve moved alongside other markets in Asia, which have turned negative as they tracked Wall Street’s weakness overnight," said Mark Alan Canizares of Citiseconline.com.
US stocks slumped overnight Tuesday on a fresh spike in oil prices to their highest level since late September and after disappointing results from Intel and IBM.
Dealers also noted that many key local companies with large capitalizations have reached overly rich valuations following the market’s rally to a 10-month high last week, leaving them ripe for correction.
"Today’s pullback is more of a correction. The index needs to consolidate before testing the (recent high of) 2,172," said Gomer Tan of Regina Capital Development.
Tan said a renewed spike in oil prices to September levels has re-ignited worries about higher inflation and consequently lower consumer spending.
Philippine Long Distance Telephone led decliners, ending down P45 to P1,805. Rival Globe Telecom was top-traded, down P20 to P730.
Bank of the Philippine Islands fell P2 to P56.50 while Metropolitan Bank and Trust lost P1 to P32.
Ayala Corp. declined P10 to 327.50, while unit Ayala Land was steady at P10.25.
San Miguel A and B shares were both unchanged at P64 and P87.50 respectively.
Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor. – AFP
Wednesday, January 18, 2006
JFC buys out partner in Greenwich
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URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=18&file=7
JFC buys out partner in Greenwich
Posted: 2:14 AM Jan. 18, 2006
Elizabeth L. Sanchez
Inquirer
FAST FOOD GIANT JOLLIBEE FOODS CORP. said it had fully acquired Greenwich Pizza Corp. by buying out its partner in the quick-service pizza and pasta chain for P384 million.
In a statement sent to the Philippine Stock Exchange, Jollibee chair Tony Tan Caktiong said the move was in line with the group's strategy to acquire businesses or additional stakes in existing businesses for consolidation into its operations.
Jollibee bought the 20-percent stake of Green Foods Franchising Inc., raising the group's holdings in the fast food pizza chain to 100 percent.
"We have been very pleased with our partnership with Green Foods Franchising Inc. over the past 11 years, starting in 1994 when JFC acquired 80 percent of Greenwich Pizza Corp. This buyout, which was arrived at in terms satisfactory to both our partner and to JFC, will add sales and profit to and will facilitate in simplifying our operations," Tan Caktiong said in the statement.
In its financial report as of September, Jollibee said Greenwich's system-wide sales-a measure of all sales to consumers from both company-owned and franchised stores-grew 4.3 percent in the third quarter ending September. No figures were specified.
Jollibee chief finance officer Ysmael Baysa said Greenwich's total sales of P3.5 billion in 2004 contributed 10 percent to Jollibee's total system-wide sales for that year.
Also, Greenwich generated P2.7 billion in revenue and P131.9 million in net income in 2004.
As of Dec. 31, Greenwich runs a total of 239 stores, of which 128 are company-owned and 111 are under franchise agreements.
Tan Caktiong also said he was confident about the long-term prospect of the Greenwich brand.
"We have built a leading brand over these years. We are confident that this brand will continue to grow robustly in the future."
Baysa also said Jollibee yesterday paid Green Foods in cash.
Jollibee has been accumulating cash reserves for its expansion strategy.
Last October, Jollibee acquired full control of Red Ribbon Bakeshop for P1.8 billion.
In March 2004, it bought 85 percent of Chinese fast food Yonghe King for $11.5 million.
The Jollibee Group, the largest fast food chain in the country, operates a total of 1,429 stores in the country and in nine countries overseas.
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=18&file=7
JFC buys out partner in Greenwich
Posted: 2:14 AM Jan. 18, 2006
Elizabeth L. Sanchez
Inquirer
FAST FOOD GIANT JOLLIBEE FOODS CORP. said it had fully acquired Greenwich Pizza Corp. by buying out its partner in the quick-service pizza and pasta chain for P384 million.
In a statement sent to the Philippine Stock Exchange, Jollibee chair Tony Tan Caktiong said the move was in line with the group's strategy to acquire businesses or additional stakes in existing businesses for consolidation into its operations.
Jollibee bought the 20-percent stake of Green Foods Franchising Inc., raising the group's holdings in the fast food pizza chain to 100 percent.
"We have been very pleased with our partnership with Green Foods Franchising Inc. over the past 11 years, starting in 1994 when JFC acquired 80 percent of Greenwich Pizza Corp. This buyout, which was arrived at in terms satisfactory to both our partner and to JFC, will add sales and profit to and will facilitate in simplifying our operations," Tan Caktiong said in the statement.
In its financial report as of September, Jollibee said Greenwich's system-wide sales-a measure of all sales to consumers from both company-owned and franchised stores-grew 4.3 percent in the third quarter ending September. No figures were specified.
Jollibee chief finance officer Ysmael Baysa said Greenwich's total sales of P3.5 billion in 2004 contributed 10 percent to Jollibee's total system-wide sales for that year.
Also, Greenwich generated P2.7 billion in revenue and P131.9 million in net income in 2004.
As of Dec. 31, Greenwich runs a total of 239 stores, of which 128 are company-owned and 111 are under franchise agreements.
Tan Caktiong also said he was confident about the long-term prospect of the Greenwich brand.
"We have built a leading brand over these years. We are confident that this brand will continue to grow robustly in the future."
Baysa also said Jollibee yesterday paid Green Foods in cash.
Jollibee has been accumulating cash reserves for its expansion strategy.
Last October, Jollibee acquired full control of Red Ribbon Bakeshop for P1.8 billion.
In March 2004, it bought 85 percent of Chinese fast food Yonghe King for $11.5 million.
The Jollibee Group, the largest fast food chain in the country, operates a total of 1,429 stores in the country and in nine countries overseas.
copyright ©2006 INQ7money.net all rights reserved
Tuesday, January 17, 2006
Philippine future bleak, says Bear Stearns analyst
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=17&file=5
Philippine future bleak, says Bear Stearns analyst
Posted: 2:42 AM Jan. 17, 2006
Daxim L. Lucas
Inquirer
THE Philippines faces a "bleak" future despite recent gains in the financial markets because the government continues to shy away from meaningful structural reforms, an analyst at US investment bank Bear, Stearns & Co. said.
Many foreign investors remained wary of the country's prospects, said John Stuermer, whose analysis of the Philippine politico-economic situation dates back to 1986.
"The long-term future, in terms of raising employment and investments is very, very bleak," said at a forum of the Foreign Correspondents Association of the Philippines.
Bear Stearns is the investment bank that cheered on President Gloria Macapagal-Arroyo's drive to reform government finances last year, mainly through an expanded value-added tax law.
Stuermer acknowledged that he was responsible for making the controversial prediction in July 2005 that Arroyo would survive an impeachment complaint filed against her in Congress -- at least until January 2006.
"It's now January 2006," he said.
Stuermer is giving the President a 50- to 60-percent chance of remaining in office under the present system of government.
"GMA [Arroyo] is tougher politically than the opposition expected," he said. "The longer impeachment and Cha-cha [proposal for Charter change] go on, the more GMA's political support will recover."
Stuermer also said there was a 25- to 30-percent chance that the Philippines would shift to a parliamentary form of government.
He noted that there was little public support for the proposal, which he said was "mainly a creation of Manila's elite."
He said there was only a 15- to 20-percent chance that Arroyo would be impeached by the House of Representatives and convicted by the Senate.
"GMA's allies control the lower house and will undermine the impeachment process with procedural obstructionism," he said.
The House of Representatives rejected an impeachment complaint against Arroyo in September. The opposition bloc has said it will file another impeachment case against her this year.
Stuermer's bearish economic assessment came even as he acknowledged the peso was one of the best-performing currencies in the region.
He also took note of the resurgent stock market, the respectable pace of economic growth, and the "marginal" slowdown in the acceleration of consumer prices.
"The short-term view is positive," he said. "Everything is coming up roses."
But he said he was "not that optimistic" in general terms. "Yes, we'll have a five- to six-percent growth each year" in the domestic economy. "Everything is improving, but it has no impact on the standard of living for Filipinos."
Stuermer's assessment echoes that of Senator Manuel Roxas II, who pointed out that the benefits of a strengthening peso against the US dollar was not felt by the majority of Filipinos.
Stuermer described the economy as "very resilient," noting that the last time the gross domestic product contracted was in the wake of the Asian financial crisis in 1997.
Even then, he said, the contraction was due to the drought-inducing El Niño weather disruption, which cut agricultural output. "It is very hard to make the Philippine economy collapse in any given year."
The Bear Stearns analyst believed, however, that this resilience would be the country's undoing.
"The downside is this: There is now a downside for bad political behavior," he said. "The Philippines' political class has no incentive for good political behavior."
Because the bulk of economic growth still depends on agricultural output, which is largely immune from politics, political squabbles can only depress growth by so much.
Benjamin Diokno, a professor at the University of the Philippines' School of Economics, underscored this point in a presentation.
He showed that the Philippine economy historically has grown by an average of four percent annually despite various boom-and-bust cycles, mainly because of built-in safeguards like the country's dependence on agriculture.
This means there is "little incentive for meaningful structural reform that will attract real investments," he said.
He said the last round of genuine structural reforms in the Philippines came in 1986 with the toppling of the Ferdinand Marcos dictatorship.
"Now, the only 'out' is to send your mother abroad to work as a maid," he said. "This is having negative social implications."
Diokno, who served as budget secretary of former president Joseph Estrada, predicted that the economy would grow by 4.6 percent this year, compared with the government's growth target of 6.3-7.4 percent.
He said the economy continued to be threatened by the possibility of high interest rates, a potential surge in international crude oil prices to $70 per barrel, a decline in income from electronics exports, and political instability. With INQ7.net
Copyright 2005 Inquirer News Service, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=17&file=5
Philippine future bleak, says Bear Stearns analyst
Posted: 2:42 AM Jan. 17, 2006
Daxim L. Lucas
Inquirer
THE Philippines faces a "bleak" future despite recent gains in the financial markets because the government continues to shy away from meaningful structural reforms, an analyst at US investment bank Bear, Stearns & Co. said.
Many foreign investors remained wary of the country's prospects, said John Stuermer, whose analysis of the Philippine politico-economic situation dates back to 1986.
"The long-term future, in terms of raising employment and investments is very, very bleak," said at a forum of the Foreign Correspondents Association of the Philippines.
Bear Stearns is the investment bank that cheered on President Gloria Macapagal-Arroyo's drive to reform government finances last year, mainly through an expanded value-added tax law.
Stuermer acknowledged that he was responsible for making the controversial prediction in July 2005 that Arroyo would survive an impeachment complaint filed against her in Congress -- at least until January 2006.
"It's now January 2006," he said.
Stuermer is giving the President a 50- to 60-percent chance of remaining in office under the present system of government.
"GMA [Arroyo] is tougher politically than the opposition expected," he said. "The longer impeachment and Cha-cha [proposal for Charter change] go on, the more GMA's political support will recover."
Stuermer also said there was a 25- to 30-percent chance that the Philippines would shift to a parliamentary form of government.
He noted that there was little public support for the proposal, which he said was "mainly a creation of Manila's elite."
He said there was only a 15- to 20-percent chance that Arroyo would be impeached by the House of Representatives and convicted by the Senate.
"GMA's allies control the lower house and will undermine the impeachment process with procedural obstructionism," he said.
The House of Representatives rejected an impeachment complaint against Arroyo in September. The opposition bloc has said it will file another impeachment case against her this year.
Stuermer's bearish economic assessment came even as he acknowledged the peso was one of the best-performing currencies in the region.
He also took note of the resurgent stock market, the respectable pace of economic growth, and the "marginal" slowdown in the acceleration of consumer prices.
"The short-term view is positive," he said. "Everything is coming up roses."
But he said he was "not that optimistic" in general terms. "Yes, we'll have a five- to six-percent growth each year" in the domestic economy. "Everything is improving, but it has no impact on the standard of living for Filipinos."
Stuermer's assessment echoes that of Senator Manuel Roxas II, who pointed out that the benefits of a strengthening peso against the US dollar was not felt by the majority of Filipinos.
Stuermer described the economy as "very resilient," noting that the last time the gross domestic product contracted was in the wake of the Asian financial crisis in 1997.
Even then, he said, the contraction was due to the drought-inducing El Niño weather disruption, which cut agricultural output. "It is very hard to make the Philippine economy collapse in any given year."
The Bear Stearns analyst believed, however, that this resilience would be the country's undoing.
"The downside is this: There is now a downside for bad political behavior," he said. "The Philippines' political class has no incentive for good political behavior."
Because the bulk of economic growth still depends on agricultural output, which is largely immune from politics, political squabbles can only depress growth by so much.
Benjamin Diokno, a professor at the University of the Philippines' School of Economics, underscored this point in a presentation.
He showed that the Philippine economy historically has grown by an average of four percent annually despite various boom-and-bust cycles, mainly because of built-in safeguards like the country's dependence on agriculture.
This means there is "little incentive for meaningful structural reform that will attract real investments," he said.
He said the last round of genuine structural reforms in the Philippines came in 1986 with the toppling of the Ferdinand Marcos dictatorship.
"Now, the only 'out' is to send your mother abroad to work as a maid," he said. "This is having negative social implications."
Diokno, who served as budget secretary of former president Joseph Estrada, predicted that the economy would grow by 4.6 percent this year, compared with the government's growth target of 6.3-7.4 percent.
He said the economy continued to be threatened by the possibility of high interest rates, a potential surge in international crude oil prices to $70 per barrel, a decline in income from electronics exports, and political instability. With INQ7.net
Copyright 2005 Inquirer News Service, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
Stocks seen to rise
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=16&file=2
Stocks seen to rise
Posted: 11:20 PM Jan. 15, 2006
Elizabeth L. Sanchez
Inquirer
(Published on Page B1 of the January 16, 2006 issue of the Philippine Daily Inquirer)
STOCKS continued to rally last week, touching a 10-month high, on easing fiscal concerns and lower interest rates, analysts said.
Grace Cerdenia of online brokerage 2TradeAsia.com said the key catalyst that has been aiding sentiment was the government's fiscal-balancing story and the resulting stable interest rate outlook.
She said trends from the Bureau of Treasury's auctions have supported this thought, after the Treasury rejected high bids for the 90-day tenor last week.
"Also, local monetary authorities maintained benchmark interest rates steady, driven by stable trend expectation in consumer prices. While the peso's strength has partly aided the picture, stabilization within P52.40 to P52.70 may ensue, unless significant dollar-based investments flow into key sectors,"Cerdenia wrote in her weekly report.
Week-on-week, the benchmark index rose 14 points or 0.6 percent to 2,148.27.
AB Capital Securities wrote in a weekly report that the index was on the verge of trying to break the 2,172 resistance mark before political scandals again erupted.
"This should be a good indication that investors are slowly discounting the political distractions that occurred last year, and giving more emphasis on economic and financial concerns," AB Capital said.
News of mergers also bolstered shares of Banco de Oro, which touched an all time high of P38 a share. BDO has offered to merge with third largest Equitable PCI Bank, which also hit a 5-year high.
But AB Capital warned that a thorn in the market's side was the risk of higher oil prices.
"In fact, oil players are contemplating to raise pump prices anew as crude oil prices reached a 3-month high of $64.80 (last Friday). Since the Bangko Sentral's decision to raise rates last October, crude oil prices jumped 6 percent on concerns of winter temperatures in the US Northeast (largest heating oil market), declining crude stocks (build-up offset by higher projected 2.9 million barrels drawdown last week), and mild tensions in the Middle East," AB Capital wrote.
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=16&file=2
Stocks seen to rise
Posted: 11:20 PM Jan. 15, 2006
Elizabeth L. Sanchez
Inquirer
(Published on Page B1 of the January 16, 2006 issue of the Philippine Daily Inquirer)
STOCKS continued to rally last week, touching a 10-month high, on easing fiscal concerns and lower interest rates, analysts said.
Grace Cerdenia of online brokerage 2TradeAsia.com said the key catalyst that has been aiding sentiment was the government's fiscal-balancing story and the resulting stable interest rate outlook.
She said trends from the Bureau of Treasury's auctions have supported this thought, after the Treasury rejected high bids for the 90-day tenor last week.
"Also, local monetary authorities maintained benchmark interest rates steady, driven by stable trend expectation in consumer prices. While the peso's strength has partly aided the picture, stabilization within P52.40 to P52.70 may ensue, unless significant dollar-based investments flow into key sectors,"Cerdenia wrote in her weekly report.
Week-on-week, the benchmark index rose 14 points or 0.6 percent to 2,148.27.
AB Capital Securities wrote in a weekly report that the index was on the verge of trying to break the 2,172 resistance mark before political scandals again erupted.
"This should be a good indication that investors are slowly discounting the political distractions that occurred last year, and giving more emphasis on economic and financial concerns," AB Capital said.
News of mergers also bolstered shares of Banco de Oro, which touched an all time high of P38 a share. BDO has offered to merge with third largest Equitable PCI Bank, which also hit a 5-year high.
But AB Capital warned that a thorn in the market's side was the risk of higher oil prices.
"In fact, oil players are contemplating to raise pump prices anew as crude oil prices reached a 3-month high of $64.80 (last Friday). Since the Bangko Sentral's decision to raise rates last October, crude oil prices jumped 6 percent on concerns of winter temperatures in the US Northeast (largest heating oil market), declining crude stocks (build-up offset by higher projected 2.9 million barrels drawdown last week), and mild tensions in the Middle East," AB Capital wrote.
copyright ©2006 INQ7money.net all rights reserved
Saturday, January 14, 2006
Banco de Oro folds in credit card firm
Banco de Oro folds in credit card firm
Sat Jan 14,2006
Manila Bulettin
http://www.mb.com.ph/BSNS2006011453771.html#
Banco de Oro Universal Bank (BDO) owned and controlled by retail magnate, Henry Sy, Sr., is dissolving its credit card subsidiary, BDO Card Corporation (BDOCC), a move that would increase the bank’s capital base.
BDO management, in a disclosure to the Philippine Stock Exchange, said the "dissolution" of BDOCC will be undertaken by "shortening its corporate life," through the amendment of its articles of incorporation.
Instead of a separate entity, BDOCC will envisioned, if its dissolution is approved by the regulators, to be just be a part of the overall operations its mother company, BDO.
"Recognizing the potential for growth and profitability of credit card business in the Philippines, BDO has decided to fold in and directly operate its credit card business as a department of the bank. The consolidation of the credit card business with the moth! er bank will lead to enhanced efficiency, substantial synergies and cost savings," BDO said.
Analysts believed that the collapse of BDOCC into a mere department is part of the overall strategy of the Sy family to beef-up the resources and capital base of BDO, in step with its plan to improve the bank’s industry standing for being just a mid-sized universal bank.
This is the tack that will be taken by most banks with separate or whollyowned credit card firm to improve its resources and capital in the wake of their compliance to the international accounting ! standard of financial reporting, explained market analysts.
The resulting dissolution will transfer all the BDOCC assets as well as its liabilities to BDO. "BDO assures its clientele and business partners of a seamless transition of its credit card operations from BDOCC to BDO," said the management.
"The planned transfer of business and the clientele of BDOCC to its mother bank, BDO is in line with the strategic thrust of the BDO Group towards expansion in the credit card business," the bank added.
BDOCC operates BDO credit card, SM credit card and has been licensed to issue American Express Card to a select group of clients.
Increasing BDO’s capital base is a necessary step following the bank’s to merge with Equitable-PCI Bank through a share swap arrangement of 1.6 to 1 ratio. BDO has given EPCI Bank directors until end of the month to decide.
Sat Jan 14,2006
Manila Bulettin
http://www.mb.com.ph/BSNS2006011453771.html#
Banco de Oro Universal Bank (BDO) owned and controlled by retail magnate, Henry Sy, Sr., is dissolving its credit card subsidiary, BDO Card Corporation (BDOCC), a move that would increase the bank’s capital base.
BDO management, in a disclosure to the Philippine Stock Exchange, said the "dissolution" of BDOCC will be undertaken by "shortening its corporate life," through the amendment of its articles of incorporation.
Instead of a separate entity, BDOCC will envisioned, if its dissolution is approved by the regulators, to be just be a part of the overall operations its mother company, BDO.
"Recognizing the potential for growth and profitability of credit card business in the Philippines, BDO has decided to fold in and directly operate its credit card business as a department of the bank. The consolidation of the credit card business with the moth! er bank will lead to enhanced efficiency, substantial synergies and cost savings," BDO said.
Analysts believed that the collapse of BDOCC into a mere department is part of the overall strategy of the Sy family to beef-up the resources and capital base of BDO, in step with its plan to improve the bank’s industry standing for being just a mid-sized universal bank.
This is the tack that will be taken by most banks with separate or whollyowned credit card firm to improve its resources and capital in the wake of their compliance to the international accounting ! standard of financial reporting, explained market analysts.
The resulting dissolution will transfer all the BDOCC assets as well as its liabilities to BDO. "BDO assures its clientele and business partners of a seamless transition of its credit card operations from BDOCC to BDO," said the management.
"The planned transfer of business and the clientele of BDOCC to its mother bank, BDO is in line with the strategic thrust of the BDO Group towards expansion in the credit card business," the bank added.
BDOCC operates BDO credit card, SM credit card and has been licensed to issue American Express Card to a select group of clients.
Increasing BDO’s capital base is a necessary step following the bank’s to merge with Equitable-PCI Bank through a share swap arrangement of 1.6 to 1 ratio. BDO has given EPCI Bank directors until end of the month to decide.
Market continues to drop on profit-taking, Wall St losses
Market continues to drop on profit-taking, Wall St losses
The Philippine Star 01/14/2006
http://www.philstar.com/philstar/NEWS200601140703.htm
Philippine share prices closed 0.48 percent lower yesterday as investors took profits following losses overnight on Wall Street, dealers said.
They said the market looks overbought following its recent rise to a 10-month high, leaving stocks susceptible to profit-taking.
The composite index fell 10.38 points to 2,148.27 after trading between 2,142.26 and 2,159.12. Volume was 947.12 million shares worth P1.039 billion ($19.8 million).
Losers just led gains 40 to 39, with 43 stocks unchanged.
The peso was at 52.455 to the dollar as of mid-day.
"We’re seeing some pockets of profit-taking which is only normal since the market has been trading higher since the start of the week," said Oliver Plana of Asiasec Equities.
"This is more of a technical correction than a consolidation phase. The market continues to move higher despite some pauses along the way. It’s not locked in a range," said Mark Alan Canizares of Citiseconline.com.
Top-traded Philippine Long Distance Telephone ended steady at P1,845.
Globe Telecom fell P15 to P750 while parent Ayala Corp. shed P5 to 335.
San Miguel saw both its A and B shares fall 50 centavos to P64 and 88 pesos respectively.
Banco de Oro declined on speculation its offer to merge with Equitable PCI Bank will be scuttled after a government fund said it received a higher offer for its Equitable shares.
SM Prime Holdings Inc. rose after its parent company, SM Investments Corp, said it will build a convention center and an office tower next to its unit’s Mall of Asia in Manila, which could attract more customers.
Banco de Oro, a lender owned by the nation’s richest tycoon, Henry Sy, fell 50 centavos, or 1.4 percent, to P35.50, after jumping to a record P37 on Jan. 10. Government Service Insurance System President Winston Garcia said the fund has received an offer for its 12.2-percent stake in Equitable, which last week received a merger offer from Banco de Oro through a share swap.
Equitable PCI Bank, the nation’s third-largest lender by assets, fell P2, or 3.1 percent, to P63, snapping a three-day 5.7-percent climb that took it to its highest since Nov. 22, 2000.
Shares worth P1.04 billion were traded, 3.4 percent less than the six-month daily average.
Separately, SM Prime, the nation’s largest shopping mall operator, rose 10 centavos, or 1.3 percent, to P7.80, paring this week’s loss to 2.5 percent. Its parent, SM Investments, said yesterday the P2.4-billion project will be completed by mid-2007. SM Investments was unchanged at P240. – AP
The Philippine Star 01/14/2006
http://www.philstar.com/philstar/NEWS200601140703.htm
Philippine share prices closed 0.48 percent lower yesterday as investors took profits following losses overnight on Wall Street, dealers said.
They said the market looks overbought following its recent rise to a 10-month high, leaving stocks susceptible to profit-taking.
The composite index fell 10.38 points to 2,148.27 after trading between 2,142.26 and 2,159.12. Volume was 947.12 million shares worth P1.039 billion ($19.8 million).
Losers just led gains 40 to 39, with 43 stocks unchanged.
The peso was at 52.455 to the dollar as of mid-day.
"We’re seeing some pockets of profit-taking which is only normal since the market has been trading higher since the start of the week," said Oliver Plana of Asiasec Equities.
"This is more of a technical correction than a consolidation phase. The market continues to move higher despite some pauses along the way. It’s not locked in a range," said Mark Alan Canizares of Citiseconline.com.
Top-traded Philippine Long Distance Telephone ended steady at P1,845.
Globe Telecom fell P15 to P750 while parent Ayala Corp. shed P5 to 335.
San Miguel saw both its A and B shares fall 50 centavos to P64 and 88 pesos respectively.
Banco de Oro declined on speculation its offer to merge with Equitable PCI Bank will be scuttled after a government fund said it received a higher offer for its Equitable shares.
SM Prime Holdings Inc. rose after its parent company, SM Investments Corp, said it will build a convention center and an office tower next to its unit’s Mall of Asia in Manila, which could attract more customers.
Banco de Oro, a lender owned by the nation’s richest tycoon, Henry Sy, fell 50 centavos, or 1.4 percent, to P35.50, after jumping to a record P37 on Jan. 10. Government Service Insurance System President Winston Garcia said the fund has received an offer for its 12.2-percent stake in Equitable, which last week received a merger offer from Banco de Oro through a share swap.
Equitable PCI Bank, the nation’s third-largest lender by assets, fell P2, or 3.1 percent, to P63, snapping a three-day 5.7-percent climb that took it to its highest since Nov. 22, 2000.
Shares worth P1.04 billion were traded, 3.4 percent less than the six-month daily average.
Separately, SM Prime, the nation’s largest shopping mall operator, rose 10 centavos, or 1.3 percent, to P7.80, paring this week’s loss to 2.5 percent. Its parent, SM Investments, said yesterday the P2.4-billion project will be completed by mid-2007. SM Investments was unchanged at P240. – AP
RP outsourcing industry optimistic about 2006 prospects
RP outsourcing industry optimistic about 2006 prospects
Jan 13, 2006
Updated 02:55pm (Mla time)
Erwin Lemuel Oliva eoliva@inq7.net
INQ7.net
http://news.inq7.net/express/html_output/20060113-62824.xml.html
REPRESENTATIVES from different sectors of the Philippine outsourcing industry remain optimistic about its growth prospects in 2006 despite serious challenges. One of them is finding more quality skills to man the booming business process outsourcing (BPO) industry. The other is steep competition from other countries like India.
In a joint forecast by the Business Process Association of the Philippines (BPAP), Board of Investments (BOI), and the Commission on Information and Communications Technology, the Philippine outsourcing industry is expected to generate 103,000 new jobs in 2006, a 44 percent increase from 2005. The same forecast showed about 81,000 new jobs created in 2005, a 53 percent growth from 2004 figures.
Based on these growth rates, a slowdown in the generation of new jobs year-on-year is foreseen. The forecast also noted that the outsourcing industry is expected to generate 3.7 billion dollars in revenues this year, or a 52 percent growth over 2005. "The prospects are still bright for the Philippine outsourcing industry," according to Celeste Ilagan, executive director of the BOI's international promotions.
Information technology-related projects registered with the BOI have increased in 2005, and are projected to increase by over 50 percent in 2006, she noted, adding "but we will need to develop more niches in this booming outsourcing industry." Dan Reyes, president of the BPAP, is also bullish about the prospects in 2006, but admitted that finding enough quality skills to man expanding operations in the Philippines is a challenge.
Meanwhile Rafy David, president of the Contact Center Association of the Philippines, believes the call center or customer care industry will account for majority of new jobs in 2006. The association, which represents companies doing outsourced call center work for foreign clients, projects 70 percent growth in 2006 in terms of revenues.
"We also want to stress that for every one call center job created, two support service jobs are created," David added, noting the boom in real-estate, convenience stores and restaurants in areas where call centers are located. Besides call centers, the outsourced back-office industry is also expected to generate more jobs in the country, observes Josephine Gonzales, senior corporate liaison officer of SPI Technologies.
There are similar expectations of growth in the Philippine animation and software development industry for 2006. Marilyn Montano, president of the Animation Council of the Philippines , said the Philippine animation industry hopes to sustain a 20 percent growth in total revenues over the next five years. This local industry is currently a 40 million dollar business, with the global animation outsourcing industry valued at 72 billion dollars, she added. BPAP-BOI-CICT projects 7,000 new jobs generated in the animation industry in 2006. About 4,500 jobs were generated from outsourced animation work to the Philippines in 2005.
And then there's Philippine software development, currently focused on a program dubbed Fly-High 2010, which hopes to generate more jobs for this sector, says Mon Villar, executive director of the Philippine Software Industry Association. Part of the software development industry that deals with projects for export is projected to generate 20,000 jobs in 2006; the part that deals with the domestic market is projected to employ 31,000 people.
A Canada-based market research firm has however predicted that the outsourcing will lose its luster in 2006, as organizations decide to take back certain IT operations that have been outsourced to third-party providers. "As number of multi-year deals are up for renewal globally, outsourcing will lose its luster as organizations take back certain IT functions, selectively outsource, or setup their own remote operations," XMG said in its 2006 prediction report found at www.xmg-global.com. It added that with "heightened awareness of the capabilities of Asia Pacific countries and the increasing internal tolerance for risks in operating offshore," several organizations that have outsourced multi-year contracts with an offshore provider will eventually decide to setup their own remote operations offshore to support internal business process and IT requirements.
Meanwhile, in partnership with the Department of Trade Industry, the Philippine outsourcing industry is scheduled to hold an "e-Services Philippines" conference and exhibition at EDSA Shangri-La Manila on February 16 to 17, 2006. Organized by the Center for International Trade Expositions and Missions, e-Services Philippines will invite international and local speakers to discuss the prospects of the outsourcing industry for the year. Both conference and exhibition will also feature global industry experts on emerging issues affecting the industry. Avinash Vashistha, founder and managing director of outsourcing consultancy neoIT and author of "Offshore Nation," has been invited as a conference speaker. Nigel Roxburgh, founding director of UK's National Outsourcing Association, has also been invited to discuss prospects in the UK market.
©2006 www.inq7.net all rights reserved
Jan 13, 2006
Updated 02:55pm (Mla time)
Erwin Lemuel Oliva eoliva@inq7.net
INQ7.net
http://news.inq7.net/express/html_output/20060113-62824.xml.html
REPRESENTATIVES from different sectors of the Philippine outsourcing industry remain optimistic about its growth prospects in 2006 despite serious challenges. One of them is finding more quality skills to man the booming business process outsourcing (BPO) industry. The other is steep competition from other countries like India.
In a joint forecast by the Business Process Association of the Philippines (BPAP), Board of Investments (BOI), and the Commission on Information and Communications Technology, the Philippine outsourcing industry is expected to generate 103,000 new jobs in 2006, a 44 percent increase from 2005. The same forecast showed about 81,000 new jobs created in 2005, a 53 percent growth from 2004 figures.
Based on these growth rates, a slowdown in the generation of new jobs year-on-year is foreseen. The forecast also noted that the outsourcing industry is expected to generate 3.7 billion dollars in revenues this year, or a 52 percent growth over 2005. "The prospects are still bright for the Philippine outsourcing industry," according to Celeste Ilagan, executive director of the BOI's international promotions.
Information technology-related projects registered with the BOI have increased in 2005, and are projected to increase by over 50 percent in 2006, she noted, adding "but we will need to develop more niches in this booming outsourcing industry." Dan Reyes, president of the BPAP, is also bullish about the prospects in 2006, but admitted that finding enough quality skills to man expanding operations in the Philippines is a challenge.
Meanwhile Rafy David, president of the Contact Center Association of the Philippines, believes the call center or customer care industry will account for majority of new jobs in 2006. The association, which represents companies doing outsourced call center work for foreign clients, projects 70 percent growth in 2006 in terms of revenues.
"We also want to stress that for every one call center job created, two support service jobs are created," David added, noting the boom in real-estate, convenience stores and restaurants in areas where call centers are located. Besides call centers, the outsourced back-office industry is also expected to generate more jobs in the country, observes Josephine Gonzales, senior corporate liaison officer of SPI Technologies.
There are similar expectations of growth in the Philippine animation and software development industry for 2006. Marilyn Montano, president of the Animation Council of the Philippines , said the Philippine animation industry hopes to sustain a 20 percent growth in total revenues over the next five years. This local industry is currently a 40 million dollar business, with the global animation outsourcing industry valued at 72 billion dollars, she added. BPAP-BOI-CICT projects 7,000 new jobs generated in the animation industry in 2006. About 4,500 jobs were generated from outsourced animation work to the Philippines in 2005.
And then there's Philippine software development, currently focused on a program dubbed Fly-High 2010, which hopes to generate more jobs for this sector, says Mon Villar, executive director of the Philippine Software Industry Association. Part of the software development industry that deals with projects for export is projected to generate 20,000 jobs in 2006; the part that deals with the domestic market is projected to employ 31,000 people.
A Canada-based market research firm has however predicted that the outsourcing will lose its luster in 2006, as organizations decide to take back certain IT operations that have been outsourced to third-party providers. "As number of multi-year deals are up for renewal globally, outsourcing will lose its luster as organizations take back certain IT functions, selectively outsource, or setup their own remote operations," XMG said in its 2006 prediction report found at www.xmg-global.com. It added that with "heightened awareness of the capabilities of Asia Pacific countries and the increasing internal tolerance for risks in operating offshore," several organizations that have outsourced multi-year contracts with an offshore provider will eventually decide to setup their own remote operations offshore to support internal business process and IT requirements.
Meanwhile, in partnership with the Department of Trade Industry, the Philippine outsourcing industry is scheduled to hold an "e-Services Philippines" conference and exhibition at EDSA Shangri-La Manila on February 16 to 17, 2006. Organized by the Center for International Trade Expositions and Missions, e-Services Philippines will invite international and local speakers to discuss the prospects of the outsourcing industry for the year. Both conference and exhibition will also feature global industry experts on emerging issues affecting the industry. Avinash Vashistha, founder and managing director of outsourcing consultancy neoIT and author of "Offshore Nation," has been invited as a conference speaker. Nigel Roxburgh, founding director of UK's National Outsourcing Association, has also been invited to discuss prospects in the UK market.
©2006 www.inq7.net all rights reserved
10 companies expected to list shares in '06, says PSE
this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=14&file=4
10 companies expected to list shares in '06, says PSE
Posted: 3:20 AM Jan. 14, 2006
Inquirer
ABOUT 10 companies in different sectors are expected to offer shares to the public this year, Philippine Stock Exchange (PSE) president Francis Lim said.
Lim declined to identify all the companies but said that First Generation Corp., a power producer of the Lopez group, would make its initial public offering (IPO) on Feb. 10 and food manufacturer Universal Robina Corp. of the Gokongwei group would list additional shares.
First Gen is expected to generate about P11.2 billion from its IPO.
"Money is now being channeled through private fund managers for investment abroad," Lim said. "The challenge now for the PSE is to work harder so that the money invested abroad will find its way back to the Philippines." He added that mining company Carmen Copper would also list its shares on the PSE, and a small export company that he did not identify was hoping to raise P250-P300 million from an IPO in the second quarter of the year.
Lim said he also expected broadcast company GMA Network Inc. and oil refiner Pilipinas Shell Petroleum Corp. to make their public stock offerings this year.
He said he was also urging pharmaceutical company United Laboratories Inc., bookstore chain National Bookstore Inc. and health and beauty products distributor Splash Corp. to proceed with their IPO plans.
"The economic indicators are good," Lim said. "The peso has appreciated by four percent against the US dollar. The gross international reserves are at a record high and the fiscal deficit is being contained. These factors will encourage companies to list their shares."
He said Splash had indicated its interest in going public, and said he hoped this would happen this year.
The PSE recorded a January-September operating revenue of P223 million, up 121 percent year-on-year, with increased listing fees on IPOs of SM Investments Corp. and Manila Water Co. Inc. With INQ7.net
Copyright 2005 Inquirer News Service, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=01&dd=14&file=4
10 companies expected to list shares in '06, says PSE
Posted: 3:20 AM Jan. 14, 2006
Inquirer
ABOUT 10 companies in different sectors are expected to offer shares to the public this year, Philippine Stock Exchange (PSE) president Francis Lim said.
Lim declined to identify all the companies but said that First Generation Corp., a power producer of the Lopez group, would make its initial public offering (IPO) on Feb. 10 and food manufacturer Universal Robina Corp. of the Gokongwei group would list additional shares.
First Gen is expected to generate about P11.2 billion from its IPO.
"Money is now being channeled through private fund managers for investment abroad," Lim said. "The challenge now for the PSE is to work harder so that the money invested abroad will find its way back to the Philippines." He added that mining company Carmen Copper would also list its shares on the PSE, and a small export company that he did not identify was hoping to raise P250-P300 million from an IPO in the second quarter of the year.
Lim said he also expected broadcast company GMA Network Inc. and oil refiner Pilipinas Shell Petroleum Corp. to make their public stock offerings this year.
He said he was also urging pharmaceutical company United Laboratories Inc., bookstore chain National Bookstore Inc. and health and beauty products distributor Splash Corp. to proceed with their IPO plans.
"The economic indicators are good," Lim said. "The peso has appreciated by four percent against the US dollar. The gross international reserves are at a record high and the fiscal deficit is being contained. These factors will encourage companies to list their shares."
He said Splash had indicated its interest in going public, and said he hoped this would happen this year.
The PSE recorded a January-September operating revenue of P223 million, up 121 percent year-on-year, with increased listing fees on IPOs of SM Investments Corp. and Manila Water Co. Inc. With INQ7.net
Copyright 2005 Inquirer News Service, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
copyright ©2006 INQ7money.net all rights reserved
Friday, January 13, 2006
Franchise Times: No entrepreneur is an island, Part 2
Saturday, January 14, 2006
Manila Times
FRANCHISE TIMES
By Rommel T. Juan
No entrepreneur is an island, Part 2
As mentioned last week, a successful business is often surrounded with brilliant people, beginning with mentors. Aside from mentors, we should also seek the help of pros and pick the brains of colleagues. To continue:
2. Get consultants
I have never hesitated to hire consultants to help me with Binalot. I recognize that I don’t always possess the knowledge for many disciplines. So when we decided to franchise the Binalot business model, we didn’t think twice about getting the services of GMB Franchise consultancy. We found an effective partner in developing our franchise as well as generous and comforting friends in Mr. and Mrs. Butz Bartolome, the force behind GMB. The decision proved fruitful as franchising became our main growth strategy in the recent years.
I also sought outside help when it came to financial and accounting matters, which was my particular waterloo. My ME classmate Mr. MJ Madrid put me on the right track when it came to accounting while my former Drill Master at AIM Mr. Dennis Ang is helping me plot the financial direction of the company.
Consultants help you focus on what is necessary, thus helping you reach objectives faster and more efficiently than when you do it yourself. This is especially true if the particular area is not your field of expertise.
3. Network
I cannot even hope to enumerate all the benefits I have gotten from networking. I’ve learned many lessons from small conversations, from long discussions, while networking with peers.
The first association I seriously joined was the Association of Filipino Franchisers. Here, I met members who were much like me and whose businesses were just like mine. We were all Filipino owned, homegrown SMEs that were (or was planning to) franchise our business concepts.
Through AFFI meetings and activities I learned so many things from co-members’ experiences and experiments with their own enterprise. I would always catch myself thinking: “Hey, I can try that with Binalot!” whenever a good idea was being discussed. People at AFFI also pushed me to greater heights by giving me more responsibilities in the association, sharing their suppliers with me, keeping me abreast with current trends and even in nominating me for as one of the Top 10 Entrepreneurs for 2005.
Another effective network I stumbled into was my AIM Master of Entrepreneurship batch in back in 2003. I met the most diverse, passionate and exciting business people in my life. Our batch consisted of 90 colorful individuals spread across a vast number of industries and disciplines.
In this one venue I was able to discover virtually every kind of supplier I would ever need in my businesses.
We were all business people who wanted to learn more in order to improve our existing businesses.
I learned just as much through discussions with my ME classmates as I did from our classroom lectures.
After I graduated I ended up setting up businesses with some of my classmates and I still sometimes seek the advice of some of them before I decide on something major.
Watch out next week for Part 3: Employees.
--------------------------------------------------------------------------------
The Franchise Times is a public service project of the Association of Filipino Franchisers Inc. (AFFI) and The Manila Times. This week’s contributor, Mr. Rommel Juan is AFFI PRO and president of Binalot Fiesta Foods Inc. For feedback, please email editor@filfranchisers.com. For more info on AFFI, log on to www.filfranchisers.com, call the AFFI Secretariat at 873-8144, or text AFFI to Smart 326.
Manila Times
FRANCHISE TIMES
By Rommel T. Juan
No entrepreneur is an island, Part 2
As mentioned last week, a successful business is often surrounded with brilliant people, beginning with mentors. Aside from mentors, we should also seek the help of pros and pick the brains of colleagues. To continue:
2. Get consultants
I have never hesitated to hire consultants to help me with Binalot. I recognize that I don’t always possess the knowledge for many disciplines. So when we decided to franchise the Binalot business model, we didn’t think twice about getting the services of GMB Franchise consultancy. We found an effective partner in developing our franchise as well as generous and comforting friends in Mr. and Mrs. Butz Bartolome, the force behind GMB. The decision proved fruitful as franchising became our main growth strategy in the recent years.
I also sought outside help when it came to financial and accounting matters, which was my particular waterloo. My ME classmate Mr. MJ Madrid put me on the right track when it came to accounting while my former Drill Master at AIM Mr. Dennis Ang is helping me plot the financial direction of the company.
Consultants help you focus on what is necessary, thus helping you reach objectives faster and more efficiently than when you do it yourself. This is especially true if the particular area is not your field of expertise.
3. Network
I cannot even hope to enumerate all the benefits I have gotten from networking. I’ve learned many lessons from small conversations, from long discussions, while networking with peers.
The first association I seriously joined was the Association of Filipino Franchisers. Here, I met members who were much like me and whose businesses were just like mine. We were all Filipino owned, homegrown SMEs that were (or was planning to) franchise our business concepts.
Through AFFI meetings and activities I learned so many things from co-members’ experiences and experiments with their own enterprise. I would always catch myself thinking: “Hey, I can try that with Binalot!” whenever a good idea was being discussed. People at AFFI also pushed me to greater heights by giving me more responsibilities in the association, sharing their suppliers with me, keeping me abreast with current trends and even in nominating me for as one of the Top 10 Entrepreneurs for 2005.
Another effective network I stumbled into was my AIM Master of Entrepreneurship batch in back in 2003. I met the most diverse, passionate and exciting business people in my life. Our batch consisted of 90 colorful individuals spread across a vast number of industries and disciplines.
In this one venue I was able to discover virtually every kind of supplier I would ever need in my businesses.
We were all business people who wanted to learn more in order to improve our existing businesses.
I learned just as much through discussions with my ME classmates as I did from our classroom lectures.
After I graduated I ended up setting up businesses with some of my classmates and I still sometimes seek the advice of some of them before I decide on something major.
Watch out next week for Part 3: Employees.
--------------------------------------------------------------------------------
The Franchise Times is a public service project of the Association of Filipino Franchisers Inc. (AFFI) and The Manila Times. This week’s contributor, Mr. Rommel Juan is AFFI PRO and president of Binalot Fiesta Foods Inc. For feedback, please email editor@filfranchisers.com. For more info on AFFI, log on to www.filfranchisers.com, call the AFFI Secretariat at 873-8144, or text AFFI to Smart 326.
Binderless particle board made from 100% coconut husk
Binderless particle board made from 100% coconut husk
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353751.html#
After the successful commercialization of virgin coconut oil (VCO) last year, scientists had discovered a new product out of coconut waste materials, particularly from coconut husks, which can now be used in the local construction industry as particle boards.
The Department of Science and Technology’s Forest Products Research and Development Institute (DOST-FPRDI), a DoST agency based in Los Baños, Laguna, has developed a binderless particle board made of 100 percent coconut husks.
In a phone interview with the Manila Bulletin, Dr. Dwight Eusebio, FPRDI project leader for the Pilot Scale Production of Binderless Coco Coir Boards, said that the project was aimed at establishing the conditions for making high performance, environmentally-safe building and packaging materials from coco coir without the need to use expensive and hazardous synthetic binders like formaldehyde.
He added that coco coir contains a lot of lignin which converts into a natural binder once it is hotpressed.
For this year, however, the agency is planning to "determine the durability of the coco coir binder boards when it becomes exposed to the environment," Eusebio said.
Eusebio added this will determine if the particle boards made of 100 percent coconut husks would be able to resist deterioration during extreme heat and heavy rains.
"Because we expect questions like this to come up (from investors) someday," he said.
A panel product produced through pressing under heat and pressure, Eusebio said that coco coir binderless boards are also being promoted by the agency as "exterior paneling."
The coco coir binderless board is a technology which originated from the Netherlands’ Agro Technology and Food Innovations B.V. (A&F).
Eusebio however said the agency is planning to establish its own parameters in coming up with a "Filipino" method of conducting its own hot pressing schedule for the coco coir boards wherein 25 minutes is allotted for hot pressing time before disseminating the information to commercial plants.
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353751.html#
After the successful commercialization of virgin coconut oil (VCO) last year, scientists had discovered a new product out of coconut waste materials, particularly from coconut husks, which can now be used in the local construction industry as particle boards.
The Department of Science and Technology’s Forest Products Research and Development Institute (DOST-FPRDI), a DoST agency based in Los Baños, Laguna, has developed a binderless particle board made of 100 percent coconut husks.
In a phone interview with the Manila Bulletin, Dr. Dwight Eusebio, FPRDI project leader for the Pilot Scale Production of Binderless Coco Coir Boards, said that the project was aimed at establishing the conditions for making high performance, environmentally-safe building and packaging materials from coco coir without the need to use expensive and hazardous synthetic binders like formaldehyde.
He added that coco coir contains a lot of lignin which converts into a natural binder once it is hotpressed.
For this year, however, the agency is planning to "determine the durability of the coco coir binder boards when it becomes exposed to the environment," Eusebio said.
Eusebio added this will determine if the particle boards made of 100 percent coconut husks would be able to resist deterioration during extreme heat and heavy rains.
"Because we expect questions like this to come up (from investors) someday," he said.
A panel product produced through pressing under heat and pressure, Eusebio said that coco coir binderless boards are also being promoted by the agency as "exterior paneling."
The coco coir binderless board is a technology which originated from the Netherlands’ Agro Technology and Food Innovations B.V. (A&F).
Eusebio however said the agency is planning to establish its own parameters in coming up with a "Filipino" method of conducting its own hot pressing schedule for the coco coir boards wherein 25 minutes is allotted for hot pressing time before disseminating the information to commercial plants.
SMIC sets P2.4 B to build exhibition, call center facility
SMIC sets P2.4 B to build exhibition, call center facility
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353700.html#
SM Investment Corporation will break ground for two new buildings worth P2.4 billion in the first quarter of 2006 at the 60-hectare SM Central Business Park in Manila.
Based on a disclosure to the Philippine Stock Exchange (PSE) yesterday, SMIC will put up the Philippines’ first privately-run exhibition and convention center, and a 10-story courtyard-oriented e-commerce building.
Both buildings will be right beside the Mall of Asia, which is designed to become not just the Philippines’ largest but also the most complete and innovative shopping complex.
The 40,000-square meter SM Exhibition and Convention Center, the first of its kind in the Philippines, is envisioned to become a favored venue for major conferences and trade exhibits, as well as for other international and local events.
The building will have two floors, a mezzanine and basement parking with a total leasable area of 17,800 square meters featuring large exhibition areas and function rooms. Construction is expected to cost P900 million.
Meanwhile, the 94,000-square meter SM eCOMCenter will have a total leasable area of 67,900 square meters with 7 floors alloted for office space, two and a half floors for parking, and the ground floor for commercial uses.
The eCOMCenter will have a typical floor plate of 8,750 square meters with four service cores and is expected to cost P1.5 billion.
The SM eCOMCenter will provide offices and workspaces with leading edge facilities and amenities necessary for e-commerce businesses such as BPOs, call centers and other service companies.
The nearby SM Corporate Headquarters is already home to US-based Teletech while the soon-to-open Mall of Asia will house the call center of the world’s largest computer maker, Dell, Inc.
Both the convention center and the eCOMCenter are expected to be completed by the middle of 2007.
Apart from these two buildings, other developments are being planned for the SM Central Business Park.
These include corporate headquarters for one or two conglomerates, hotels, office and residential clusters, a coliseum for sporting events and entertainment shows as well as a ferry terminal.
Over the long term, the SM Central Business Park with its strategic location, will emerge as the foremost and the only central business district (CBD) by the bay, integrating business park facilities with entertainment, recreational, tourism, and residential land uses.
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353700.html#
SM Investment Corporation will break ground for two new buildings worth P2.4 billion in the first quarter of 2006 at the 60-hectare SM Central Business Park in Manila.
Based on a disclosure to the Philippine Stock Exchange (PSE) yesterday, SMIC will put up the Philippines’ first privately-run exhibition and convention center, and a 10-story courtyard-oriented e-commerce building.
Both buildings will be right beside the Mall of Asia, which is designed to become not just the Philippines’ largest but also the most complete and innovative shopping complex.
The 40,000-square meter SM Exhibition and Convention Center, the first of its kind in the Philippines, is envisioned to become a favored venue for major conferences and trade exhibits, as well as for other international and local events.
The building will have two floors, a mezzanine and basement parking with a total leasable area of 17,800 square meters featuring large exhibition areas and function rooms. Construction is expected to cost P900 million.
Meanwhile, the 94,000-square meter SM eCOMCenter will have a total leasable area of 67,900 square meters with 7 floors alloted for office space, two and a half floors for parking, and the ground floor for commercial uses.
The eCOMCenter will have a typical floor plate of 8,750 square meters with four service cores and is expected to cost P1.5 billion.
The SM eCOMCenter will provide offices and workspaces with leading edge facilities and amenities necessary for e-commerce businesses such as BPOs, call centers and other service companies.
The nearby SM Corporate Headquarters is already home to US-based Teletech while the soon-to-open Mall of Asia will house the call center of the world’s largest computer maker, Dell, Inc.
Both the convention center and the eCOMCenter are expected to be completed by the middle of 2007.
Apart from these two buildings, other developments are being planned for the SM Central Business Park.
These include corporate headquarters for one or two conglomerates, hotels, office and residential clusters, a coliseum for sporting events and entertainment shows as well as a ferry terminal.
Over the long term, the SM Central Business Park with its strategic location, will emerge as the foremost and the only central business district (CBD) by the bay, integrating business park facilities with entertainment, recreational, tourism, and residential land uses.
Small call center cottage industry eyed
Small call center cottage industry eyed
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353702.html#
The government has forged a partnership with an American foundation, an international call center solutions provider and a local school to develop 400 to 500 small- to medium-sized call centers in the countryside.
The undertaking should employ an additional 88,000 Filipinos, on top of the current 100,000 call center jobs, Ambassador Rigoberto Tiglao announced yesterday after the Jobs Generation Office of the Office of the President signed a memorandum of agreement with California-based solutions provider Five9, John F. Kennedy (JFK) Center Foundation Phils. And Systems Technology Institute to boost employment activities in the Information Communications Technology (ICT) sector.
Under the MoA, the government will provide the policy environment; Five9, the technology; JFK CF, the training and STI, the infrastructure and manpower to turn the Philippines into the next global customer care capital of the world after India.
All the activities now are in the small call centers on the 40-seat range, noted Brian Silverman of Five9.
Based on this, STI wants to be a halfway house for small call center entrepreneurship, not just turning out quality call center agents but teaching Filipinos how to run, monitor and manage call centers.
With its network of over 100 schools nationwide, STI is in the best position to provide the needed infrastructure and human resources to develop the call center business as a cottage industry in the provinces, says STI President and CEO Monico Jacob.
STI plans to establish call centers in STI facilities, with 20-50 seats each, with Five9 providing the technology and JFK Center training STI graduates prior to their employment as call center agents.
In addition, the Foundation can do a three to sixmonth "hand-holding" of the entrepreneurs and provide business clients for the STI school call centers, according to President and CEO Celso Santiago. The foundation is also looking at the feasibility of financing small call center entrepreneurs.
"We are confident that through this partnership, we can help the government generate 10 million jobs by 2010," Jacob concluded.
Fri Jan 13,2006
Manila Bulletin
http://www.mb.com.ph/BSNS2006011353702.html#
The government has forged a partnership with an American foundation, an international call center solutions provider and a local school to develop 400 to 500 small- to medium-sized call centers in the countryside.
The undertaking should employ an additional 88,000 Filipinos, on top of the current 100,000 call center jobs, Ambassador Rigoberto Tiglao announced yesterday after the Jobs Generation Office of the Office of the President signed a memorandum of agreement with California-based solutions provider Five9, John F. Kennedy (JFK) Center Foundation Phils. And Systems Technology Institute to boost employment activities in the Information Communications Technology (ICT) sector.
Under the MoA, the government will provide the policy environment; Five9, the technology; JFK CF, the training and STI, the infrastructure and manpower to turn the Philippines into the next global customer care capital of the world after India.
All the activities now are in the small call centers on the 40-seat range, noted Brian Silverman of Five9.
Based on this, STI wants to be a halfway house for small call center entrepreneurship, not just turning out quality call center agents but teaching Filipinos how to run, monitor and manage call centers.
With its network of over 100 schools nationwide, STI is in the best position to provide the needed infrastructure and human resources to develop the call center business as a cottage industry in the provinces, says STI President and CEO Monico Jacob.
STI plans to establish call centers in STI facilities, with 20-50 seats each, with Five9 providing the technology and JFK Center training STI graduates prior to their employment as call center agents.
In addition, the Foundation can do a three to sixmonth "hand-holding" of the entrepreneurs and provide business clients for the STI school call centers, according to President and CEO Celso Santiago. The foundation is also looking at the feasibility of financing small call center entrepreneurs.
"We are confident that through this partnership, we can help the government generate 10 million jobs by 2010," Jacob concluded.
Market gains ground on selective bargain hunting
Market gains ground on selective bargain hunting
The Philippine Star 01/13/2006
http://www.philstar.com/philstar/NEWS200601130703.htm
Share prices closed 0.37 percent higher yesterday on selective interest after a modest downturn Wednesday, dealers said.
They said profit-taking in telecoms limited the upturn but overall sentiment remains positive, with the market holding at 10-month highs on growing optimism about the country’s economic fortunes.
The composite index added 7.94 points to 2,158.65 after trading between 2,147.72 and 2,162.22. Volume was 642.4 million shares worth P1.27 billion.
The broader all-shares index was down 2.08 points at 1,018.62.
Gainers led losers 56 to 23, with 56 stocks unchanged.
Dealers said that while investors remain confident, there is some temptation to take profits too and this is keeping the market in check for the moment.
"Investors may be liquidating some of their holdings (in select stocks) to raise cash for an upcoming Initial Public Offer (IPO)," said Nestor Aguila of DA Market Securities.
Electricity producer First Gen, a unit of listed First Philippine Holdings, has tentatively scheduled its IPO from Jan. 31 to Feb. 6.
Ayala Land led the gains, finishing up 25 centavos at P10.50. Its parent company, Ayala Corp., was unchanged at P340 and affiliate Bank of the Philippine Islands was steady at P56.
Equitable PCI Bank rose P2 to P65 after key shareholders opposed a proposal to merge with Banco de Oro, which ended steady at P36.
Equitable PCI’s gain came after local newspapers reported that its major shareholders are lukewarm to a merger offer from Banco de Oro, prompting some investors to speculate the latter may try to sweeten the offer terms.
Philippine Long Distance Telephone Co. fell P10 to P1,845 while Globe Telecom declined P5 to P765.
San Miguel A-shares, limited to Filipino investors, were steady at P64.50 while San Miguel B-shares, available to Filipinos and foreigners alike, gained 50 centavos at P88.50.
"Technically, the market’s upward trend over the long term is intact. The appetite for stocks is still there," said DA Market Securities president Nestor Aguila.
The positive outlook is anchored on expectations that the government’s fiscal health will continue to improve as crucial tax reform measures are put in place, analysts said. The peso is expected to continue to strengthen against the dollar, aided in part by remittances from overseas Filipino workers, they added.
Ayala Land ended up 2.4 percent at P10.50, Jollibee rose 2.5 percent to P40.50.
All sectoral indicators advanced, except the all shares subindex, which retreated. Gainers led decliners 56 to 23, while 56 stocks were unchanged. – AFP, AP
The Philippine Star 01/13/2006
http://www.philstar.com/philstar/NEWS200601130703.htm
Share prices closed 0.37 percent higher yesterday on selective interest after a modest downturn Wednesday, dealers said.
They said profit-taking in telecoms limited the upturn but overall sentiment remains positive, with the market holding at 10-month highs on growing optimism about the country’s economic fortunes.
The composite index added 7.94 points to 2,158.65 after trading between 2,147.72 and 2,162.22. Volume was 642.4 million shares worth P1.27 billion.
The broader all-shares index was down 2.08 points at 1,018.62.
Gainers led losers 56 to 23, with 56 stocks unchanged.
Dealers said that while investors remain confident, there is some temptation to take profits too and this is keeping the market in check for the moment.
"Investors may be liquidating some of their holdings (in select stocks) to raise cash for an upcoming Initial Public Offer (IPO)," said Nestor Aguila of DA Market Securities.
Electricity producer First Gen, a unit of listed First Philippine Holdings, has tentatively scheduled its IPO from Jan. 31 to Feb. 6.
Ayala Land led the gains, finishing up 25 centavos at P10.50. Its parent company, Ayala Corp., was unchanged at P340 and affiliate Bank of the Philippine Islands was steady at P56.
Equitable PCI Bank rose P2 to P65 after key shareholders opposed a proposal to merge with Banco de Oro, which ended steady at P36.
Equitable PCI’s gain came after local newspapers reported that its major shareholders are lukewarm to a merger offer from Banco de Oro, prompting some investors to speculate the latter may try to sweeten the offer terms.
Philippine Long Distance Telephone Co. fell P10 to P1,845 while Globe Telecom declined P5 to P765.
San Miguel A-shares, limited to Filipino investors, were steady at P64.50 while San Miguel B-shares, available to Filipinos and foreigners alike, gained 50 centavos at P88.50.
"Technically, the market’s upward trend over the long term is intact. The appetite for stocks is still there," said DA Market Securities president Nestor Aguila.
The positive outlook is anchored on expectations that the government’s fiscal health will continue to improve as crucial tax reform measures are put in place, analysts said. The peso is expected to continue to strengthen against the dollar, aided in part by remittances from overseas Filipino workers, they added.
Ayala Land ended up 2.4 percent at P10.50, Jollibee rose 2.5 percent to P40.50.
All sectoral indicators advanced, except the all shares subindex, which retreated. Gainers led decliners 56 to 23, while 56 stocks were unchanged. – AFP, AP
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