August 22, 2011- A Little Common Cents Corner #5- Philippines is Awash with Cash

I just had to make brief comments with the following news links:

1.) Benguet Corp (BC) according to Phil Star earned Php580 Mil from its nickel operations compared to losing Php88 Mil  last year

Read News here: http://www.philstar.com/Article.aspx?articleId=719231&publicationSubCategoryId=66

2.) Premier Entertainment (PEP) according to Phil Star will have Php150 Mil private placement in order to fund their venture into mining (Wow, everyone wants to be in the metals space)

More here: http://www.philstar.com/Article.aspx?articleId=719227&publicationSubCategoryId=66

3.) Pure Gold Price Club (IPO) – According to Inquirer – SEC just approved a P10.8-billion initial public offering by grocery chain Puregold Price Club Inc., the country’s second largest retailer.

Based on a revised prospectus approved by the SEC, Puregold plans to offer up to 600 million common shares at a price of up to P18 per share, potentially ceding to the public about 34.5 percent of its outstanding stock after the IPO.  Stock debut is targeted for end-September or October.

Read more here: http://business.inquirer.net/13767/sec-approves-puregold-initial-public-offering

4.) Sta Lucia Land (SLI) – According to Businessworld, the company earned Php100 Mil worth this quarter.

Read more here: http://www.bworld.com.ph/content.php?section=Corporate&title=Sta.-Lucia-Land-net-income-quadruples-on-higher-sales&id=36887

Comments:

Philippine companies are taking advantage of market’s bullishness to raise funds, make private placements and sell as much shares as possible with the recent bullishness in the gold mining sector.  While the fact that most companies are confident that their IPOs for instance won’t flop with the current market sentiment, caution as always is advised 🙂

All the news above only breeds and fuels the fact that Philippines is completely and breathtakingly ignoring everything else happening outside the region.  It seems only investment bankers are making the most of the bullishness to release the IPO as soon as they can.  Note that the IPO price for Pure Gold was revised from 16 pesos to 18 pesos.  🙂

Philippine companies seem to be making money left and right (at least for the mining, and property sectors- note the great numbers posted by ALI,MEG,FLI as well in their earnings reports).

Of the charts mentioned above, most interesting chart wise has to be PEP but I still don’t understand what’s cooking there, nor do I have any conviction to make any statement other than wild guesses. See my analysis ( Active Third Liner Stocks)

– The Faceless Trader

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