Corporate news - February 13, 2007 (AM)

Ayala Corporation
Ayala Corporation (AC) earnings up 49%. In its unaudited consolidated net income for 2006 rose from the Php 8.2 billion in 2005 to a record PhP 12.2 billion in 2006, due to growth of its operating units, lower interes expense and gains from asset sales.
Last trading price: PhP 625.00

Subsidiaries:
Ayala Land Inc. (ALI) consolidated profits up PhP 3.9 billion in 2006 up 7% from last year. Consolidated revenues up 20%.
Last trading price: PhP 16.25

Bank of the Philippine Islands (BPI) net income of Php 9 billion, 8% higher than 2005's level. Revenues grew by 9%.
Last trading price: PhP 70.00

Globe Telecom (GLO) consilidated net income of about pHp 12 billion, 14% higher than the previous year. (Wireless subscriber base grew 26% and reached 15.7 billion at year end.
Last trading price: PhP 1,355.00



Abacus Consolidated Resources & Holdings Inc . (ABA)
In a statement, Abacus Consolidated Resources & Holdings Inc., said that its 96.4% owned unit, Philippine Regional Investment Development Corp., has signed a MOA with Solar Resources Inc. ( a unit of of broadcast and cable television company Solar Entertainment Corp.) to develop a 120-hectare property in Batangas, into a high-end residential complex.
The Abacus unit will contribute the land, while Solar Resources will provide facilities.
Construction and development is expected within four years from commencement.
Last trading price: ABA PhP 0.01 / ABAB PhP 0.012

reference / source: Manila Bulletin Business Pages; February 13, 2007


MacroAsia ( MAC)
Jinchuan Group Ltd the largest producer of nickel and cobalt in China is conducting due diligence in MacroAia's mine site in Brooke's Point Palawan.
Last year, MacroAsia disclosed it secured a Mineral Production Sharing Agreement (MPSA) from the Mines and Geosciences Bureau for mining operations in the 1,113.98 ha. of land in Brooke's point in Palawan
Last trading price: PhP 2.16


Belle Corporation (BEL)
Lottery systems supplier Pacific Online Systems Corp. ( a unit of Belle Corp.) has filed registration documents with the SEC.
The Company is set to offer 340 mn woth of shares through an IPO next month at a range of PhP 8.50 - PHp 9.30. Total number of shares to be offered is 39.8 million.
The company, 43% owned by Belle Corp., 37% owned by Abacus Global Technovisions Inc. and 20% owned by Tanjong Public Ltd. Co, a Malaysian holding firm, will be listed in the first board of the Philippine Stock Exchange.
Last trading price: PhP 1.30

reference / source: BusinessWorld, Corporate News Pages; February 13, 2007 (Tuesday)


With the news that came out in the morning dailies/ papers, we will try to see if the news that came out today will affect trading and stock prices.
Investors may buy into the stocks on a knee jerk reaction. In a bullish market where the short term trading has been on a roller coaster ride with a wide trading band, corporate news may provide direction. If the news has already been factored in, (especially in stocks which has already experienced a run up before today), a sell on news strategy may be adapted by some investors to take profit.




Start of Campaign period
Today marks the official start of another political exercise. It would be noteworthy to track of the events leading to the coming elections (and beyond) and track stock market movements in relation to them.

Last year, we wrote a paper taking note of events in the 2nd and 3rd quarter of 2005 (Jueteng gate, Garci tapes, Hyatt 10, E-VAT) and tracked the stock market movement for the same period. By January 2006, the market was testing the 2176 level which was then a year high. We will try to see if we can post it in our blog.