Meralco (MER/MERB)

[miner]

Agree with CBF, what goes in must come out

[dina natuto]

might have something to do w/ the listing of additional shares for employees' stock option. ok lang

[miner]

How old are you miss dina?

Employee stock options is never a factor for prices to go down

[miner]

Miss Dina, here is your answer
http://business.inquirer.net/59781/psei ... -bloodbath

[Sjl]

Weighting must have been reduced during the MSCI rebalancing.

Nothing to do with fundamentals.

Sir, what do you mean by this?

thanks.

the MCSI index is sort of like a benchmark group for Philippine stocks that some foreign funds follow. Today, new companies were added some some companies' index weight was changed (i.e. a smaller part of the index is allocated to that company). MER was one of the companies that had a weight cut so foreign funds based on the MCSI index must sell MER to approximate the appropriate weight of MER in the index, whether they want to or not.

thanks.

stuck with this.

[jpingpong]

Miss Dina, here is your answer
http://business.inquirer.net/59781/psei-slides-below-4900-in-bloodbath

When the price went down, I took it as an oppurtunity to buy.

[Li Cousin]

Our factory pays MER a high minimum monthly charge whether we consume power or not. Better that I benefit from it, too.

From one pocket to another.

[fuji]

Manila Electric Co., the power retailer that sold its plants to the government almost four decades ago, will team up with a Japanese utility to build the Philippines’ first natural gas-fired power plant in more than 10 years to help reduce outages.

The proposed 1,500-megawatt plant may be built in the southern part of Luzon with half the project likely to be completed in late 2016, chief operating officer Oscar Reyes said in an interview at his office on May 24. He declined to name the Japanese company because a feasibility study is still being conducted.

“We’re now building our own generation portfolio to contribute to the issue of adequate power and help control prices,” Reyes said.

http://business.manilastandardtoday.com ... rm-tie-up/

[ColdFeet]

bumili ako nito pambayad ng kuryente namin.

[ColdFeet]

panalo sa kaso.
http://www2.pse.com.ph/html/disclosure/ ... 77_MER.pdf
ano ba ang ibig sabihin nito, mga guru.

[Li Cousin]

I'm no guru but let me attempt to explain.

To make the 17 page disclosure short and simple, allow me to itemize the salient points without going into full details (as these can be gleaned from the disclosure document):

1. Background: Nov, 1994. MER entered into contract with NPC to purchase a minimum and specified volume of electric power from the latter for the period 1994 to 2004.
2. MER failed to draw enough power from NPC’s facilities from 2002-2004 and did not pay for the undrawn energy of the contract.
3. NPC sued MER and MER made counter-claims.
4. By virtue of arbritration settlement, both parties agreed that MER should pay NPC a net amount of +-P14B and the same would be passed on to the Meralco consumers to be paid over 5-6 years.
5. The pass-through charges to MER customers were submitted jointly by MER and NPC to ERC for approval in April 2004.
6. OSG intervened and objected this proposal in 2006.
7. MER seek relief from RTC.
8. May 29, 2012: RTC gave MER and NPC the green light to submit the application for the approval of the settlement provision (To allow the pass-through to MER consumers the settlement amount payable to NPC.)

Wow! It took the case 8 years just to go back to square 1 (item #5). And we're not even sure what will be the outcome of ERC's decision.

It should be noted that the entire episode happened during the management of the Lopezes.

[Davinci]

What I cant understand is why should Meralco subscribers absorb the cost of a bad business judgement by MER management, that of committing a higher level of power on a take-or-pay basis?

D

[trxtan04]

What I cant understand is why should Meralco subscribers absorb the cost of a bad business judgement by MER management, that of committing a higher level of power on a take-or-pay basis?

D

Because Meralco is a monopoly.