San Miguel Corp (SMC/SMCB)

[XYZ]

SMC buying binge goes on with 8 more deals

When Ramon Ang set San Miguel Corp. on its current path of aggressive diversification, he told an incredulous public that he would double the revenue of what was then Southeast Asia’s largest food and beverage company by 2015.

By all indications, SMC will hit that target by the end of this year as the conglomerate is set to continue with its acquisition binge, just weeks after sealing a partnership that gave it control of Philippine Airlines.

The total project cost, he said, including the elevated tollway, a modern air terminal, runways and the acquisition of land will be in the vicinity of $5 billion.

There are, in fact, a number of doubters in the local business community—all of whom declined to go on record—who question the group’s strategy, especially its reliance on leverage to finance its buyouts.

But the SMC chief is unfazed, flipping out a chart to show that the group’s ratio of net debt to earnings before interest, taxes, depreciation and amortization (Ebitda) stands at only 2.14 times—only about a third of the ratio of 6 times the group is allowed to take.

http://business.inquirer.net/56657/smc- ... more-deals

[bubwit04]

Ano na ba kalagayan nito? Di na yata tataas. Ipit na yung shares ko. Pambili ko pa naman iyon ng laptop.

[zimmy]

might be a case of diworsification

[XYZ]

my second to the last quote above i think is what's hindering the price to go up.

to add -

San Miguel Corp. (SMC.PH) plans to increase its authorized capital to PHP30 billion ($701 million) from PHP22.50 billion by creating new common shares and 1.1 billion new preferred shares, its board said Wednesday.
The company said it plans to issue the 1.1 billion new preferred shares to fund expansion projects.

The fund-raising plan will be submitted to shareholders at the company's June 14 annual meeting.

this could possibly pull the price further down. however, this news was released April 18 and there was minimal movement since then. already priced in?

[Luckypick]

Grabe SMC, they are buying stuff with other people's money! Don't let them use yours. S & P already gave a negative review on SMC bec of its high debt profile and the latter requested the former to stop covering SMC in their research/advisories.

[choobeebo]

Luckypick - sssshhh. If SMC borrows money to buy equity in a subsidiary, what happens to her debt to equity ratio? If that subsidiary borrows money also and buys equity in another subsidiary, what happens to the debt to equity ratio? Just asking.

[contrarian]

Grabe SMC, they are buying stuff with other people's money! Don't let them use yours. S & P already gave a negative review on SMC bec of its high debt profile and the latter requested the former to stop covering SMC in their research/advisories.

do you have a link for the review?

[Luckypick]

Try to back read on the dates during their 2PO last year. They even made a disclosure in the PSE regarding their counter argument on the unfavorable recommendation/review of S&P

[kendo]

time to invest on this giant before it wakes up

[scorpio8]

time to avoid!!!!

[jergo]

120 looks reachable,ganyan lang muna dito.

[Philinvestor]

Officials of San Miguel Corp. (SMC) and Japan’s Kirin Holdings are meeting this week to decide on whether to keep their joint venture San Miguel Brewery Inc. a publicly listed firm or proceed with its voluntary delisting, just four years after the beer maker went public.

At the sidelines of SMB’s shareholders’ meeting on Tuesday, SMC president Ramon Ang reiterated that the diversified conglomerate will not reduce its controlling 51 percent stake in SMB. This leaves the decision to delist the country’s biggest beer maker from the Philippine Stock Exchange in the hands of Kirin, which owns the remaining 48 percent.

SMB currently has a public ownership level of just 0.6 percent, well below the 10 percent required by the PSE, which will start suspending noncompliant firms beginning 2013 before the bourse itself begins delisting procedures. x x x

http://www.businessmirror.com.ph/home/c ... ewery-unit

What? They will list a subsidiary and then eventually delist it? SMC has recently ventured in buying and selling companies. Where is the direction for this Company?

[surfer]

sir phil, you are not comfortable becoming the third biggest stuckholder in Smb in 2013 ?