Welcome to the top twenty something index issues of the PSEi that have big market capitalization, plus some banks and financial big caps as well
Singaporean firm gets 40% of SkyCable
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:58:00 05/12/2011
Filed Under: Mergers - Acquisitions - Takeovers, Satellite & Cable Services, business, Internet, Television
MANILA, Philippines—Singaporean private investment firm STT Communications Ltd. has infused fresh capital into SkyCable to fund the expansion of the latter’s broadband Internet and pay TV services.
SkyCable’s parent firm ABS-CBN Corp. on Thursday disclosed that Sampaquita Communications Pte Ltd., a unit of STT, had acquired a 40-percent economic interest in SkyCable through the purchase of P3.612 billion worth of Philippine Depositary Receipts (PDR) and P250 million in convertible notes.
The PDRs and notes were issued by SkyCable’s parent firm Sky Vision Corp., which is owned by ABS-CBN (80 percent) and Lopez Holdings (20 percent).
http://business.inquirer.net/money/tops ... f-SkyCable
Posted on May 12, 2011 10:14:05 PM
ABS-CBN profits down 10% in Q1
BROADCASTER ABS-CBN Corp. is maintaining its yearend target of matching 2010’s performance despite recording a drop in profits in the first quarter, an official yesterday said.
http://www.bworldonline.com/content.php ... ts-down-10%-in-Q1&id=31254
Congrats Tonying for your recent XXX expose'; indeed, it shows the Quality of ABS CBN hands-on news anchorman...Galing! Wala yan sa GMA, TV-5*. No wonder; ABS CBN is the one and only NO. 1 Global wide Yung no. 1 ginagawa; hindi creation ng sampol survey surveyan (gaya ng kabila). For paano mo iiclaim no.1 ka kung ang income mo nag nose dive ng 38% from 855 to 500; biggest joke ever My Personal Views.
*Pero may Wiltime Bigtime sila; nawala tayo at favorite primetime show ko ngayon
i just received from the courier the packet of documents for the asm on 16 june 2011. i have not gone over the fs but i know 2010 was a banner year for abs. what i did just now is i reviewed the thread covering the fiscal year 2010 and i just want to go back to the posts about a year ago regarding the BOD approved 2.5B share buyback. that time i expressed my position against the share buyback. i said i preferred a cash div instead of a buyback. i said then that a sharebuy back does not benefit the shareholders .. it only benefits those opt to sell their shares at a premium (despite the rationale for the buyback that the abs cbn shares were undervalued).
so what happened? the share buyback was announced around 29 july 2010 .. the abs closing price was 39.50. what is the abs share price now 3 june 2011? its an amazing 39.40!!! the abscbn management budgetted 2.5B for the buybak. the buyback was from 2 august 2010 (closing price 43.5) up to 30 dec 2010 (closing price 45).
between then and now .. the abs cbn share price seemed to be stuck to 39 pesos. but between the period of the sharebuy bak ... abscbn reached a high of 57 pesos per share (29 sept 2010). with volumes reaching a peak of almost 1M shares on 11 august, barely 2 weeks from the start of the buybak with a closing price of 53.90. i have not read the FS yet to see how the buybak was carried out .. but just looking at the volume and price action during the share buyback duration, one can glean that 2.5B was spent to buy bak shares at higher prices!
if the buybak was to enhance shareholder value, management should have bought when abs was below 39 pesos (abs was already at its highs when the buy bak was announced). in effect, as i asserted then, abs did not benefit the shareholders (the price of abscbn then is the same as now .. but MINUS 2.5 billion pesos that could have been given to shareholders). it benefitted (at the expense of shareholders) those who sold abs cbn shares since they were able to sell it at higher prices (a profit of 17 pesos per share if one sold at the peak during the buybak program). and guess who were the sellers?
buy bak of shares enhancing shareholder value? in theory yes. but no, if one knows abs cbn management. ive been an abscbn shareholder for about 15 years now and i guess i need no lecture about share buybaks lalo na kung galing din lng nman sa libro ang arguments for it. the price action only shows that the sharebuybak only benefitted the sellers/traders .. not the shareholders who are left 2.5B pesos poorer. the higher eps is pure BS .. di naman cash ko yan ... a cash div of an additional 3 pesos per share would have been better double taxation notwithstanding (2.5B divided by 780M listed shares). shabbat shalom. amen.
pls refer to page 18 of the thread for the buybak discussion last year.
... weno ngayon shoyu .. ano pinuputak mo jan? e di sana nag sell ka nung 57 yung abs cbn .. kumita kapa?
... yep .. kumita sana ako (and who said i did not sell at higher prices? ). pero thats not my point. my point then .. and still my contention .. sharebuy baks are not necessarily good for shareholders. yun lang
in short .. management packed me in da pwet
thanks shoyu... I share your view sa shareback. Same thing when I ask sa AC na meron silang buyback. Their earnings are not improving and clearly they need money to venture sa new business para maibalik ang old glory. Why would you program a shareback tapos mangungutang ka?
I guess its a double edge sword.
i just noticed from the 1Q2011 FS ... abs has an acs of 1.5B shares with only 780 M listed. it has 16.8B pesoses in retained earnings and 7.2B pesoses in cash. while a 2.1 peso cash divs was already given this march, pede pa isa special cash divs maybe before christmas or a 50-100% stock divs? .. ser gabby .. ehem.. ehem
If I am not mistaken their loan covenants have restrictions from paying dividends, before it was 50%. Am not sure if they were able to relax some of the covenants when they restructured.
I don't think they were able to fully use up the PhP 2.B earmarked for the buybacks. Clearly it was an accommodation as it had a specific period to end. That's why they had to buy it up, not to mention that liquidity was/is already an issue.
If you found the drop in NI of GMA to 500 the biggest joke ever, what do you think of ABS' core NI of only 300M? Their reported net income didn't drop as much because of the one time gain of PhP 600+M from the sale of Skycable PDRs.
Their global business took a hit in terms of subs count while their competitor showed growth.
ABS relies on the same kind of survey for their claims of being #1, the only difference is that they are the only network using/supporting it (Kantar). AGB Nielsen by far is the widely used survey provider.
There is no problem with you cheering for ABS but at least get your facts straight for the benefit of others.
ABS CBN way way ahead as No. 1. May NBA; May UAAP; and May Azkhals pa sa July 3. Heard from the grapevine...expect the no. 2 to be threatened further
by TV-5. Kaya Ninong Gabby (sana); about time our stock zoom back to 60 and beyond
PD: With ABS CBN
ABS-CBN ROE (2010-2005): 18%, 10.61%, 9.17%, 8.86%, 5.44%, 1.9%
GMA7 ROE (2010-2005): 27.39%, 25.9%, 24.28%, 27.02%, 28.35%, 32.58%
ABS-CBN ROA (2010-2005): 8.16%, 4.89%, 4.19%, 4.85%, 3.10%, 1.02%
GMA7 ROA (2010-2005): 21.91%, 20.59%, 19.00%, 19.74%, 19.18%, 21.36%
I like ABS-CBN shows too, but to invest in ABS as opposed to GMA7? For me: biggest joke ever My Personal Views.
Anybody care to defend me why ABS CBN is indeed no. 1 in viewership ; no wonder it baffles me why GMA 7 share prices can't even hit 8.5 given the "amazing' fundamentals. Why ABS is way ahead at 40.50/sh I think the game here is more on the Asset Valuations of its high tech equipments; which No.2 pales in comparison. As to the 500; it is WITHOUT elections-related income already which is reflective of the whole industry. My Own Views.
Well; I like Ann and Kim better than Marian Mas malakas ang dating kaya sila rin ang kinuhang signature models ng SMDC
PD: With ABS CBN; no GMA 7/Nielsen.
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