Stock News 2010: Buy SM Development Corp.

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SM Development Corp.

Recommendation: Accumulate on Weakness

SM DEVELOPMENT Corp. is one of the most attractive stocks to buy nowadays given its rosy growth prospects, according to brokerage firm A&A Securities, Inc.

Technical-wise however, analyst Jeng T. Calma cautioned its share price has already peaked, offering less gain to interested investors.

“SMDC’s closing price of P7.60 per share last Friday is just 40 centavos away from its resistance level of P8 per share — its all-time high,” she said.

A favorable outlook on the property sector, the company’s future expansion plans and profits jumping by 24% to P1.3 billion in the first half all contributed to the rise in SMDC’s share price to P7.60 last Friday from just P7 apiece the other week, according to the analyst.

Ms. Calma advised investors though to wait until the stock’s price fall to at least P7.50 apiece.

“With the market projected to be in the bull-run, I believe there is still room for SMDC’s share price to rise… For now, better wait for some correction,” she said.

Share Price	7.6
High (past 52 weeks)	7.6
Low (past 52 weeks)	3.75
Market Cap. (M)	41,771.70
Price-Earnings Ratio	11.74
Earnings Per Share	0.34

Gloria Krisana L. Gallezo

September 6, 2010

http://www.bworldonline.com/Research/stockpicks.php?id=0668

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International News 2010: Wendy's/Arby's: Add to Your Watch List

Image via WikipediaBOSTON (TheStreet) -- Restaurant company Wendy's/Arby's Group(WEN) gets no love from investors, but the company delivered solid quarterly numbers, exceeding analysts' earnings forecast by 25% and matching their sales estimates.
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Wendy's stock has fallen 25% from a 52-week high on April 26, but considering the volatility of stocks in recent weeks, Wendy's/Arby's Group appears to be a comparatively safe investment at its current price.
The company's second-quarter net income dropped 28% to $11 million, but earnings per share remained steady at 3 cents. The gross margin hovered at 25%, but the operating margin extended from 7.5% to 8.6%. Wendy's comparable store sales declined 1.7% while Arby's registered a drop of 7.4%. However, revenue fell just 3.9% to $877 million. Operating profit was boosted by a 3.9% decrease in the cost of sales and a 14% drop in general and administrative expenses. Although respective business performance was lackluster, there is reason for optimism.
Wendy's has ambitious international expansion plans. Since Wendy's and Arby's merged in 2008, they have opened up 45 restaurants outside of North America. And management has signed development agreements for 400 new international locations over the next 10 years. Franchise sales comprised just 12% of quarterly sales, so the international franchise arena is a preferred growth venue. The balance sheet stores $508 million of cash, equaling a quick ratio of 1.4, and $1.6 billion of debt, converting to a debt-to-equity ratio of 0.7.
Wendy's stock has dropped 36% a year, on average, since 2007. In 2010, it has fallen 11%, more than the S&P 500, which is down 4%. Wendy's is a pricey stock. It commands a forward earnings multiple of 23, on par with other restaurants, but higher than the S&P 500 average. But its book value multiple of 0.8, sales multiple of 0.5 and cash flow multiple of 7 reflect discounts of 86%, 81% and 43% to restaurant averages.
Quarterly return on assets widened to 0.2% and return on equity rose to 0.3%, lagging the industry average of 27%. Both measures were negative in the year-earlier quarter.
Analysts' opinions of the company vary. Six, or 38%, advise purchasing its shares, nine recommend holding and one advocates selling them. A median target of $5.18 suggests a potential return of 25%. CL King expects the stock to gain 68% to $7. Oppenheimer predicts a rise of 27% to $5.30. Deutsche Bank(DB) projects a climb of 26% to $5.25.
http://www.thestreet.com/_yahoo/story/10842282/1/wendysarbys-add-to-your-watch-list.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

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Stock News 2010: Anchor Land Posts Income Hike for 11th Consecutive Quarter

Image via Wikipedia

Listed high-end developer Anchor Land Holdings, Inc. has reported that its net income for the first half of 2010 has reached P250.5 million, up 35 percent compared to the P185.7 million earned during the same period last year.

Officials said it was the 11th quarter of consecutive income and revenue growth for the company, dating back to its listing in the Philippine Stock Exchange in August of 2007.

In a disclosure, the company said second quarter revenues also jumped 15 percent to P1.12 billion, higher by P147.2 million compared to the P973.43 million in revenues from January to June 2009. ALHI Chairman Stephen Lee Keng said higher real estate revenues contributed to the company’s sustained growth, mainly from the increase in the number of condominium units sold and the increase in the recognition of the percentages of completion of its ongoing projects.

He said recognition of revenues from its best-selling SoleMare Parksuites project at the ASEANA Business Park in Parañaque City started in the 3rd quarter of 2009, while recognition of revenues from its Wharton Parksuites project in Binondo started in March of 2010.

“Clearly, we have established traction and momentum in the market as evidenced by our strong second quarter results,” Lee Keng said. “With more projects in the pipeline, we are very confident of sustaining this trend of increasing profitability and creating value for our shareholders.”

Lee Keng said that since the company went public in 2007, Anchor Land has been able to sustain its upward financial performance due to the strong niche market it has carved in the Filipino-Chinese community, and lately in the overseas Filipino market.

The company reported consolidated revenues of P1.63 billion for 2009, surpassing the P1.36 billion revenue in 2008.

Earlier, the company also reported a first quarter net income of P138 million for 2010 from revenues of P546 million.

Anchor Land has completed three luxury condominium projects to date: The 33-storey Lee Tower along Gandara Street in Binondo, the 33-storey Mayfair Tower along UN Avenue in Manila, and the 39-storey Mandarin Square (under its subsidiary Manila Towers Development Corporation) along Ongpin Street, also in Binondo.

The company broke ground and started selling Solemare Parksuites in December 2008. SoleMare is a pioneer residential condominium in the Bay City, an emerging leisure and entertainment destination off Manila Bay, which has been warmly received particularly by Filipinos based overseas.

Anchor Land started construction of the 56-storey Anchor Skysuites along Ongpin Street, projected to become the tallest building in the City of Manila, and the 39-storey Wharton Parksuites along Masangkay Street, which caters mainly to those who send their children to prominent Chinese learning institutions in the district.

In July of 2009, the company acquired the historic Admiral Hotel along Roxas Boulevard in Manila which it plans to redevelop into a boutique hotel. Two high-rise residential condominiums are likewise planned within the sprawling property. The company targets to launch the project by the last quarter of this year.

ANCHOR LAND HOLDINGS, INC.

Registrant

By:

CHRISTINE P. BASE

Corporate Secretary


http://www.pse.org.ph/html/disclosure/pdf/2010/pdf/dc2010-5701_ALHI.pdf

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Stocks News 2010: Philippines AP in supply deal with CASURECO IV

Image via WikipediaA provisional approval of the Energy Regulatory Commission (ERC) is being sought for the power supply agreement (PSA) inked by AP Renewables Inc. (APRI) of the Aboitiz group with that of Camarines Sur Electric Cooperative Inc. (CASURECO IV).
The supply pact requires the power generator to deliver power to CASURECO IV until January 25, 2013 within the prescribed contract energy.
It was stipulated in the deal that “the total minimum contract energy to be supplied by APRI to CASURECO IV for each month of the contract period will range from a low of 2,496,702.55 kilowatt hours to 3,314,899.13 kWh.”
Power supply will come from the Tiwi geothermal plant in Albay, which forms part of the 747-megawatt geothermal facility acquisition of APRI that included the Makiling-Banahaw plants in Laguna.
“APRI shall supply the contract energy at the Tiwi geothermal power plant. Line rental charges and transmission fees for delivery and transmission of the contract energy shall be for the account of CASURECO IV,” the PSA stated.
It has been emphasized that the transmission service agreement (TSA) between CASURECO IV and the National Grid Corporation of the Philippines (NGCP) as well as the TSA between APRI and NGCP are currently being negotiated.
The electric cooperative noted that it selected APRI because of its capacity to supply its power requirements. Three parties have made offers, but the two are reportedly aggregators, hence, they do not own or operate power plants which could have been the ultimate assurance that they can meet the electric coop’s demand.
The PSA further provides that should CASURECO IV decides to reduce its contract energy, “it shall pay APRI a buy-out charge equivalent to P2.00 per kWh multiplied by the foregone contract energy for the remainder of the term of the PSA.”
Based on calculations provided to the ERC, the proposed rates to be charged by APRI to the electric cooperative would be P4.4758 per kWh during Mondays to Saturdays and P2.7284 per kWh on Sundays and holidays.
A comparative analysis also emphasized that if compared to the rates that should have been charged by state-run National Power Corporation (NPC) at P4.8309 per kWh, the APRI charge employing the same formula would be lower at P4.3655 per kWh.

MYRNA M. VELASCO

June 8, 2010, 3:48pm

http://www.mb.com.ph/node/261099/

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Stocks News 2008: Cityland seeks SEC approval to sell P1B in short-term debt

Image via WikipediaMANILA, Philippines - Listed property developer Cityland, Inc. sought regulatory approval Tuesday to sell short-term commercial paper to the public worth P1.15 billion, a bulk of which will be used to pay off maturing debts.
The firm told the Securities and Exchange Commission it planned to use P770 million of the proceeds to settle loans worth P1.03 billion as of June 30.
Of the debts, about 86% are composed of commercial paper issued on Dec. 17. The rest is owed to Amalgamated Bancorporation and Security Bank Corp., the company said.
Cityland said it also intends to use over a quarter of the proceeds to finance its 39-storey mixed-use condominium project called The Manila Residences.
It said it would spend the money on the project over 12 months. The balance will be used to pay for interest on the notes.
Cityland said it would offer almost three-fourths of the commercial debt paper to general public, while the balance would be made available to big investors.
The company said the debt paper would be offered in four equal tranches, the first to start as soon as gets approval from the commission.
Cityland said the notes would mature in a year and would have a rate of 6.88%. It said the proceeds of the sale would not be used to acquire property within the next twelve months.
Cityland also sought an exemption from getting an underwriter for the offer, saying it was capable of selling the debt paper on its own.
The real estate developer said that it would renew the maturing debts to financial institutions if it does not raise the money from the offering.
The company, formerly known as Statehouse Development Corp., acquires and develops land for mixed-use medium- and high-rise buildings in Makati City and Mandaluyong City.
It also sells affordable houses in Pasig City and residential subdivisions and farm lots in Bulacan and Cavite.
Cityland is the developer of the Pasig Royale Mansion, Oxford Mansion, Windsor Mansion and Brentwood Mansion. Launched on Aug. 21, the newest Brentwood Mansion will rise along Evangelista St., New Santolan in Pasig City.
It is a 12-storey commercial and residential building with features and amenities such as a clubhouse and swimming pool, and 24-hour security.
11/05/2008 | 01:14 AM

http://www.gmanews.tv/story/131378/Cityland-seeks-SEC-approval-to-sell-P1B-in-short-term-debt

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