PSE Points to Ponder

In the nine months ending 30 September 2023, WILCON DEPOT reported a 10.2 billion gross profit, up 0.6 billion from the same period in 2022. The figure marks a 6.56% improvement in gross profit. But it is not only the gross profit that has been increasing. Operating expenses grew to 6.6 billion from 5.6 billion a year earlier.  That would mark a 17.43% increase in operating expenses. The growth in operating expenses outpaces the improvement in the gross profit.  Store expansion may need to produce more gross profit to cover the associated operating expenses of the expansion.  Otherwise, there is value destruction. Year-to-date WLCON is down 33.56%.

As already known by anyone, Lopeze's risk management system failed to avert the imminent risk that the legislative franchise of ABS-CBN will expire and not be renewed by the Philippine Congress. The Lopezes' failure to secure a congressional franchise to broadcast for ABS-CBN triggered the company's default on its loans to its creditors. Since then, ABS-CBN has been at the mercy of its creditors. ABS-CBN and its lenders agree that, upon satisfaction of the necessary conditions under the Omnibus Security and Intercreditor Agreement (the "Standstill Effective Date") and during the effectivity period (the "Standstill Period") of the standstill as specified in the Omnibus Security and Intercreditor Agreement, it shall not declare an event of default to the extent that it relates to the Franchise Expiration Default. The Standstill Period shall be from the Standstill Effective until the Long Stop Date (December 31, 2023) . The Omnibus Security and Intercr...