PSE Points to Ponder

MM surge in value could not be justified by fundamentals. Before the public offering (IPO), MM’s balance sheet is at 915 Million Pesos. The proceeds of the IPO at 1,500 Million Pesos (1.5 Billion) doubles MM’s balance sheet. However, the balance sheet growth will not translate into a magnificent net income growth. There is a high barrier to entry in the non-discretionary retail industry. The dominant players are well entrenched and have long established an economy of scale in their operations. SM Investments ( SM ) is well entrenched not just in SM Malls but also in third party-owned locations with Save More, Watsons, SM Supermarket, Waltermart, and Alfamart. It is not just SM but also Robinson Retail Holdings ( RRHI ) with Robinson Supermarket, Ministop, The Generics Pharmacy, Rustan’s, etc.; Puregold ( PGOLD ) with Puregold, S & R, ThreeSixty Pharmacy, etc.; Philippine Seven Corporation ( SEVN ) with7-11; Metro Retail Stores Group, Inc. ( MRSGI ) with Met...

Yes, the non-renewal of the ABS congressional franchise to operate a free-to-air broadcast is a clear attack on the on press freedom and on democracy itself. When no less than the President of the Republic whose policy has been frequently criticized by the network announced that he will not move for the renewal of the network’s congressional franchise, it is undoubtedly a curtailment of the freedom of expression, of the free speech and of the free press. It maybe even evil to suggest or impress that the controlling interest, the Lopezes, should sell for the network’s congressional franchise to be renewed. While it is an attack on the constitutionally guaranteed freedoms, the government more particularly the Congress has done nothing illegal. It has been clearly provided for by the Constitution that the Congress has the sole prerogative to grant or deny any congressional franchise. What has happened is the weaponization of a political tool to attack the freedom of the pr...