PSE Points to Ponder

We r eported earlier that the SM heir has transferred 30 Million SM shares to a company he controls. It appears now that Henry “Big Boy” Sr Jr. transferred 35,367,989 SM shares which were previously directly registered in his name to his stock broker account at BDO Securities Corporation. Of the 35,367,989 SM shares transferred to his brokerage account, 30 Million shares went into a corporation that he controls. That transfer had a gross value of around 26.2 Billion Pesos. Of the remaining 5,367,989 SM shares, 4,750,000 were dumped into the open market during the period August 3 to August 28, 2020. And the remaining shares may have been disposed in the early days of September. The massive sell-off may have caused the SM shares to dip to as low as 810 as of September 4, 2020. Is he done selling SM shares? Please take note that as of August 31, 2020, Henry “Big Boy” Sr Jr. still has 9,915,181 SM shares in his brokerage account. That would be equivalent t...

Cemex Holdings Philippines Inc. ( CHP ) in a press release has disclosed that it had reached an agreement to amend its debt covenant with BDO. The debt agreement amendment was meant to defer the compliance of certain financial covenants until June 30, 2021. It could be surmised from that disclosure that had the financial covenants not been amended CHP may have not complied that certain covenant. The COVID-19 pandemic may have worsen its operating and financial performance making it difficult to stay with the financial covenant with BDO. The stock rights offering at 1.54 per share have raised additional capital of 12.8 Billion Pesos to CHP but 7.9 Billion of the new capital raised were used to pay the parent CEMEX. It can be noted from CHP’s latest presentation that no additional funding from CEMEX was highlighted. Despite all the negatives, CHP has seen gradual rise. With the fundamentals so bad – negative free cash flows of 1.9 Billion Pesos and debt covenant amendme...