RLC down 7.15% on first day of MECQ; Strong enough to weather the storm
The market sell-off on the first day of the re-imposition of the Modified Enhanced Community Quarantine (MECQ) had Robinson Land Corporation down by 7.15% the most on that day with a volume of 3,110,220 above the 65 day average volume of 2,573,380 that made us wonder if RLC was in danger. As of the end of Q1 2020, RLC had a cash balance of 6.3 Billion Pesos while total debts falling due before the year 2020 ends is at 11 Billion Pesos. With limited cash flows due to the COVID-19 pandemic shutdown, this looks worrisome. But this is where the quality of of the Board and the top management comes in. You got to have experienced bankers in the Board and in the top management. On July 17, 2020 RLC quickly raised 13.2 Billion Pesos of mostly 3-Year fixed-rate bonds. Proceeds of the bond issuance will be used to finance RLC’s capital expenditures and repay short-term loans maturing within the year. The pandemic quarantine restrictions did not completely shut down RLC’s cash flo...