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ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph

DIVIDENDS:

SAN MIGUEL BREWERY, INC. [pse: SMB]


Disc. No. 2011-3511
Dividend Amount : php0.14 per share
Ex-Dividend Date : 20 May 2011
Record Date : 25 May 2011
Payment Date : 13 June 2011
Note: This is the company's second dividend declaration and payment for the current year, bringing the year-to-date dividend
payments to php0.28 per share. The first dividend was disclosed and announced last March 11, 2011 and paid out last month, April 11.

EARNINGS:

GLOBE TELECOM, INC. [pse: GLO]


Disc. No. 2011-3499 FIRST QUARTER RESULTS
Sustained growth momentum in the mobile business coupled with equally strong results from the fixed line and broadband segments
pushed the Company's Q1 service revenue to a record at php16.5 billion, 8.0% more than the same period last year. The mobile
business generated php13.1 billion, an increase of 4.0% year-on-year. Its revenue contribution however narrowed slightly to 79.4%
from 82.2%. The broadband and fixed-line segments registered 26% expansion in sales, increasing its contribution to 20.6% of the
service revenue pie. Even on a quarter-on-quarter basis, the numbers also show improvements, reversing the usual slower Q1 growth.
LONG-TERM BUY

RIZAL COMMERCIAL BANKING CORPORATION [pse: RCB]


Disc. No. 2011-3534 2011 FIRST QUARTER RESULTS
The Bank posted a 5% increase in its bottom-line to php1.02 billion in the first three months of the year vis-a-vis the same period last
year. An 18.4% growth in “Other Operating Income” pushed the line higher even as Net Interest Income was flat at php2.6 billion. Trust
fees expanded 20%, trading gains by 32% and other fees and
commissions by 3%. The Bank stayed healthy with a CAR of
18.65% and Tier 1 ratio of 13.60%, both comfortably above
regulatory minimums. Return-on-Average-Equity (annualized)
remained a strong 13.11%. Moving forward, the Bank will
continue to focus on its core businesses in consumer, SME,
microfinance and cash management services.

The presence of a buy, or near buy signal across a number of


technical indicators, alongside the price's sustained, albeit
marginal rise above the 10pdEMA lends confidence of at the very
least a momentum push north, towards a possible test of the
php29.20 resistance line. On the other hand, the positive Q1
numbers, sustaining the performance last year, adds validity to
the current support level at php25.20. Unless the Bank comes
across a stiff challenge, or the macros of the domestic economy
take a turn for the worse, the prospects remain positive for the
bank and its stock. Although volume turnover has been up and
down in the last four sessions, RSI(14) shows a build-up of
positive momentum as STO(14,3,3) manages to sustain its break
of the trigger line to a third session. The MACD(12,26,9) is just
about to make its own break of the signal line, preparing to move
into positive territory. A pull-back to a reaction low, (ideally
above the php25.20-25.50 range) opens the buying window with
a potential short-term run. BUY

UNIVERSAL ROBINA CORPORATION [pse: URC]


Disc. No. 2011-3500 FISCAL YEAR FIRST HALF RESULTS
The Gokongwei-food unit posted a pre-tax core net income of php4.026 billion for the first six months of fiscal year ending March 2011.
This is -10.8% lower than the result over the same period last year. Consolidated Net Income (unaudited) reached php3.285 billion, a
substantial 28% drop year-on-year. Lower bond and equity investment values and lower operating income despite higher sales dragged
the bottom-line. Nevertheless, the Company's balance sheet remained strong with a net gearing ratio of 0.37x and a php6.6 billion cash
position.

URC share price has met strong resistance at the php38.30-38.40 and the php39.00 levels. The underlying technical measures fail to
give a definitive signal either way, with prospects of a relatively flat, range bound movement up ahead. HOLD.

PRESS RELEASES:

NICKEL ASIA CORPORATION [pse: NIKL]


Disc. No. 2011-3549 SUMITOMO METAL MINING'S EQUITY PARTICIPATION
The Company announces that Sumitomo Metal Mining Co., Ltd. (SMM) is expected to take an equity participating interest in the
Cordillera Exploration Co., Inc. (CEXCI), a subsidiary which NIKL acquired from Anglo American Exploration Philippines last November
2010, following the latter's exit from the Philippines. The Participation and Shareholders' Agreement provides for an

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 1 of 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph

investment of US$1.5 million by SMM in CEXCI, equivalent to a 25% equity. There is also an option for SMM to increase
its position in CEXCI to 40%, if and when the initial funds have been fully utilized. The amount raised will be used to fund
exploration works on CEXCI's gold and copper properties in the Central Cordillera and North Luzon regions, including the Manmanok
property in Apayao.

SMM holds an 18.19% stake in NIKL (as of end-March 31, 2011) and is the majority shareholder in Coral Bay, the country's first hydro-
metallurgical nickel processing plant as well as in Taganito HPAL Nickel Corp., a second processing plant currently under construction.
NIKL is the country's largest nickel ore producer and the CEXCI project represents it diversification into other metals and minerals,
particularly gold and copper.

For the first quarter of 2011, the Company saw the estimated value of its nickel ore shipments nearly doubled to php1.97 billion from
php996 million in the comparative quarter a year ago. Volume of nickel ore shipped by wet metric tons increased 8% to 1.4 million in
the January to March period. These were sourced primarily from the Rio Tuba and Taganito mines. Shipments from the two other sites,
Hinatuan and Cagdianao, will commence this month. The estimated realized price applicable to 1.0 mWMT in Q1 2011 was higher at
$11.61 per pound versus the $8.64 per pound last year. The 34.38% increase in the dollar price was tempered, however by the 4.8%
appreciation of the average peso-dollar translation over the
comparative quarters. (In peso terms, based on comparative
year-on-year average exchange rates, the applicable amounts
rose to php508.48 per pound from php397.68, or +27.86%.

The Company is yet to release its full financial statements for Q1


2011. However, last year, net income almost quintupled to
php1.48 billion from 2009's “paltry” php302.9 million, pushing
per share earnings to php1.10 from php0.32. The figures are
even modest if the foreign exchange translations are not netted
out. Sans the impact of the stronger local currency, full year net
income would've reached php1.79 billion or php1.34 per share.

NIKL share price has trended higher in the last three sessions,
bouncing off a major support line represented by the 150pdEMA
at php21.0686. At yesterday's trades, it briefly pierced, but failed
to sustain the break, above the 10pdEMA at php22.2464, closing
at php22.20. The stock continues to hold modest strength
(RSI[14] @ 53-55) coupled with an almost neutral, albeit biased
towards a slow accumulation, Acc-Dist Line. STO(14,3,3) has
narrowed the negative gap with a potential upside break of the
trigger line moving forward. The MACD, however, is still
negatively slanted at a very minimal slope. Finally, although
trading pace, as indicated by volume turnover, has picked up in
the three sessions, it remains less than 1.0 million shares, thus
depriving the stock of a solid support to sustain a northern trek.
Immediate support and resistance bands are at php20.50-21.20
and php22.80-23.60, respectively. This provides a potential
maximum margin of between 7.5% and 15%. Medium-term action
possible. ACCUMULATE

CORPORATE DEVELOPMENTS:

TRANS-ASIA OIL AND ENERGY DEVELOPMENT CORPORATION [pse: TA]


Disc. No. 2011-3529 BHP BILITON ON SC NO. 55
Otto Energy Limited [asx: OEL] simultaneously disclosed to the
ASX Limited (see link below), that BHP Biliton has exercised the
option, granted it was granted last January 2010, to farm-in to
SC No. 55 in offshore Palawan. This will result in the latter
assuming a 60% participating interest in the block as well as
operatorship. The exercise of the option will reimburse Otto's
past costs and fund one offshore deepwater well by next year.
An option to drill a second well in a subsequent phase by 2013 is
likewise provided for. Otto will retain a 33.18% stake. OEL is the
parent company of NorAsian Energy Ltd, TA's sole partner and
operator of the said block. This transaction remains subject for
the approval of the Philippine Department of Energy.

TA shares bounced off a recent low at php1.18, although failing


to break through the 150pdEMA resistqnce of php1.26, settling at
yesterday's session php0.03 below the line. Except for the
AccDist Line which remains negatively biased, momentum
indicators point to possible short-term upside, possibly resulting
from the above development. A break out from the php1.26
mark may prove to be the BUY signal for a quick pop for
investors. With the well to be drilled next year yet, and a
possible second well in 2013, there is a time-delay in the revenue

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 2 of 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph

stream, warning of a possible short-lived run to take advantage of the news/disclosure. The proposition is risky, although such risks are
limited, from a techinical standpoint with price managing to keep to a narrow band. TRADING BUY

further reference:
http://www.ottoenergy.com/IRM/Company/ShowPage.aspx?CPID=1579&EID=69840217&PageName=Farmin%20Option%20Exercised%20in%20Service%20Contract%2055

BASIC ENERGY CORPORATION [pse: BSC]


Disc. No. 2011-3516 SETTLEMENT AGREEMENT WITH FORUM ENERGY PLC.
The Company and Forum Energy Plc. have reached a settlement of a dispute relating to the former's share in historical cost recoveries
pursuant to an SPA both parties executed on April 2006 covering SC Nos. 14A and 14B as well as other issues relating to SC Nos. 14C
and other blocks of SC 14 and SC 6. Under the terms of the Settlement Agreement, BSC will receive from FEP US$650k and cause the
transfer of Forum Energy Philippines Corporation (FEPC) participating interest in the SC's mentioned above plus 50% of the attached
recoverable costs. FEPC is a wholly-owned subsidiary of Forum Energy. At the completion of the conditions and terms of the
Agreement, BSC will end up with 50% of FEPC's minority interests in Galoc (SCA4C-1, 1.13875%), Nido (SC14A, 4.234%), Matinloc
(SC14B, 6.203%) and North Matinloc (SC14B-1, 9.7315%) and in certain other blocks of SC 14 and 6 currently being explored.
NEUTRAL, NO ACTION

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 3 of 3

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