Quick Take: JLL Philippines on POGOs and 3 more market updates
Globe [GLO 2320.00 0.43%] [link] stock rights offering (SRO) shares will list today. The 10,119,047 new shares from the sell-out SRO will appear in trading accounts this morning and be eligible for trading. The SRO shares were sold at P1,680/share, which is a 28% discount relative to yesterday’s closing price.
MB Quick Take: Unlike some other less-successful SROs, GLO’s SRO sold out in the opening two rounds, and the discount implied by the SRO’s price only increased as GLO’s stock price has increased over 12% since the SRO was announced back in June. I’m going to take a peek today to see if GLO’s volume jumps; if it does, that might mean that SRO buyers were just in it to pocket the quick difference. If it doesn’t, maybe they’re in it for the long-haul.
JLL Philippines (JLL) [link] thinks that macroeconomic headwinds, like the rising cost of borrowing, will have a greater impact on commercial real estate in Metro Manila as compared to what might happen if POGOs are forced to leave, or the hybrid work-from-home work arrangement remains in place for a longer period of time. JLL said that rising fuel costs and material costs will also make new developments more costly.
MB Quick Take: My interpretation of what JLL is trying to say here is that, even if some POGO firms do leave the Metro Manila commercial real estate market, the backfill from BPOs returning to work and the overall lack of new supply due to the pressure on developers from the rising cost of money, land, and supplies will offset the negative impacts of the departing POGOs. This is a more nuanced take than Leechiu’s, which is that commercial lease rates will plummet if POGOs are forced to leave.
Bank of Commerce [BNCOM 8.00] [link] officially received its license to operate as a “universal bank” from the BSP.
MB Quick Take: Going public was part of BNCOM’s application for this universal license. Now that it’s officially a universal bank, BNCOM is able to exercise the powers of an investment house, and make investments outside of its traditional San Miguel ecosystem.
Dominion Holdings [BLFI 3.16] [link] Q3 profit was down 30% y/y. This is the first reporting by the company since the SEC approved its name change (old and busted: BDO Leasing and Finance Inc), voluntarily surrendered its financing license, and changed its corporate purpose from that of a leasing and finance company to that of a holding company.
MB Quick Take: This feels like another one of those weird transformations into a holding company, just for the sake of being a holding company. None of the actions that BLFI has taken make what it plans to do any more clear to shareholders or investors. I also hate that it hasn’t tried to change its ticker symbol, or the logo that is associated with it on the PSE’s website. Those are petty things. Earning 30% less profit is not, however, so I feel like I’m doing BLFI a solid by focusing on its aesthetic problems.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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