Quick Take: ACEN's amendments and 2 more market updates
RL Commercial REIT [RCR 5.91 1.2%; 113% avgVol] [link] RCR declared a Q1/23 dividend of P0.0977, payable on May 31 to shareholders of record as of May 22. The dividend has an annualized yield of 6.61% based on the previous closing price; while is dividend represents a minor increase in the absolute size of the dividend, RCR’s new forward-looking yield is essentially the same. Relative to RCR's IPO price, the dividend increased RCR's total stock and dividend return to 1.56%, up from its pre-dividend total return of 0.04%.
MB Quick Take: RCR likes to be early with its dividend declarations and payments. So early, in fact, that it’s going to pay out Q1/23 on the same day that DDMP [DDMPR 6.72; 111% avgVol] pays out its Q4/22 dividend.
Alternergy [ALTER 1.19 4.8%; 33% avgVol] [link] fell 5% on its first day of trading without a stability fund. ALTER’s stabilization fund, run by BDO Capital, expired over the weekend after exceeding its 30-day lifespan. There will no longer be any artificial demand to prop up ALTER’s price below its IPO price level.
MB Quick Take: From now on, whatever happens to ALTER happens because of the market. The future performance of the stock is in ALTER’s hands, which -- thanks to the 100% primary IPO -- appears to be exactly what ALTER’s founders want.
ACEN [ACEN 6.10 0.7%; 78% avgVol] [link] shareholders approve board measure to amend its articles of incorporation to convert P100 million of its authorized capital stock to 100 million preferred shares. ACEN said that this will give the company an additional funding source.
MB Quick Take: Preferred shares are a great way to raise funds, as they’re far more flexible than bank debt or even bonds. ACEN didn’t provide the terms of the preferred shares, but that’s not surprising as the particulars are more of a product of the times: preferred shares get priced to compete with other debt offerings on the market at the time of the offering, so it wouldn’t make a lot of sense to name the rate now. If the preferred shares sell for the “normal” price of P100/share, that could give ACEN access to up to P10 billion in funding from the sale of preferred shares.
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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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