Six companies suspended for reporting violations
The PSE [link] suspended trading for six companies on Thursday morning for the continued failure to submit annual financial reports as is required by the PSE’s Listing and Disclosure Rules.
The PSE suspended Phoenix Petroleum [PNX suspended], DFNN [DFNN suspended], TKC Metals [T suspended], Manila Jockey Club [MJC suspended], MJC Investments [MJIC suspended], and IPM Holdings [IPM suspended].
The suspensions will remain in force until audited FY22 reports are submitted to the PSE.
Companies that are suspended for failing to submit annual reports will have three months to correct the problem before the PSE is forced to initiate delisting procedures as per Section 17.8(a)(3) of the Listing and Disclosure Rules.
MB BOTTOM-LINE
In my world, administrative trading suspensions are pretty close to being an unforgivable sin.
The primary benefit to owning stock in a publicly-listed company, as a shareholder, is the shareholder’s ability to use the market to quickly and cheaply convert that holding to cash, and it has always bothered me how casually some companies treat their shareholders by way of their willingness to be suspended for something as pedestrian as filing an annual report.
PNX might be in absolute chaos behind the scenes, and I have sympathy for the accountants and back-of-house staff that are trying to hold that mess together with cello tape, but the truth is that it’s the shareholders who suffer when the stock is suspended, not the management team or the owners of the company.
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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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