TEL, EG
TEL: ROE-5 = 39.86, PE(TTM) = 10.98
EG: ROE-5 = - , PE(TTM) = -
ePLDT, a company owned by PLDT(TEL), sold its 75% stake in the operator of the Netopia Internet cafes to IF E-Game Ventures Inc. (EG). ePLDT's serviced revenue decreases by 1% to 7.9 billion from January to Septermber this year.
In my opinion, the moved was a win-win for both parties. ePLDT can now focus its resources on its core business which is more profitable while the Netopia Internet franchise will complement EG's business. IP E-Game Ventures Inc. (EG) is engage primarily in the business of interactive gaming and content distribution.
click here for the complete news in BusinessWorld
MEG
MEG: ROE-5 = 9.31, PE(TTM) = 12.32
Megaworld Group which is composed of Megaworld Corporation (MEG), Empire East Land Holdings, Inc.(ELI), and Suntrust Home Developers, Inc.(SUN) through its associate, Suntrust Properties Inc., is planning to build and sell 18, 673 residential units with total floor area of 830,000 sq.m. next year(2011).
This is apart from the projects that are expected to be completed next year. MEG will complete its office and retail spaces for BPO (call centers) at McKinley Hill, Newport City, Iloilo and Cebu City. ELI launched 5 new projects in Metro Manila and Laguna.
Megaworld Groups' plan is in-line with the expected rise in the real estate business. Also, the increasing buying power of the OFWs and expats going to the Philippines for cheaper living plus the booming business process outsourcing will further increase the demand for office and residential space.
click here for the complete news in BusinessWorld
click here for the complete news in Inquirer
MER
MER: ROE-5 = 11.19, PE(TTM) = 23.71
Manila Electric Company will issue Php5 billion worth of fixed-rate notes to pay its debt and other requirements(capital expenditures). Last month, MER also issued another Php4.8 billion notes also for paying its debt. The company has earlier announced that their planning to build up to 1,500 MW of capacity that will comprise both of peaking an baseload powerplants.
Looking at the last quarter's debt to equity(DE) ratio of 35, this shows that MER has more room for leveraging. the Php5 billion plus the Php 4.8 billion will increase its DE ratio to 43.7 which is still low compared to standard of 100. Their plans to engage in power generation caught my attention since the demand of Power in the Philippines is fast growing and this might increase the value of the said stocks. I'll post a valuation of the said company in the very near future.
click here for the complete news in ABS-CBN
click here for the complete new in Manila Bulletin
PERC
PERC: ROE-5 = 9.97, PE(TTM) = 15.00
PetroEnergy Resouces Corp. (PERC) is planning to build the 20MW geothermal power plant in Mt. Makiling. The geothermal plant will development will be undertake by the Maibarara Geothermal Inc.and will spend around Php100 million for the exploration. PERC, whose business includes providing services to companies exploring oil in the Philippines and Gabon, Africa, have started to involve in power generation business since Sept last year. The new development will entitled the company to tax perks (7 year income tax free) as stated in the Renewable Act of 2008.
PERC is another rising player in the growing arena of Power and Energy sector. Though past performance of the said company is not spectacular, I will sure follow this in the future should potential for growth in value materialized.
click here for the complete new in Inquirer
Legend:
ROE-5- is the 5 year average Return of Equity.
PE (TTM)- is the price to earnings ratio of the stocks based on the earnings in the most recent trailing twelve months(TTM) while price is base on previous days closing price.
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