Showing posts with label Stock Watch. Show all posts
Showing posts with label Stock Watch. Show all posts

Friday, 24 June 2016

Why You Should Consider Investing in Double Dragon Preferred Shares

07:09:00
Property developer Double Dragon Properties Inc., a joint venture of Injap Sia II of Mang Inasal and Tony Tan Caktiong of Jollibee, has recently started an offering of up to 10 Billion Pesos worth of preferred shares, with an annual dividend rate of 6.4778%


While news has it that the offering is already oversubscribed (with 26 Billion Pesos worth of demand), the offering will go on until April 7, 2016. As to how the underwriters will handle the distribution of shares (whether first come first serve, raffle or partial allocation), I still need to check the prospectus (or wait for further announcement).
Lead underwriters are BPI Capital and RCBC Capital, while co-lead managers are Abacus Capital and Investment Corp., BDO Capital Corp., PNB Capital Corp., UCPB Group, and Unicaptial Inc. Co-managers are AB Capital and ATR Kim Eng/Maybank Philippines Group. So if you're interested, you may contact any of the firms mentioned.

The preferred shares are offered at 100 Pesos each. Minimum investment is 50,000 Pesos, with increment of 10,000 Pesos thereafter.

So what makes this preferred shares special? Once purchased, you have the option to convert it to Double Dragon common shares (DD) at a rate of one preffered share to one common share at anytime starting from the second anniversary up to the fifth anniversary of the issuance. This means that aside from receiving the annual 6.4778% dividend, if the stock price of DD goes above 100 (e.g., 120), you have the option to sell it and instantly earn 20% from your investment. If the price of DD doesn't go up to 100, no need to worry since you can still receive the guaranteed dividend.

Based on yesterday's close, Double Dragon is trading at 38.15 Pesos per share. For it to reach 100 Pesos, it needs to gain 162% in 2 years. Sounds impossible? Do you know that when DD was first listed in the Philippine Stock Exchange last April 7, 2014, the IPO price was 2 Pesos per share only? You read it right. That's 1807% gain in just 2 years! :)

For those looking for long term investment with a decent dividend rate, this is definitely something you can consider.
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Blue Chips Recovery: Which Stocks have the Highest Potential Upside Based on Their Previous Highs?

07:08:00
In a recovering market, whether from a bear market or market crash, blue chips or index stocks are usually the first to bounce back. So what I did is to gather data for the PSEi stocks with the aim of identifying which among them are the worst hit this year. I also determined their potential upside based on their prices during PSEi's previous highs in 2015, 52-week high, and 2015 closing price. 

For the PSEi previous highs, I selected the following dates as reference:
10-Apr-2015 -- On this date, PSEi reached its highest level for 2015 (8127.48 points).
27-Oct-2015 -- On this date, PSEi reached its highest level after the 24-Aug-2015 sell-off (7325.76 points)

Please note that for the YTD, the 22-Jan-2016 closing price was used in the computation. 

The computation for the potential upside values were based on the following:
Upside 1 -- 29-Dec-2015 and 22-Jan-2016 closing price
Upside 2 -- 27-Oct-2015 and 22-Jan-2016 closing price
Upside 3 -- 10-Apr-2015 and 22-Jan-2016 closing price
Upside 4 -- 52-Wk High and 22-Jan-2016 closing price



I tried to get the Top 5 stocks based on their potential upside values. 2 stocks always made the list: MEG and BLOOM.

Want a copy of the xls?  Just drop me a message. :)


Disclaimer:
The analysis posted is for informational purposes only and should not be taken as a recommendation to buy or sell a particular stock.

IPO Watch: Crown Asia Chemicals Corporation (CROWN) - Things You Need to Know

07:07:00
The Initial Public Offering of Crown Asia Chemicals Corporation (CROWN) will start this Friday, April 10, 2015. If you plan to invest in this IPO, but still haven't gone through the prospectus, I hope the information below can help you. Btw, Crown Asia Chemicals' main products are PVC pipes and compounds, it is not related to Crown Asia property development corporation. 


Company Name: Crown Asia Chemicals Corporation 
Stock Symbol: CROWN
Offer Price: Php 1.41 per share
Minimum Order (shares): 1,000
Maximum Order (shares): 17,000
Payment Method: Check payable to "Crown Asia IPO"
Total No. of Shares to be Issued: 158,000,000
No. of Shares Available available in Local Small Investor's Program (LSIP): 15,800,000 common shares
Issue Manager and Underwriter: Abacus Capital and Investment Corporation

Offer Period (in Metro Manila): April 10-16, 2015 (up to 12:00 noon only on the last day)
Offer Period (outside Metro Manila): April 10-15, 2015 (up to 12:00 noon only on the last day)
Receiving Centers (in Metro Manila):

    Philippine Stock Exchange (Ayala)
    27/F, PSE Plaza, Ayala Triangle, Ayala Ave., Makati City
    Authorized Receiving Agent: Professional Stock Transfer, Inc.
    Contact Person: Edelyn Jimeno / Hilda Amion
    Contact No: (0917) 817-0337
    Philippine Stock Exchange (Tektite)
    2/F, PSE Centre,Exchange Road, Ortigas Center, Pasig CIty
    Authorized Receiving Agent: Professional Stock Transfer, Inc.
    Contact Person: Salvador Valentos / Honesto Angeles
    Contact No: (0917) 648-7550

    Abacus Capital & Investment Corporation:
    2904A East Tower Philippine Stock Exchange Center
    Excahge Rd., Ortigas Center, Pasig City
    Contact Person: Ralph Jan Jayoma, Elnee Rosalita, Pia Francesca Suganob
    Contact No: (02) 667-8900 locals 2432, 2912 or 2909

    Professional Stock Transfer, Inc.:
    Unit 1003, 10/F City & Land Mega Plaza,
    ADB Garnet Rd., Ortigas Center, Pasig City
    Contact Person: Arlene Geologo
    Contact No: (02) 687-4053, (02) 687-2733

Receiving Centers (in Cebu and Davao):
    Abacus Securities Corporation - Cebu Branch
    5F Innove Bldg., Samar Loop cor. Panay Road, Cebu Business Park, Cebu City
    Contact Person: Vangie Canga
    Contact No: (032) 233-9631

    Abacus Securities Corporation - Davao Branch
    Door 31-B, GB Cam Building,
    Monteverde St., Davao City
    Contact Person: Claire Matugas
    Contact No: (082) 224-0970

Requirements: 

  • Application to subscribe/purchase form
  • Specimen Signature Card
  • Clear photocopy of any two (2) valid and current government-issued identification (passport, drivers license, SSS, GSIS, or PRC)
  • Check payable to "Crown Asia IPO" (dated as of the date of the submission of the Application and crossed for deposit)
  • Personal appearance is required

Purpose of IPO:
  • construction of Polypropylene Random Copolymer Type 3 (“PP-R”) and High-Density Polyethylene (“HDPE”) manufacturing plant and warehouse, and purchase of equipment
  • debt retirement
  • modernization of existing compounds and pipes plants
  • working capital purposes

About the Company
Former Name: Crown Asia Compounders Corporation
Incorporation Date: February 10, 1989
Registered Business Address: Km.33 MacArthur Highway, Bo. Tuktukan, Guiguinto, Bulacan, Philippines

Business Nature: Manufacturing, importing, exporting, buying, selling or otherwise dealing in, at wholesale and retail such goods as plastic and/or synthetic resins and compounds and other allied or related products/goods of same/similar nature, and any and all equipment, materials supplies used or employed in or related to the manufacture of such products.

At present, the Company is primarily engaged in the production of plastic compounds and other related products such as polyvinyl chloride (“PVC”) pellets. The Company also manufactures plastic pipes. The compounds and pipes are used directly and indirectly in the construction and telecommunications industries.

The Company is better known for Crown pipes brand for electrical, sanitary, potable water, and telecommunications applications. The Company also sells its plastic compounds to manufacturers of wires and cables, IC tubes, films and sheets, bottles, among others. For the past three years, the Company sold 58.06% of its compounds to the local market and the balance to the export market. On the other hand, the Company sells its pipe products purely to the local market.

Competitive Strengths:
The Company’s competitive strengths include the following:
  • Established Track Record Resulting in Long-Term Customer Relationships;
  • Quality Products;
  • Unique Product Offerings; and
  • Established Operational Policies, Systems, and Procedures.

Business Plan:
The Company’s short-term business plans include the following:
  • Continuous Improvements in and Modernization of Plant, Equipment, and Facilities
  • Increase Pipe Product Lines;
  • Increase Market Reach;
  • Research and Development;
  • Improvement of Business Processes and Sourcing of Raw Materials; and
  • Control Costs and Operating Expenses.

Risks relating to the Company and its Business:
  • Competition in the Compounds Business (D&L Industries, Inc., Tosoh Polyvin Corporation, and Elastobest Manufacturing Corporation)
  • Competition in the Pipes Business (Neltex Development Company, Inc., Moldex Products, Inc., Atlanta Industries, Inc., and Emerald Vinyl Corporation)
  • Raw Material Cost and Availability
  • Operating or Process Failures and Quality Assurance
  • Labor Matters
  • Power Shortages
  • Implementation of Business Plans and Strategies
  • Centralized Facilities Location
  • Imitation or Infringement of the Company’s Intellectual Property Rights
  • Dependence on Members of Executive Committee
  • Related Party Transactions
  • Interests of Primary Stockholders may differ from Interests of other Stockholders

Total Assets (as of 2014): Php 829.05M
Total Liabilities (as of 2014): Php 266.15M
Total Equity (as of 2014): Php 562.90M

Book Value (2014): Php 1.19 per share
Book Value (after IPO): Php 1.22 per share 

Earnings per Share: Php 0.1383
P/E Ratio (based on 2014 earnings): 10.20
Net Profit Margin (2014): 7.69%
Return on Assets (2014): 7.89% 
Return on Equity (2014): 11.61% 

So, are you participating in the IPO? I wish you luck, whether it's for IPO play only or for medium- to long-term investment. :)

COL Corporate Day: Rising Stars (Growth Companies to Watch Out For)

07:06:00
Yesterday, I attended an investor briefing sponsored by COL Financial. It's like a mini-roadshow of up and coming growth companies that are listed in the PSE. Some of them have products that are easily recognizeable by the public, while some really needed the roadshow to introduce what their company does. Nonetheless, it was a good experience since it gave me more idea of the stocks that I'm buying (specially SSI and Xurpas), and also learned about the growth prospects of the said companies. 



CNPF (Century Pacific Food, Inc.)
Yes, this is the popular tuna brand. Aside from the Century brand, they also carry 555, Blue Bay, Argentina,  Swift, Angel and Birch Tree. It is worth noting that their products are being sold in the US as well as in the middle east. To add, there's still a lot of areas where they can explore for sales internationally. They just need to market their tuna and make the health benefits known to the public to gain more following. Their new TV ad was also shown, encouraging the public to replace one meal with tuna, for a healthier you. :P

Although the growth potential and plan is good, I might pass on this one.


HOUSE (8990 Holdings, Inc.)
I needed this roadshow to know more about HOUSE. In fact, their CEO, JJ Atencio, also thought of the same thing. :P Their company is involved in developing affordable homes. I learned that they have 2 foreign investors, one coming from Malaysia and one from the US, each owning 8% of the company. They're also teaming up with PAG-IBIG to hasten the processing of loans. JJ mentioned that their partners have been convincing them to bring their act to other countries also that might need their expertise in affordable housing. However, at the moment, it is not yet in their plans since there are still a lot of areas in the Philippines that can be developed.

I am still partial on investing on this stock.


IMI (Integrated Micro-Electronics, Inc.)
Whenever I read about IMI, the first thing that goes to my mind is semiconductors. Yes, that's true, but aside from semiconductors, they're also involved in research and development, with the aim of becoming a part of people's daily lives. Although it's a Filipino company, it already has offices in many countries (USA, Singapore, Japan, to name a few). They also handle the 4G network in China.

An interesting video they showed demonstrates their share in the smart car of the future (which according to them, will be available in a not so distant future). The video ended by showing a car parking by itself (similar to that in the new Ford Focus).

IMI has a lot promise and potential. I'll include this in my stocks watchlist.


SSI (SSI Group, Inc.)
Most probably, you're familiar with brands such as Marks and Spencer, Hermes, Kate Spade, Michael Kors, Lacoste, Aeropostale and Old Navy. Well, these are only a few of the Store Specialists Inc.'s brand portfolio. They also own Family Mart. SSI is the first company from the Rustan's group to go public. For the past few years, sales have been rising and store footprint has been increasing. Whenever you see a new mall being developed, most likely, SSI already has a spot there. According to their President, Anthony Huang, new stores are still on the way, some of which will be opened in 2016. There are also 5 international brands that they are talking to currently, so that's something to look forward to.

With more Filipinos having more disposable income, sales of their brands continue to grow. The arrival of competition such as Uniqlo and H&M didn't have much effect on SSI, in fact, it appears that they have driven up SSI's sales too.

I currently have SSI on my portfolio and what I heard was reassuring. I'll hold on to my shares at the moment. :P


Xurpas (Xurpas, Inc.)
Last but not the least is Xurpas, the stock that gave me almost 100% gain during its IPO. Ever heard of pinoyexchange? It was founded by Xurpas' President and CEO, Nix Nolledo. Nix started his talk by showing their makeshift office when they were still starting. He also boasted that they never needed to make a loan for their business (except until the IPO). He showed mobile contents/products that are being utilized by Globe Telecoms. He also introduced Storm, a company that they acquired recently.

In the age of internet and mobile computing, companies such as Xurpas offer unlimited possibilities. According to Nix, you don't look at 10% or 20% gain. Instead, you should look at 100% or 200% gain. Juanis Barredo also asked if there's a possiblity that Xurpas will acquire another company in the next 1 to 2 years. Nix's reply was, "1 to 2 years is too long". It appears that Xurpas is aggressive in acquiring more companies, which will help drive its growth further.

Again, it was a reassuring talk. I'll hold on to Gav's Xurpas shares then. I have so much faith in Xurpas that Gav Fund only has Xurpas shares at the moment. :p
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