Global Chart Talk: July 2014

Thursday, July 31, 2014

8990 HLDG (HOUSE)

8990 HLDG

NOTES:

Major resistance PhP8.78

Major support PhP5.80

Currently ranging

Buyers > Sellers

Forming descending triangle

Breakout point (BO Pole) PhP7.48

BO retest July 2, 2014

Current price PhP7.90

Highest target price PhP10.85

Buy near PhP7.80

Rating

COL - Buy
Reuters - Buy
Financial Times - Buy
Wall Street Journal - Buy

FREE STOCK REPORT! Stock in Focus: 8990 Holdings (HOUSE)

Sunday, July 27, 2014

ABS-CBN Corporation (ABS)

2016 Presidential election is the only catalyst that will make this stock reach its highest price.

Saturday, July 26, 2014

Metro Pacific Investments Corporation (MPI)

NOTES:

Main trend: Bullish
Would buy near on support

Latest News

Connector-road project requires Swiss challenge

We write with respect to the attached news article entitled “Connector-road project requires Swiss challenge” published in the July 23, 2014 issue of the BusinessMirror. The article reported in part that:

“THE Department of Justice has rejected the creation of a joint venture between Metro Pacific Investments Corp. (MPIC) and state-owned Philippine National Construction Corp. (PNCC) to build an P18-billion road-connector project aimed at linking the North and the South Expressways in Luzon, ordering the deal to undergo a competitive challenge.

In a 41-page opinion, Justice Secretary Leila M. de Lima said the approval given by the National Economic and Development Authority (Neda) Board for the creation of a joint venture between the government-owned firm and the Pangilinan-controlled toll-road operator appeared to have been ‘issued beyond its powers, and without factual basis or justification.’ She said the proposal, which was first submitted as an unsolicited offer, should have not been converted into another mode of implementation.”

Metro Pacific Tollways Development Corporation (MPTDC) has not received any formal communication from the Toll Regulatory Board nor any government agency on the matter. The creation of the joint venture between Metro Pacific Investments Corporation and the Philippine National Construction Corporation was recommended and approved by the National Economic Development Authority. However, MPTDC is amenable to reverting to its original proposal, which will subject its proposed Connector Road project to a Swiss Challenge, as originally contemplated.

We trust that this clarifies the matter. (source: PSE)

Friday, July 25, 2014

Ayala Land Inc (ALI)

Latest news (source: COL)

Ayala Land Inc:continued build-up of recurring business

Sales slowdown not materializing. ALI management said that take-up sales in 2Q14 remained

robust despite market expectations of a slowdown. While the company did not give specific

figures, it said 2Q14 sales were stronger than the previous quarter wherein they sold Php21.3 Bil worth of units despite launching just Php12 Bil worth of new inventory. The company added that although sales may not be growing as fast as they did in 2009-2012 given the higher base that ALI now has, the company still expects sales to grow modestly over the short term.

Eyeing 50% of income from recurring business. Ayala Land is on track to reach its targets of

doubling retail GLA, tripling office GLA, and quadrupling number of hotel rooms by 2014. This

includes inventory under construction and those that are up for launch this year (See Exhibits

1, 2, and 3). ALI’s expansion will go beyond 2014 as it targets to increase the net income

contribution of its recurring business segments – malls, hotels and resorts, offices, and services – from 36% in FY13 to 50% in the medium term.

Taking a small piece of the retail pie. ALI already has an exposure to the consumer sector

through its malls but its exposure will increase through its various joint ventures. Recall that ALI has partnered with Specialty Stores Inc. for the development of its Wellworth department store and also partnered with Puregold for a new mid-income supermarket brand. ALI also has a stake in the convenience store chain FamilyMart in the Philippines. These products are not only meant to complete ALI’s offerings in each of its mixed-use developments but will also give the company a piece of the retail pie and thus further boost its recurring income base over the long term. ALI plans to have 15 Wellworth stores and 500 FamilyMart stores in five years. ALI has not disclosed plans for its JV with Puregold.

Reiterate BUY on ALI. We reiterate our BUY rating on ALI with a FV estimate of Php36.08. We

like ALI as it continues to grow in all segments of the property sector. It is the most diversified in terms of product offerings and also the most diversified in terms of geographical presence. This puts ALI in the best position to capitalize on opportunities in the market. With over Php100 Bil in unbooked revenues, earnings visibility is high and with land bank of more than 8,400 hectares spread out in 31 growth centers around the nation, long term growth potential is intact.