MARKET HEADLINE: SHORT SELLING BY OCTOBER

ISM Communications Corp.
#1
Business Profile:

ISM Communications Corporation (“ISM”) is a listed Philippine telecommunications holding company. After its reorganization in June 2002, it has trained its sights on outstanding opportunities in the deregulated telecommunications and the information technology sectors.

ISM is majority-owned and controlled by a group led by its Chairman of the Board, Mr. Roberto V. Ongpin, and composed of PhilWeb Corporation, the Ashmore Group plc funds as well as other strategic partners.

In July 2005, ISM acquired a substantial stake in Eastern Telecommunications Philippines, Inc. (“Eastern Communications”), the oldest existing telecommunications provider in the Philippines with a particular focus in providing voice, data and internet services. Since then, ISM has since increased its stake in Eastern Communications to a controlling super-majority. Under ISM’s management and control, Eastern Communications executed a dramatic financial turnaround. Having been in the red for six years running, Eastern Communications returned to profitability in just 18 months after ISM’s takeover.

In January 2010, ISM and PhilWeb Corporation equally invested in purchasing a 65% stake in Acentic Gmbh, an international market leader in the provision of hotel in-room entertainment systems and services.

True to its mandate, ISM is constantly analyzing other opportunities, and is equipped with the financial resources to make significant investments in the robust telecoms and IT industries.

Source: http://www.ismcomm.com/
Results of Operation for the First Three Months of 2011 and 2010

On December 30, 2010, ISMCC sold its 100% equity interest in AGNP to Vega. Since AGNP owns 40% ETPI, the transaction led to ISMCC losing its 40% equity interest in ETPI. Consequently, ISMCC's shareholdings has been reduced to 37.69% from 77.69% of the total outstanding shares of ETPI of prior year. In view thereof, AGNP and ETPI 2010 financial statements were deconsolidated in the Group's financial statements beginning December 2010.

Total Operating Expenses for the first three months of 2011 was P 2.5 million.

Other Income (net of other expenses) was P 5.7 million. This is mainly composed of interest income from money market placement and loans from FDTL, partially offset by interest cost on borrowings.

Net income for the first three months of 2011 was P 3.2 million. There was no minority share of the income for the year due to deconsolidation.


ISMCC's net income for the same period in 2010, before deducting the share of the non-controlling interest, was P 96,591.

Source: Q12011 Financial Report
Partial Results of ASM last May 25, 2011:

During the same meeting, the Company's management was authorized by the shareholders present (representing more than 2/3 of the Company's outstanding capital stock) to deal with the Company's remaining 37.7% equity in Eastern Telecommunications Philippines, Inc. and the Company's 32.5% interest in Acentic GmbH as management sees fit (including the possible sale of either or both stakes at such terms and conditions as the Executive Committee of the Board of Directors of the Company would deem beneficial for the Company).

http://www.pse.com.ph/html/disclosure/pd...77_ISM.pdf

Ongpin bloc forays into banking, sets eye on PBCom

A group led by former Trade Minister Roberto V. Ongpin seeks to gain a foothold in the banking business by acquiring a controlling stake in medium-sized lender Philippine Bank of Communications.

Investors’ deadline for their submission of buyout offers has been extended to June 15 from May 31.

Industry sources said Ongpin’s group, which recently sold a substantial stake in Express Telecommunications Philippines Inc., was keen on acquiring a banking franchise and could offer a sweeter deal compared with other banks.

The 64-branch PBCom is seen to attract new entrants like Ongpin rather than existing players who may not be willing to pay as much just to acquire additional branches. The Bangko Sentral ng Pilipinas, after all, is expected to liberalize branching limits within the next three years.

A source said that for a new player like Ongpin, PBCom’s existing banking franchise and niche middle-market Chinese client base could prove to be valuable.

Publicly listed ISM Communications is likely to be Ongpin’s vehicle in its foray into the banking industry because the company still has no major business although it does have idle cash from the sale of its substantial stake in Eastern Telecommunications Philippines Inc., the source said.

Ongpin is also part of the group that holds a controlling stake in San Miguel Corp.

But another source said neither SMC nor its banking arm, Bank of Commerce, was interested in acquiring PBCom.

Aside from San Miguel, Ongpin’s group has interests in real-estate development (Alphaland Corp.), mining (Atok Big Wedge Co. Inc.), information technology and gaming (Philweb Corp.) and oil refinery (Petron Corp.).

http://business.inquirer.net/3350/ongpin...e-on-pbcom
Clarification on the above news article from PBCom:


We confirm that ISM Communications Corporation is one of the parties interested in PBCom. As previously confirmed with the PSE, there are on-going talks with various third party investors interested in investing in the Bank. Deadline for submission of proposals is on 15 June 2011. However, we have no knowledge as to whether any of the prospective investors had initiated talks with PDIC regarding their prospective investment in PBCom.

http://www.pse.com.ph/html/disclosure/pd...06_PBC.pdf



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#2
Clarification of ISM regarding PBCom:

In this regard, we wish to confirm that the Company is interested in acquiring a controlling stake in PBC. We also wish to emphasize that the talks for the proposed acquisition of a controlling interest in PBC are still preliminary and exploratory. Nothing definitive has been agreed upon.
http://www.pse.com.ph/html/disclosure/pd...26_ISM.pdf
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#3
With the company showing interest to buy PBCom, ISM managed to close at green at 4.08 after hitting 4.16 days high. Still very possible to go up near 4.40 or 4.46 before consolidating in th e days to come at the 4 peso level, as talks regarding takeover is still prelimanry and exploratory...Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#4
Lightbulb 
ISM closed at 3.97... the needed correction we are anticipating. It may consolidate for now at the range of 370-403 within 10 days as as the 32 day moving average need to catch up on the current price levels. Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#5
Biz Buzz: PBCom frontrunner

The staggered liberalization of branch restrictions in the Philippines doesn’t mean that the wave of banking mergers and acquisitions will diminish.

In fact, it seems that Philippine Bank of Communications now has a better shot at getting a new investor.

Aside from ISM Communications, which is led by former Trade Minister Roberto V. Ongpin, some non-banking groups have expressed interest in the bank.

Potential white knights have until Wednesday to submit a firm offer.

If at all, the liberalization of branching has made existing franchises like that of PBCom’s more attractive, in turn boosting chances of this new round of auction succeeding as non-banks can compensate for lukewarm interest from other banking peers.

And RVO’s group is widely believed to be the frontrunner in this race.—Doris C. Dumlao

http://business.inquirer.net/4267/biz-bu...rontrunner
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#6
PBCom mum on bidders for 67% stake

THE PHILIPPINE Bank of Communications (PBCom) was mum on who submitted bids to buy a controlling stake in the midsized bank after the deadline for offers closed on Wednesday.

In a disclosure to the stock exchange yesterday, the bank merely said, “various offers to invest in PBCom were submitted to...Macquarie Capital Advisers...”

Australia-based Macquarie is PBCom’s financial adviser for the sale of the 67% stake.

Raul C. Diaz, PBCom first vice-president, in a text message told BusinessWorld that all proposals were “still subject to Macquarie’s evaluation and analysis.”

Macquarie, he said, would submit its recommendation to the bank and its major stakeholders after it completed its evaluation.

Macquarie’s recommendation, PBCom also said in the disclosure, was “subject to the final approval of the Bangko Sentral ng Pilipinas and the Philippine Deposit Insurance Corp.

PBCom shares jumped by 1.45% to P70 apiece yesterday.

The bank was selling the 67% stake in compliance with the conditions of a P7.6-billion financial aid extended by the Philippine Deposit Insurance Corp. in 2004. It had started the process as early as February 2009, choosing Macquarie as financial adviser.

PBCom wanted to sell the 67% stake for a minimum of P25 per share or for a floor price of P4.3 billion.

Mr. Diaz had told BusinessWorld previously the bank wanted to name the new investor within the month.

Ongpin-led ISM Communications Corp. and Security Bank Corp. said they were interested in PBCom while the Bank of Commerce and Banco de Oro Unibank, Inc. said they were not.

PBCom booked a net income of P71.080 million in the first quarter, nearly double the P36.045 million in the same period last year. -- Ann Rozainne R. Gregorio

http://www.bworld.com.ph/content.php?sec...e&id=33272
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#7
It is now half way thrugh on the possible 10 days consolidation. 4k shares slipped to 3.61 balance from the shares dumped at 3.70.
If we will have this range 3.70-4.03 in the next remaining days, the result of the bidding can make this go either way...Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#8
boss bords, what do you think
<-----HuhHuh or RolleyesRolleyes ---->
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#9
(06-18-2011, 09:26 AM)sigma Wrote: boss bords, what do you think
<-----HuhHuh or RolleyesRolleyes ---->

Still within the range>>> congrats to those who bought 380 below and sold 4 and above today..Nok sagot mo sa Friday ha... Buyback is within the range Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#10
Sure Boss. ako na bahala sa Friday. aep 3.79, sold at 4. Iba talaga early Bords strategy. Thanks a lot. Big Grin Big Grin
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