finance articles analysis

7/25/2019 Finance Articles ANALYSIS

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Rabadon, Vennyse B. AC517 4:30- 6:00pm Mr.

Darlon B. eren!o

Finance Articles: Analysis

Article: Merger of SM property units eyed

"e# me de$ne $rs# mer%er, !# !s #&e 'omb!na#!on o( #)o or more

$rms #o (orm a s!n%le $rm, #&a# !s a''ord!n% #o o*r boo+. # !s also s#a#ed

#&ere #&e reasons or #&e (a'#ors )&y $rms )o*ld l!+e #o mer%e. n*mera#ed

!n #&e boo+s are 6 reasons, #&ese are, syner%!es, #a 'ons!dera#!ons,

p*r'&ase o( asse#s belo) #&e!r repla'emen# 'os#, d!/ers!$'a#!on, mana%ers

personal n'en#!/es and #&e brea+*p /al*e. Amon% #&ese reasons, )o*ld

l!+e #o po!n# o*# #&e #a 'ons!dera#!ons.

A''ord!n% #o #&e ar#!'le

SM prime recently reported a 16-percent growth in its 2012 net proft to

10.53 billion on the bac o! re"en#es !rom new and e$isting malls incl#ding

those in mainland china. %he company said it e$ceeded the mainland china.&

n o*r boo+, #&e reason )&y #a 'ons!dera#!ons be'ame a (a'#or)&e#&er yo* s&o*ld a'2*!re a 'ompany !s #&a# )&en yo* are a pro$#able $rm

and yo* )!ll a'2*!re a $rm )!#& lar%e a''*m*la#ed #a losses, #&ese losses

'o*ld #&en be #*rned !n#o !mmed!a#e #a sa/!n%s ra#&er #&an 'arr!ed (or)ard

and *sed !n #&e (*#*rea%e 663. &e s!#*a#!on !s 'on#rad!'#!n% #&e par# o(

'ons!der!n% #&e #aes, as )&a# #&e ar#!'le sa!d MDC and M r!me are

p*bl!'ly l!s#ed 'ompan!es and par# o( #&e 'o*n#rys ben'&mar+ &!l!pp!ne

#o'+ '&an%e !nde and #&e!r !n'ome !s e/en %ro)!n% *n#!l no).

o, !( m par# o( #&e M %ro*p )!ll no# 'onsol!da#e M De/elop!n%

Corp. and M r!me old!n%s !n#o a s!n%le p*bl!'ly l!s#ed en#!#y and &*%e!n'ome means &*%e #aes.

Article: Victorias Milling plans diversication


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D!/ers!$'a#!on s#r!/es #o smoo#& o*# *nsys#ema#!' r!s+ e/en#s !na por#(ol!o so #&a# #&e pos!#!/e per(orman'e o( some !n/es#men#s)!ll ne*#ral!8e #&e ne%a#!/e per(orman'e o( o#&ers. V!'#or!a M!ll!n% plans #od!/ers!(y #&ey )an# #o e#end #&e!r b*s!ness a'#!/!#!es by !n/es#!n%. n a'513,

!# )as d!s'*ssed #&a# #&e por#(ol!os #o#al r!s+ 'an be d!/!ded !n#o #)o par#s,d!/ers!$able r!s+ and mar+e# r!s+. D!/ers!$able r!s+s 'an be el!m!na#ed byadd!n% s#o'+sa%e 197, #&ere(ore !n/es# !n o#&er b*s!ness a'#!/!#!es.D!/ers!$'a#!on !s red*'!n% #&e 'ompanys r!s+, d!/ers!(y!n% !n#o sa(er $ed!n'ome asse# may red*'ed r!s+ and ma!m!8e re#*rn.

# !s be##er (or #&e 'ompany #o !n/es# !n o#&er b*s!ness a'#!/!#!es!n order #o pro#e'# #&e!r 'ap!#al, by allo'a#!n% money #o d!eren# !n/es#men#s./e made some resear'&ed re%ard!n% d!/ers!$'a#!on, !# says &elps pro#e'#yo*r 'ap!#al (rom #&e )!ld s)!n%s o( #&e mar+e#, )&!le a'&!e/!n% lon%-#erm%ro)#& a# #&e same #!me, also d!/ers!$'a#!on !s no# a %*aran#ee #&a# yo* )!ll

al)ays ma+e money b*# !# !s #o m!n!m!8e losses #&ere(ore !# !s #o s#ab!l!8eearn!n%s. Compan!es need #o s#ab!l!8e #&e!r earn!n%s be'a*se /ola#!leearn!n%s pay more #aes #&an s#able 'ompan!es do. #ab!l!8a#!on o( earn!n%s!s 'er#a!nly bene$'!al #o employees, s*ppl!ers and '*s#omers b*# !#s /al*e !sless 'er#a!n (rom #&e s#and po!n# o( #&e s#o'+&olders a%e 663. ( am #&eo)ner o( #&e 'ompany )o*ld l!+e also #o d!/ers!(y #&e b*s!ness.

Article: SMC redeems $259! M in converti"le "onds

Con/er#!ble se'*r!#!es are bonds or pre(erred s#o'+s #&a# *nder

spe'!$ed #erms and 'ond!#!ons 'an be e'&an%ed (or 'ommon s#o'+ a# #&e

op#!on o( #&e &older. &e MC redeemed #&e ;


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more a##ra'#!/e #o #&e prospe'#!/e !n/es#ors. B*# #&!n+ !# )as a %ood #*rn

#&a# MC redeemed #&e ;


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#o !n'rease re/en*es, #&e!r /al*es, and o#&er #&!n%s )&!'& /e already

men#!oned (rom #&e $rs# ar#!'le. &ere are also #ypes o( mer%ers #&e

&or!8on#al, /er#!'al, 'on%ener!' and 'on%lomera#e. n #&e ar#!'le !# )as s#a#ed

#&a# Metroban was in the best position to capt#re loans growth gi"en its

loan-to-deposit ratio o! 6/ percent( the lowest among the gro#p.& # !s

a##ra'#!/e #o #&ose b*s!nesses )&!'& are pro$#able !n order (or #&em #o &a/e

lo)er #aes.

Article: A'S closes to renancing deal

?or me #o *nders#and more abo*# #&e ar#!'le sear'&ed onl!ne #&emean!n% o( re$nan'!n% !# !s #o s)ap o*# yo*r old loan )!#& a more (a/orableloan. &e ne) loan pays o #&e old loan, so yo* =*s# ma+e paymen#s on #&ene)er pres*mably be##er loan. ome#!mes a borro)er )!ll borro) a l!##lee#ra d*r!n% re$nan'!n% #o #a+e some e2*!#y o*# o( an asse# +no)n as 'as&o*# re$nan'!n%.

ith the potential e$pansion o! o#r s#ccess!#l Masinloc !acility(we see an opport#nity to contrib#te to economic growth( while garneringbetter b#siness prospects thro#gh m#t#ally benefcial partnerships withtr#sted local bans(& orrocs added.

A, !s s*''ess(*l #&ro*%& re$nan'!n%, Andy orro'+s sa!d #&a#re$nan'!n% &elped #&em e#end #&e a/era%e deb# l!(e, lo)er #&e !n#eres#epense and amend 'o/enan# #o !n'rease $nan'!al >e!b!l!#y. As )&a# /e

learned !n '&ap#er 3 abo*# ra#!o analys!s re%ard!n% #&e !mes-n#eres#-arnedRa#!o, !# !s #&e ra#!o o( earn!n%s be(ore !n#eres# and #aes B #o !n#eres#'&ar%es a meas*re o( #&e $rms ab!l!#y #o mee# !#s ann*al !n#eres# paymen#s.o, #&e lo)er #&e !n#eres# ra#es #&e %rea#er #&e , !# !s s!%n!$'an# #o a'ompany be'a*se #&e (a!l*re #o pay !n#eres# )!ll br!n% le%al a'#!on by #&e$rms 'red!#ors and probably )o*ld res*l# !n ban+r*p#'y. &!s $rm !s ee'#!/e!n mana%!n% #&e!r deb#. #&!n+ !# !s a really %rea# s#ra#e%y be'a*se e/en #&e!ra'2*!s!#!ons, 'ap!#al !n/es#men#s and opera#!onal !mpro/emen# are /erys*''ess(*l.

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