Stock thoughts: PXP, ROX

PXP

PXP disclosed the sale of PERC shares to RCBC:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-1723_PXP.pdf

PERC shares are sold to RCBC clients on a slight discount to market. If “clients” view PERC as short term, then we can expect profit taking should the power plant go to commercial operations in August.

 

ROX

A strategic investor may buy 20% of ROX:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-1724_ROX.pdf

The funds to be raised will be used for plant modernization.

ROX’s strategy is good for shareholders:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-1693_ROX.pdf

Investing toward efficiency rather than on expansion would increase ROX’s profit margins allowing their products to be price competitive against imports.

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