Aboitiz Group and VITA, Stock Thoughts: MED

Aboitiz Group and VITA

Have you noticed how Pilmico was allotted a lot of cash?

Sale of Pilmico’s Citysavings interest:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-2496_UBP.pdf

Pilmico has 40% interest in Citysavings bank therefore cash raised in this transaction is approximately P2.28 billion. Pilmico’s cost in the bank’s interest is only P544 million suggesting a onetime gain of P1.7 billion.

(source: AEV SEC form 17A 2011, p.31, http://www.pse.com.ph/resource/corpt/2012/AEV_17A_Dec2011.pdf)

 

AEV allots 1.3 billion for Pilmico:

http://www.bworldonline.com/content.php?section=Corporate&title=Conglomerate-eyes-threefold-spending-hike&id=67722

It has been rumoured that Pilmico will take position in VITA.

How much should be the buying price of VITA? I don’t know but for certain it’s not below P1.

More here:

https://fundamentalenthusiast.wordpress.com/2013/02/25/playing-with-vitas-par/

 

Downside of this speculation:

Although there is an obvious synergy between VITA and Pilmico should the buy-in occur, VITA has P2 billion debt for Pilmico to take over.

 

MED

I hate backdoor rumors, no amount of due diligence will allow an investor to take advantage of the price movement unless one has an insider information.

As usual, the company itself doesn’t know the reason of the price surge:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-2489_MED.pdf

These situations are worth watching in the sidelines for us to learn but not to monetize. lol

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