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Investment Sector: Equities Submitted by Financeguru 
10 months ago Tags: PLDT PHI Philippine Long Distance Telephone Company Philippine Stock Exchange Add Tag |
The Philippine Long Distance Telephone Company is the leading supplier of domestic and international telecommunications services in the Philippines. Listed on the Philippine Stock Exchange and with ADRs listed on the New York Stock Exchange (NYSE: PHI) and the Pacific Exchange, Manila-based PLDT is actively pursuing a convergence strategy through its three principal business groups - Fixed Line; Wireless; and Information and Communications Technology (through e-PLDT).
Philippine Long Distance Telephone Company (PLDT) shares has delared an up of 13% increase in core net income during the first 9 months of 2007. The previous year's Php23.2 billion rose to Php26.2 billion, claiming a hefty profit in the market despite the appreciation of the peso. Had the peso to dollar value been stable throughout the year, revenues would have grown much further. This upward trend is expected to skyrocket this year as the group's consolidated balance sheet continues to strengthen.
Last January, PLDT announced its new program to buy back up to 2 million shares in a bid to protect shareholder's values, and boost the actual stock's value as well.“The plan is to reacquire the shares on an opportunistic basis, direct from the open market through the trading facilities of the PSE and/or the NYSE,” the company said in a press release last January 30 2008 published at the Manila Times, referring to the Philippine Stock Exchange and the New York Stock Exchange, where the telecom company’s shares are listed as American Depositary Receipts. PLDT said that the share buyback program reflects the company’s commitment to capital management as an important element in enhancing shareholder value.
PLDT remains to be the biggest in market value among all Philippine companies prompting many investors to seek stock bargains. After a four day slide earlier this month, PLDT recovered by Php65.00 or 2.3%. PLDT belongs to the roster of advancer companies, as opposed to the decliners who outnumbered them 44 to 41.
PLDT might secure its place in the stock market this year, granting it endures the erratic performance of the Philippine Stock Exchange in general. The previous year's favorable results and the move to buy-back shares somehow brings us, FinanceGurus, to contemplate on an eventual increase in demand and stock value. Though the Philippine market remains unpredictable, the worse case scenario for a PLDT share holder is losing by an average of Php50.00 and quickly regaining it in the next couple of days hovering above a very slight profit margin. But even that, by all means, would seem to be a worthwhile investment.
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