Quick Take: Bloomberry selloff and 2 more market updates
Millennium Global Holdings [MG 0.11] [link] board voted to rescind over 130 million common shares that were issued to several people in 2010 and 2011, as payment for those people to “assist in facilitating the issuance and the ultimate listing of the shares”. According to MGH, those stockholders failed to “provide the requirements and assistance needed”, despite the “considerable period” of time MGH has given them to perform the assistance. Rescission will cause the 130,315,381 shares to be returned to the company, and will reduce MGH’s outstanding shares by 5.2%.
MB Quick Take: This is kind of an unusual move, but it looks like MGH is trying to clean up its capitalization table before it applies to the SEC for an increase to its authorized capital stock to take on new investments.
Bloomberry [BLOOM 5.97 7.44%] [link] sells-off after news that we’re on China’s tourism “blacklist”. The Enrique Razon-owned casino-resort operator sank 7.4% after Senate President Miguel Zubiri ‘s comments about his conversation with the Chinese Ambassador to the Philippines, where the ambassador said that the Philippines is on a “blacklist of tourist sites”, due to the Chinese government’s reluctance to allow average Chinese tourists to be mistaken for POGO employees or operators, or otherwise be placed in unsafe situations due to the illegal activities done by the gangs that operate POGOs.
MB Quick Take: This one is getting weird. China’s embassy released a statement after Mr. Zubiri’s remarks made news to say that the Philippines is not on any kind of tourism blacklist, and the Chinese ambassador said that tourism is an “important component” of “practical cooperation” between the countries. Sounds like Mr. Zubiri is building towards a preferred narrative. Still, all of the stocks that are dependent on Chinese tourism, like the MB Casino Tourism Index, and Cebu Pacific [CEB 36.80 3.66%], have got to be keeping an eye on this “drama”, even if the unforced errors are hard to watch.
Phoenix Petroleum [PNX 8.80] [link] is reportedly interested in selling its PBA franchise, the “Phoenix Super LPG Fuel Masters”, which Dennis Uy acquired in a deal between PNX and Air21 for P100 million back in 2016. Bilyonaryo said that the Fuel Masters are up for sale, along with the NLEX Road Warriors (owned by Manny V. Pangilinan), and that Cebu Landmasters [CLI 2.38 0.83%] is one of the companies that appears to be interested.
MB Quick Take: If the rumor is true, then it seems like Dennis Uy is trying to trim the fat wherever he can. Maybe owning a PBA franchise is something fun to do when times are “thick”, and a few million here and there don’t really add up to anything existential. But maybe, when times are thin, the questionable marketing benefit that comes from PBA franchise ownership becomes a juice that isn’t worth the squeeze. One thing is for sure, I’d love to see the executive slide deck that CLI put together for its pitch to the board for acquiring a PBA team.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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