Cebu Pacific [CEB 37.15 2.5%; 117% avgVol] [link] will be the subject of an inquiry conducted by a Senate panel looking into an uptick in passenger complaints that were filed against the airline. In particular, CEB is alleged to have overbooked several flights and offloaded passengers without appropriate compensation as a result. There are other complaints for various other well-known practices of the airline that seem to have been amplified by CEB’s slow or ineffectual responses to those complaints.
MB Quick Take: No company wants to be put under the government’s microscope, especially in such a public (and political) setting. It’s not clear how big of a risk these hearings pose to CEB’s business model (and as a result, its profitability), but as we’ve seen in the past, even good-meaning inquiries like this can take on a populist life of their own under the right social and political conditions. Philippine Airlines [PAL 5.46 0.2%; 1% avgVol] isn’t free to point and laugh, as they might also come under some scrutiny by association.
BPI [BPI 105.00 1.0%; 138% avgVol] [link] stock dividend was approved by the SEC. For BPI shareholders of record as of March 29, 2023, BPI will distribute 0.09 BPI shares for every common share of BPI owned. The payment date of this dividend has not yet been communicated to investors.
MB Quick Take: This is a minor issuance of shares, but it’s nice to see the SEC getting some business done to move these things through the system. The shares are coming out of BPI’s treasury.
Max’s Group [MAXS 4.68 1.1%; 64% avgVol] [link] disclosed that its President, Ariel Fermin, has resigned (effective August 31), and that Robert Trota will resume as the President and CEO of MAXS once Mr. Fermin’s retirement takes effect. MAXS’s board said that through Mr. Trota’s leadership, it will be “relying on strengths we have developed and mastered throughout the years.”
MB Quick Take: The outgoing president is not all that old, so it’s not clear to me (as an outsider) whether this is an actual retirement, or a face-saving retirement to allow the MAXS board to re-install a favored leader. Mr. Fermin was with MAXS through some tough years and delivered some impressive results. The “why” of this one just isn’t obvious to me yet. I mean, if Mr. Fermin just wanted out to spend more time living life with friends and family, then I understand that to the core of my being. But if this was initiated at the board level, I’m not sure what’s going on.
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