The International Monetary Fund said last week that it had reached a staff-level agreement with Malawi for up to $88.3 million in emergency financing, as the southern African country struggles with acute forex shortages.
Reserve Bank of India has released a list of 34 forex brokers; which has been declared illegal
List of unauthorized forex trading apps and websites - RBI
Friends, recently the Reserve Bank of India has released a list of 34 forex brokers; which has been declared illegal. https://preview.redd.it/dc1l0ca388o91.jpg?width=637&format=pjpg&auto=webp&s=1a865302fede2fd22985b27c767481ecb4219204 Before releasing this list, RBI had done all checks regarding all transactions of all those forex brokers since February this year. Maybe this doesn't matter to you; Nevertheless, you should definitely check this list once. So see if your forex broker is not on this list! 👉 Here's a full list of unauthorized forex trading apps and websites
Alpari
AnyFX
Ava Trade
Binomo
e Toro
Exness
Expert Option
FBS
FinFxPro
Forex.com
Forex4money
Foxorex
FTMO
FVP Trade
FXPrimus
FXStreet
FXCm
FxNice
FXTM
HotFores
ibell Markets
IC Markets
iFOREX
IG Markets
IQ Option
NTS Forex Trading
Octa FX
Olymp Trade
TD Ameritrade
TP Global FX
Trade Sight FX
Urban Forex
Xm
XTB
Thanks for Reading. Please share your take on this.
DITO posts P11B Q3 loss (P6B on forex alone) (T:Nov15)
Happy Tuesday, Barkada --
The PSE gained 68 points to 6355 ▲1.1%
Thanks to Spyfrat's Call for the meme appreciation, and to Jing for the trauma bonding over our unmet DDMPR expectations. There is a lot of reading for me to do on the quarterly earnings reports, and I will definitely be taking a deeper dive on a few stocks (like MONDE) over the coming days. Let me know if there are any stocks that you'd like to see covered and I'll see what I can do! Shout-outs to rethon-ji, John, Stephen Chiong, Makisig Tan, Pao, Jonathan Burac, Just’n, LanAustria, CubicTrade, Palaboy Trader, mArQo, arkitrader, Lance Nazal, Grumpy Trader, Chip Sillesa, Dividend Pinoy | PGG, Rolex Jodieres, leaf, and Jing for the retweets, and to Padilla GJ, Genesis Umali, Evolves.co and Mike Ting for the FB shares!
[Q3] DITO forex losses climb to ₱6-B in Q3... DITO CME [DITO 2.81 ▼2.09%] [link] reported Q3 profit down 88% y/y, and down 28% q/q, to a net loss of ₱11 billion. DITO’s 9M profit is down 174% y/y to a net loss of ₱26 billion, driven largely by the degrading value of the Philippine Peso relative to the US Dollar, and the unrealized foreign exchange losses that DITO has accumulated on its huge outstanding dollar-denominated debts. DITO noted ₱2.9 billion in unrealized forex losses in Q1, ₱4.4 billion in Q2, and now another ₱6 billion in Q3, for a total of ₱13.3 billion since the start of the year. DITO said that it had 13.1 million subscribers at the end of Q3 (up 36% from Q2), and that they generated an average revenue per user (ARPU) of ₱77.3 per month. The ARPU figure is down 4.6% from DITO’s H1/22 ARPU of ₱81/month. DITO’s current ratio (current assets / current liabilities) at the end of Q3 was 0.02. For reference, DITO’s competitors, Globe [GLO 2212.00 ▼3.83%] and SMART [TEL 1544.00 ▲0.92%] have current ratios that bounce between 0.33 and 0.45.
MB:In the management discussion and analysis section of the financial statements, DITO’s management says that “despite its reported capital deficiency, management is confident that [DITO] can continue as a going concern as management believes that [DITO’s] ability to continue as a going concern is dependent upon its ability to generate sufficient cash flows to meet its maturing obligations.” It’s kind of a weird wording. Maybe I’m being too picky, but it feels like DITO’s management is not explicitly stating that they believe they will generate enough cash flow to meet maturing obligations, only that they believe that DITO’s ability to avoid bankruptcy will depend on its ability to do that. It’s true that their subscriber count is growing quite quickly, but the amount of revenue that they’re getting from each of those subscribers is low and going lower over time. Sure, GLO’s ARPU was only about ₱80/month for 88 million subscribers, and TEL’s ARPU was about ₱106/month for 68 million subscribers. And those are fully mature businesses that have already built out their initial networks. The point is that it’s not like DITO just has to survive for a few more years before it passes through some magical barrier where costs fall dramatically and profits start to skyrocket. Once the initial build-out is done, it’s still going to need to have a significant yearly budget for capex to keep pace and keep growing. It’s low-cost strategy is going to keep its ARPU low, which will suppress revenues. That debt isn’t going anywhere. And while Udenna and China have “committed” to infuse additional capital into Dito Tel, Dennis Uy’s companies are bleeding out the ears, so it’s not like there’s a cash cow in the group that can serve as a gold farm for Udenna’s portion of that commitment.
[Q3] Twenty companies now seeking a Q3 earnings report deadline extension... The list of companies that are seeking deadline extensions from the PSE exploded in size yesterday, as the PSE’s deadline for submission of Q3 earnings reports came and went. There are now 20 companies that are unable to comply with the PSE’s reporting requirements, up from just eight the day before. COL Financial [COL 3.17 unch] (still consolidating) and CTS Global [CTS 0.86 ▼1.15%] (more time to finalize and get approvals) started the request fest last week, followed by National Reinsurance [NRCP 0.64 ▼1.54%] (still reviewing and finalizing), LBC Express [LBC 16.10 unch] (still reviewing data), TKC Metals [T 0.51 ▼1.92%] (still finalizing financial statements), STI Education [STI 0.32 ▼1.54%] (skeleton administrative crews hit by dengue and COVID outbreaks), Benguet Corp [BC 4.05 ▼3.57%] (still writing management’s discussion section), and Haus Talk [HTI 0.83 ▼2.35%] (still finalization and consolidating). Then, yesterday, we saw applications filed by SOCResources [SOC 0.47 unch] (still finalizing), ATN Holdings [ATN 0.36 unch] (accounting department needs time), Cirtek [TECH 2.46 ▲0.41%] (still reviewing data), Vantage Equities [V 0.73 unch] (finalizing data and getting signatures), Manila Bulletin [MB 0.39 ▲4.00%] (still reviewing data and getting signatures), Alsons Consolidated [ACR 0.79 ▲1.28%] (still finalizing and getting approvals), Transpacific Broadband Group [T 0.51 ▼1.92%]BGI (accountant needs more time), Central Azucarera de Tarlac [CAT 9.50 unch] (still reviewing data), Steniel Manufacturing [STN suspended] (needs more time), AgriNurture [ANI 7.69 ▼0.26%] (still reviewing data), Greenergy [GREEN 1.63 ▼0.61%] (still reviewing data), and Manila Mining [MA 0.01 unch] (communication problems with Surigao del Norte). All of the companies committed to submitting proper financial reports on or before November 21.
MB:Delays happen because life is unpredictable and chaotic, and any accountant (or person married to an accountant) will tell you that preparation and consolidation of financial statements is something that is difficult to rush. You can’t just wander down into the harshly-lit, under-decorated accounting department and say things like “WORK HARDER!” There is only so much time you can make up with additional overtime hours or temp workers. So, on some level, I am understanding when things come up and conspire to make for a delay. As a default though, as an investor, I start by looking at a request for an extension as a failure of process. A failure to schedule the resources needed to do the things that you need to do, in the timeframe that you need to do them. Sometimes a delay is because there’s been a huge transaction (like an acquisition or sale) close to the reporting deadline, but that kind of event is usually pretty obvious and is something that we all know can’t be solved by “process” alone. That said, the vast majority of the “reasons” given to justify an extension here boil down to some tautological version of “we need more time to finish the reports because the reports aren’t finished yet.” Only STI seemed to provide a detailed outline of the circumstances that conspired to cause its delay, in such a way that could allow an investor to gain comfort that the management team seems to understand the problem well enough to prevent it from happening in the future.
[NOTES] Quick takes from around the market...
MREIT [MREIT 11.90 ▼0.50%] [link] MREIT declared a Q3/22 dividend of ₱0.2444, payable on December 15 to shareholders of record as of November 25. The dividend has an annualized yield of 8.22% based on the previous closing price, which is -0.97% smaller than Q3's pre-dividend annualized yield of 8.3%. Relative to MREIT's IPO price, the dividend increased MREIT's total stock and dividend return to -18.55%, up from its pre-dividend total return of -20.06%.
MB Quick Take:C-c-c-combo breaker! While it’s only a slight step back, the lower div breaks MREIT’s streak of dividend increases that started back in Q1 of this year. MREIT’s net income was down almost 7% q/q, and shareholders still aren’t getting the benefit of the dividend-increasing property-for-share swap that MREIT and Megaworld [MEG 2.12 ▲2.91%] negotiated in April; the transaction is on-hold, awaiting approval from the SEC.
Phoenix Petroleum [PNX 8.49 unch] [link] Q3 profit ▼1051% y/y (▼761% q/q) to a net loss of ₱0.95 billion. 9M profit ▼734% y/y to net loss of ₱1.1 billion. PNX said that its liquified natural gas trading business was the “bright spot” in its portfolio, increasing 11% q/q with strong demand in both Viet Nam and the Philippines. Otherwise, PNX said that the “exceedingly challenging macroeconomic backdrop” of volatile oil markets, inflation, peso weakness, higher interest rates, and lower demand, caused its domestic fuel volume to “sharply drop” (-44%) and its overseas trading desk to “take a breather” (-35%).
MB Quick Take:PNX is just a gasoline reseller, so it lives and dies by demand for gas and its ability to monetize access to that gas. Unfortunately for PNX, the price of gas increased dramatically during the year, and demand for that gas has dropped off a cliff. That’s a terrible combination for a business that relies on volume and site visits to keep revenues cycling and keep stations profitable. Sentiment seems to be that oil prices are headed for $100/barrel again soon, and that “upside” risk is growing, so it doesn’t look like this part of the equation will turn in PNX’s favor any time soon.
MB is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the newsletter, or follow me on Twitter. You can also read my daily Morning Halo-halo content on Philstar.com in the Stock Commentary section, and in the Saturday edition of the Daily Manila Shimbun.
I dont defend this douche guy, he deserve it for being an @sshole. Tapi ada yang punya kronologi jelasnya dia sebenarnya ngapain sebagai affliator binomo? Gua cari di berita isinya di luar konteks dan isinya "diduga" dan ga jelasin kronologi urutannya sampe urusan pacarnya segala. Ada yang bilang dia sebagai affliator meraup uang loss pemainnya. Gua ga ngerti soal app binomo tapi apa itu hasil loss bisa connect ke "kantong" dia? Apa dia jadi agen perantara ketiga macam judi bola? Does binomo even legal? I mean its legal in India. Dan konsepnya nyambung ke forex kan? Gua cuman pengen tahu aja ginian, bahkan telegram grup mayoritas kalangan "investor" begitu kan disangka tempat chat teroris dulu kan dan terus disuruh uninstall. I have trust issues because massive of propraganda we are facing rn.
FILRT Q3 dividend dud confirms lowest yield on PSE (Th:Nov17)
Happy Thursday, Barkada --
The PSE lost 27 points to 6392 ▼0.4%
A huge thank-you to Terence Uygongco, MB's newest Starbucks Coffee Crew Patreon patron! Your generous support is very much appreciated! I'm truly humbled by the 32 readers that have signed up to contribute monthly. Thanks also to Eric1990, Jupitel Thunder, Rommel O, SpyfratsCall, Rolex Jodieres, UsedTableSalt, grinsken, and Reynaldo Taningco, for the reactions and discussion about my write-up on PREIT, the newest Villar REIT, to Dividend Pinoy | PGG for the meme love, and to Atot and Lito who were surprised to learn that MB isn't put out by a team of writers. I mean, I'm looking to hire a biz journo, so if you know anyone who's looking... :) Shout-outs to Bien EC, Stephen Chiong, Palaboy Trader, mArQo, Corgi Buttowski, Just’n, Lance Nazal, Dividend Pinoy | PGG, Albert Bigornia, Chip Sillesa, leaf, arkitrader, Rolex Jodieres, and Jing for the retweets, and to Khene Rae Paranga, Evolves.co, Froilan Ramos, and Mike Ting for the FB share!
[Q3] CTS Global’s brutal Q3 saved by unspent IPO proceeds... CTS Global [CTS 0.90 ▲4.65%] [link], the proprietary trading firm owned by Edward Lee and run by his son, Lawrence Lee, posted a Q3 profit of ₱21 million, which was up 1,413% y/y, but down over 28% from its Q2 profit of ₱29 million. CTS reported that it lost ₱20.2 million in Q3 trading, and blamed this on the volatility in the international and domestic markets. CTS’s Q3 profit was driven largely by unrealized forex gains of ₱48.2 million, and by the ₱14.6 million in interest that it earned by buying peso-denominated government securities with the majority of the proceeds it took from investors during its IPO.
MB:CTS is a loose collection of traders, trtrained in using CTS's own proprietary trading system (we’ll call that the “CTS PTS”), but what they’re actually doing with that money we don’t really know. We only get to see the result of their cumulative efforts in the financial statements, and try to understand the strengths and weaknesses of the CTS PTS through the discussion that management provides to justify those results. So what is the takeaway for investors? Should we assume that the CTS PTS is best at turning a profit when the markets are all going up? Is the CTS PTS ineffective in a down or sideways market? CTS pivoted to Indonesia to catch some of that tech IPO lightning, but now that we’re in a “tech winter” and the easy money is gone, what is CTS’s plan for making money for the short term while rates are still rising, and the medium term where rates are elevated and tech growth is stalled? That’s what I want their management to talk about. I don’t want to hear about what the market is doing. We all know markets have been trash YTD. Rates were up. Volume is weak. Yeah, we are all dealing with that. We’re all trying to make money in the markets under the same circumstances. I just want a more clearly stated strategy from the group, but maybe that’s just me.
[Q3] Filinvest REIT declares another dud dividend... Filinvest REIT [FILRT 5.72 unch] [link] FILRT declared a Q3/22 dividend of ₱0.088, payable on December 20 to shareholders of record as of December 1. The dividend has an annualized yield of 6.15% based on the previous closing price, which is exactly the same as its pre-dividend yield because FILRT’s Q3 div is the same as its Q2 div. Relative to FILRT's IPO price, the dividend increased FILRT's total stock and dividend return to -9.31%, up from its pre-dividend total return of -10.57%. FILRT also announced that its board had voted to approve the acquisition of three parcels of land in Boracay from its ultimate parent company, Filinvest Development Corporation [FDC 6.49 ▲1.41%], for ₱1.05 billion in cash. FILRT is a subsidiary of Filinvest Land [FLI 0.82 ▼1.20%], which is itself a subsidiary of FDC. Despite being referred to as a “flagship commercial REIT of the Filinvest group” in the press release, FILRT is the group’s only REIT, and neither FDC nor FLI have revealed plans to list additional REITs.
MB:Well there it is. That sudden dividend implosion that we saw in Q2, and that the market seemed to ignore, has just been repeated. We are now in a “fool me twice” situation here. In this competitive fixed-income environment, there’s no room for dividends that shareholders can’t rely on. The “backward looking” yield (last 4 dividends) after this dividend is around 7%, which is already low, but the “forward looking” yield (Q3 div * 4) is only 6.15%. Before the dividend stream dried up, FILRT’s yield traded somewhere above its higher-class peers (RL Commercial REIT [RCR 5.25 ▲0.96%] and MREIT [MREIT 11.88 ▼0.17%]) and below DDMP [DDMPR 1.30 unch]. The REIT landscape has changed since then, but if we consider RCR’s 7.49% to be the lower bound, and DDMPR’s 8.39% to be the upper bound, that would make FILRT’s forward yield somewhere in the neighborhood of 8.00%. And that’s before the uncertainty that FILRT smeared all over the income stream by suddenly dropping it without explanation. To get FILRT’s forward yield to 8.00%, the price would need to drop to ₱4.40/share (23% lower). I was thinking that maybe FILRT was holding back on dividends to conserve cash in anticipation of this purchase, but they ended Q3 with over ₱2.2 billion in cash. Even if they’d maintained their Q1 dividend rate through Q2 and Q3, they’d still have over ₱2 billion in cash to make this ₱1 billion purchase. Maybe the simplest answer is the best answer: maybe the dividend just sucks?
[NOTES] Quick takes from around the market...
Bangko Sentral ng Pilipinas (BSP) [link] will meet today to implement the 75 basis point interest rate increase that Mr. Medalla, the BSP Governor, signaled would occur at this meeting. That increase matches the US Federal Reserve’s interest rate raise back at the start of the month.
MB Quick Take:While I think the raise is already “baked-in” (meaning, that the impact of the rate increase on stock and REIT prices has probably already been factored in by traders), there’s always the chance for the BSP’s sentiment around the raise to make news and move prices. Recent US data allowed the US Fed to start talking about slowing the rate of its increases, which is a huge change from the tone of its statements after the last raise in early November. Will the BSP also tone it down, or will it use our strong economic performance data as cover to stay the course?
Figaro [FCG 0.61 unch] [link] released its Q1 report just one day after asking for a deadline extension (FCG reports on a non-standard fiscal year that ends June 30). FCG reported Q1 net income of ₱83.4 million, up 36% y/y. Systemwide sales were up 51% to ₱988 million, which FCG attributes to new stores coming online between Q1 last year and this year. Revenues were up 57%, but operating costs were up 63% on “increased overhead costs” in opening so many new stores. For the first time since its IPO, FCG has no loans outstanding.
MB Quick Take:It’s good to see FCG benefitting from its aggressive expansion strategy, as that’s a good sign for FCG and the quick-service food sector as a whole. While FCG still has liabilities (mostly “trade and other payables”), it’s interesting to see that they’ve paid down all their bank debt. Not only does that give them a great deal of flexibility for expansion later, but it allows the company to face the coming year of high rates without having to accommodate a ballooning debt service payment every month.
DoubleDragon [DD 6.98 ▲2.50%] [link] Q3 profit was down 86% y/y (down 13% q/q) to ₱634 million. 9M profit was also down 73% y/y to ₱2.2 billion. DD’s Q3 and 9M revenue and net income data from 2021 were heavily skewed by a ₱6.56 billion unrealized gain from a change in the fair market value of DD’s properties. Looking at “core net income”, which DD defines as excluding that one-off gain and the suppressed tax rate afforded by the CREATE Law, 9M core net income was actually up 120% (₱2.2 billion, up from ₱1.00 billion). DD didn’t do the same core income analysis for its Q3 performance, but it looks like if the one-off gain is removed (and the associated income taxes) that DD’s Q3 profit was up around 50% y/y from around ₱400 million. Rental revenue was ₱63 million higher (+6%), property sales were ₱229 million higher (+52%), and hotel revenues were ₱32 million lower (-22%).
MB Quick Take:This is what happens when a huge one-off benefit just so happens to fall in some random quarter in the previous year: everything that comes after just looks so much worse from a headline perspective. It ruins the Q3 and 9M y/y analysis. And it’s not even like a “high-bar” kind of scenario, either, because it’s not like 2021 was just an exceptional year for fair market property valuation gains. It’s literally just an accounting paper gain. Take all those pesky paper gains away, and you’re left with a core performance that is very healthy from both a Q3 and 9M perspective, way more healthy than those statistical headlines would suggest. DD’s stock is down 38% from its early March peak of ₱11.38/share, but it’s recently up 23% from its 52-week low of ₱5.60 that it set in the first week of November.
MB is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the newsletter, or follow me on Twitter. You can also read my daily Morning Halo-halo content on Philstar.com in the Stock Commentary section, and in the Saturday edition of the Daily Manila Shimbun.
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