My mom and dad flew in for the Holy Week and Jack’s graduation. As with family gatherings, I knew it was going to be both fun and hectic.
Thurs Apr 21 – My dad wanted to go to SM Mall of Asia but it turned out to be closed. So we just went to the bayside and mingled with the crowd waiting for a cenaculo. We had dinner at Dad and Mom’s Family Restaurant. It was overflowing with seafood. So much for abstinence. But it sure tasted great!
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Better heard than read.
Somehow Facebook has become what Friendster was. And worse. So I finally shut down my account. And I mean finally. I did a trial exit a week or two back just to see how it works. Somehow, my account was reactivated when I accidentally logged in. So I purposely mangled my password and deactivated my account again. Now I’ll have to forgot password before I can get logged in. Safe enough.
I was lying in bed, watching an episode of How I Met Your Mother on the iPhone, when Jeanne walk to the edge of the bed chewing something. I asked her “What are you eating? Come on, show daddy.” She looked at me, walked back to Michelle at the living room, and came back with a peanut which she gave to me.
I read that the upcoming SMC offering has a new price range of P110 to P140 per share. Lower than the P150 per share before the trade suspension and much lower than its peak of about P180 per share. Comparing it with some back-of-napkin figures to similar diversified/diversifying conglomerates:
| Price | EPS | P/E | Return (E/P) | |
| SMC | 110 | 6.14 | 17.92 | 5.58% |
| SMC | 140 | 6.14 | 22.80 | 4.39% |
| SMC | 153 | 6.14 | 24.92 | 4.01% |
| SMC | 180 | 6.14 | 29.32 | 3.41% |
| AC | 17.01 | 5.88% | ||
| JGS (’09) | 19.28 | 5.19% | ||
| AGI (’09) | 23.77 | 4.21% | ||
| AEV (’09) | 26.97 | 3.71% | ||
| MPI | 27.03 | 3.70% |
JGS, AGI, and AEV will probably have a lower P/E and higher return for 2010 due to higher earnings. While MPI is just expensive at this point. In any case, this seems to show that the quoted price range imputes a significant risk premium. I can think of the ongoing SMC ownership issue. I guess if the government gets ownership, they can screw up profitability :P Anyway, it seems to me the premium is too high and results in a comparatively low/cheap price. Hmmmm, should I buy up?
UPDATE: Looks like everyone bought up. Shares got gobbled up before you can say “gook”. What do you expect? SMC is a well-established company with good management, profitable existing businesses, and forays into promising new businesses as part of its expansion and diversification. Wishing for a piece of that pie.