Thursday, October 31, 2013

Century Properties inks property deal with Japanese gambling magnate


MANILA—Century Properties Group Inc. confirmed Friday it has signed a property deal with the group of Japanese gaming magnate Kazuo Okada to participate in the latter’s entertainment and gaming hub “Manila Bay Resorts” at Pagcor Entertainment City.


Releasing to the media a disclosure to the Philippine Stock Exchange, Century said it had signed a memorandum of agreement with Eagle I Landholdings Inc. (Eagle I), a Philippine affiliate of Tokyo-listed Universal Entertainment Corp., to develop five hectares of land within the 44-hectare Manila Bay Resorts.


In addition, it said, Century has entered into an investment agreement with Eagle I whereby Century will be issued with 432 million of preferred shares, representing 36 percent of Eagle I’s pro forma capital stock. Eagle 1 is the landowner of the project site.


Century, which is led by the family of businessman Jose Antonio, has committed to develop at its five-hectare site luxury residential and retail properties that will total over 300,000 square meters of gross floor area upon completion.


“Closing of both the memorandum of agreement for the five-hectare site and investment agreement for Eagle 1 shall occur upon satisfaction of legal and regulatory requirements, and neither transaction contemplate Century being involved in any aspect of the gaming operations,” the disclosure said.


“The strategic fit for the five-hectare site within the landmark Manila Bay Resorts is borne out of Century’s long standing track record of 28 years in the Philippine real estate industry,” it added.


The partnership with Okada gives CPG a foothold in Pagcor City as a landlord after limited licenses had earlier been awarded to four proponents. The other licensees in Entertainment City are tycoon Enrique Razon’s Bloomberry Resorts, the Melco Crown Entertainment-Belle Corp. group and Andrew Tan-Genting group partnership which has brought their venture Travellers International Hotel Group to public hands. Only Bloomberry’s Solaire Manila is operational so far.


Okada had long been in search of a local partner partly to address foreign equity limits on land ownership.


Over the last 28 years, Century has developed quality upscale properties, including Essensa East Forbes at Fort Bonifacio Global City (designed by Pei Cobb and Freed) and has brought key international brands such as Trump, Versace, Missoni Home, Yoo inspired by Starck, the Forbes Media Tower, along with its continued collaborations with the best local architects, interior designers and consultants.


Century Properties has 28 projects in various stages of construction in its mixed-used developments in Century City in Makati City, Azure in ParaƱaque City, Acqua in Mandaluyong City, Commonwealth by Century in Quezon City, Canyon Ranch in Carmona, Cavite.


The Antonios came into the picture after talks between Okada and the Gokongwei-led Robinsons Land Corp. on a gaming partnership were aborted. This was at the height of the investigation in the United States of alleged violations of anti-bribery laws in relation to the $2-billion casino project in the Philippines.


The deal is different from the aborted framework with Robinsons Land Corp., which would have allowed the Gokongwei-led firm to likewise acquire a minority interest in the gaming facility to be operated by Okada’s Tiger Resorts, Leisure and Entertainment. At the same time, RLC was supposed to acquire a majority stake in Eagle I.


The stock market was abuzz with talk about the prospective property deal between Century and Okada in the last two trading days. On Thursday, shares of the property firm rose by 5.2 percent to P1.82 per share, giving it a market capitalization of P16.75 billion.





seo tools

Tokyo stocks down 0.74 percent by break






TOKYO–Tokyo stocks were down 0.74 percent by the break, as Sony shares dived after the electronics giant slashed its full-year outlook.


The benchmark Nikkei 225 index shed 105.91 points to 14,222.03 by the break, after opening 0.52 percent higher.


The Topix index of all first-section shares was down 0.76 percent, or 9.07 points, to 1,185.19.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150323


Tags: business and finance , economy , Nikkei , Stock Activity , Stock Market , Tokyo , Topix index



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:


c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94



seo tools

Indonesia hit with mass strike over wage hike demands



Indonesian workers march during a rally against low wages in Jakarta, Indonesia, Thursday, Oct 31, 2013. Thousands of workers staged the rally demanding the Jakarta government to set a new regional minimum wage at Rp. 3,7 million (US $325). (AP Photo/Achmad Ibrahim)



JAKARTA, Indonesia—Tens of thousands of workers went on strike across Indonesia Thursday, in the latest industrial action to hit Southeast Asia’s top economy as its citizens seek a greater share of the spoils from stellar growth.


But the police estimate of participation in the strike was only around 100,000, far below the three million unions had predicted, taking some pressure off the government and employers who are seeking to limit wage increases.


Unions earlier claimed two million downed tools on day one of the two-day nationwide strike, but crowds appeared small in many cities and police forces across the country mostly reported only minor walk-outs.


The strike was called for workers to demand hefty pay rises as the cost of living skyrockets due to surging inflation, which has been driven up in recent months by an unpopular fuel price hike.


While the industrial action was smaller than anticipated, it still closed many factories around the country that produce everything from clothes to electronics, often for international companies.


By far the biggest strikes were in Jakarta and the industrial hub of Bekasi just outside the capital, with around 60,000 people walking out in the area.


Security was tight with more than 150,000 police mobilized across the country.


In Pulogadung industrial estate in East Jakarta, thousands of workers in uniform marched past deserted factories, led by a truck with people shouting from loudspeakers.


Hundreds of strikers rode motorcycles, waved banners and shouted: “Long live the workers” and “Raise our pay.”


“I am not asking to live in a castle or sleep on a bed of gold, just for what we deserve from working so hard to contribute to the economy,” said Achmad, 46, a welder who, like many Indonesians, goes by one name.


Elsewhere, police said around 5,000 took part in the strike in Surabaya in East Java province, and 1,000 downed tools in Makassar on the central island of Sulawesi.


National police spokesman Ronny Sompie told AFP: “There were more than 100,000 workers who went on strike today, and most of them were also part of labor protests across Indonesia.”


He added most of the rallies took place in industrial areas and were peaceful.


Employers determined to avoid wage hike


The lower-than-expected turnout will be welcomed by employers, who are fighting to limit big salary rises they claim are denting profits and could lead foreign investors to take their business to neighboring countries.


The government has also raised concerns about soaring wages, particularly at a time when growth is slowing, and there has been recent economic turbulence due to fears that the US may reduce its stimulus programme.


Nevertheless, many workers remain concerned they are not being fairly rewarded for their contribution to the country’s strong growth, which has come in at over six percent in recent years.


“Many workers who could not afford their rents have had to move out of their homes and live under bridges and in sewers,” said Said Iqbal, chairman of the Confederation of Indonesian Workers Union.


“They are eating instant noodles instead of rice.”


Workers say they have been hard-hit by the government’s decision in June to raise petrol prices by 44 percent and diesel by 22 percent, a move aimed at reducing subsidies that were gobbling up the state budget.


Employees are demanding “just a decent pay raise to compensate for inflation,” said Iqbal, adding: “We laborers have contributed so much to the economy, why are we trampled upon?”


Strikes and protests by Indonesian workers have been on the rise as they demand higher wages at a time when the economy is booming.


Industrial action typically heats up in October and November as local governments decide on minimum wages for the following year in their areas.


Workers in Jakarta this year received a 44 percent increase in minimum salaries to 2.2 million rupiah ($200) a month, and others across the country have also received sizable raises.—Arlina Arshad





seo tools

US stocks close October in the red







Trader Christopher Lotito, center, works on the floor of the New York Stock Exchange Thursday, Oct. 31, 2013. US stocks fell Thursday following a flood of mixed earnings reports, but registered strong gains for the entire tumultuous month of October. AP PHOTO/RICHARD DREW



NEW YORK CITY—US stocks fell Thursday following a flood of mixed earnings reports, but registered strong gains for the entire tumultuous month of October.


The Dow Jones Industrial Average dropped 73.01 points (0.47 percent) to finish at 15,545.75.


The broad-based S&P 500 fell 6.77 (0.38 percent) to 1,756.54, while the tech-rich Nasdaq Composite Index declined 10.91 (0.28 percent) to 3,919.71.


Despite the day’s losses, the markets cruised through a dramatic October, marked by a cliffhanging Washington battle over the budget and the debt ceiling, as well as the 16-day partial government shutdown.


Over the month, the Dow gained 2.8 percent, the Nasdaq was up 3.9 percent and the S&P 500 advanced 4.5 percent.


Earnings returned to focus after the Federal Reserve on Wednesday maintained its aggressive monetary stimulus policy in a widely expected decision.


ExxonMobil reported an 18 percent fall in profit to $7.9 billion, but the biggest US oil company beat expectations on higher oil and gas output despite weakness in the refining segment. The Dow member’s shares rose 0.9 percent.


Dow component Visa fell 3.8 percent after earnings matched expectations but revenues lagged forecasts of $3.02 billion at $2.97 billion. The company authorized a new $5.0 billion share repurchase program.


Facebook fell 2.4 percent after signaling that it sees usage weakness among young teens, a prime market for the social-networking giant.


Starbucks slipped 0.3 percent after giving a 2014 earnings forecast that lagged analyst expectations.


Cosmetics company Estee Lauder lost 0.6 percent despite besting expectations by three cents at 76 cents per share and raising the range of its earnings guidance. The company is “well positioned for the important holiday shopping period,” said chief executive Fabrizio Freda.


But another cosmetics company, Avon Products, plummeted 21.9 percent after disclosing that US agencies are seeking a penalty of a “magnitude significantly greater” than the company’s proposal to settle a foreign bribery investigation.


Oil company ConocoPhillips edged up 0.1 percent after earnings rose 38 percent to $2.5 billion. The company said it was on track with some $8.9 billion in asset sales and with efforts to grow oil and gas production by 3-5 percent.


Bond prices fell. The yield on the 10-year US Treasury rose to 2.55 percent from 2.53 percent Wednesday, while the 30-year advanced to 3.64 percent from 3.63 percent. Bond prices and yields move inversely.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150307


Tags: close , Market , stocks , US



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

Philippine markets to be closed Friday






MANILA, Philippines—Financial markets in the Philippines will be closed on Friday for a national holiday, All Saints’ Day.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150301


Tags: Advisory , Philippines , Stock Market



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:


c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94



seo tools

Japanese tycoon Okada, Antonios partner to put up gaming complex

By





Japanese gaming magnate Kazuo Okada: Teaming up with Antonio family AP FILE PHOTO



MANILA, Philippines—Japanese gaming magnate Kazuo Okada is teaming up with the Century Properties Group of the Antonio family to pursue a project to build an integrated gaming and entertainment complex in the Philippine Amusement and Gaming Corp.’s Entertainment City, envisioned to be the Philippines’ version of the Las Vegas strip.


Industry sources said Okada’s group and CPG, plus another local partner, firmed up last Friday a framework agreement to work on the project and will soon be making an official announcement.


CPG came into the picture after Okada and the Gokongwei Group’s Robinsons Land Corp. aborted discussions on a planned gaming partnership. This was at the height of reports that an investigation had been launched on Okada in the United States for alleged violations of Philippine antibribery laws in relation to the planned $2-billion Philippine casino project.


Industry sources said CPG is set to make a disclosure on the partnership with Okada after the long holiday next week. There is a privately held third party that may also be involved in the deal, the sources added.


Shares of CPG rose by 5.2 percent to P1.82 per share in the stock market on Thursday—giving the group a market capitalization of P16.75 billion—as some investors appeared to have gotten excited over a potential deal with the Okada group. As of press time, however, spokespersons from CPG and Okada declined to comment on the matter.


Joseph Roxas, president of Eagle Equities Inc., said this prospective partnership would open up a potential gaming play for CPG, “given the market’s propensity for gaming stocks.” However, he said it would still depend on what CPG’s role will be in the partnership.


The partnership with Okada will give CPG a foothold in Entertainment City, even if limited licenses have already been awarded to four proponents. The other Entertainment City licensees are ports tycoon Enrique Razon’s Bloomberry Resorts, the Melco Crown Entertainment-Belle Corp. group and the Andrew Tan-Genting tandem. So far, only Bloomberry’s Solaire Manila is operational.


Okada has long been in search of a local partner, in part to address the foreign equity limits on land ownership.


Recently, the Japanese group found an ally in the Philippine Economic Zone Authority (Peza) in putting up a legal defense against the bribery allegations over Okada’s Philippine casino project.


Okada’s Tiger Resorts, Leisure and Entertainment Inc. (TRLEI), through Philippine subsidiary Eagle 1 Landholding Inc., received an official letter dated Aug. 23 from Peza stating that the local unit had complied with “all the necessary documents required for the presidential proclamation of Okada Resorts as a tourism economic zone and TRLEI as an economic tourism locator enterprise under Republic Act No. 7916” (the Special Economic Zone Act of 1995).



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150293


Tags: Antonio family , Century Properties Group , Entertainment City , gaming and casinos , Japan , Kazuo Okada , Philippines



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

Fake branded cigarettes believed headed for UK seized in Manila

By




MANILA, Philippines—The Bureau of Customs (BOC) has seized a shipment of counterfeit cigarettes from China worth P18 million.


The contraband—fake Marlboro cigarettes—arrived at the Manila International Container Port (MICP) on Tuesday.


Customs Commissioner Ruffy Biazon said the cigarettes were misdeclared as mono acetate filter rods.


“Misdeclaration, as defined in the Tariffs and Customs Code of the Philippines, is outright smuggling. Thus, value declaration is no longer an issue in determining whether an alert order should be issued or not, as all misdeclared shipments are subject to immediate seizure by the government,” said Biazon, who inspected the shipment together with Deputy UK Ambassador to the Philippines Trevor Lewis.


Lewis said the risk to people’s health of smoking fake cigarettes was greater because “they don’t have proper filters.”


“In reality, with the proper brand you have proper filters to prevent, offset some of the bad health effects. With these ones, they don’t have proper filters. They were produced as cheaply and as hastily as possible and sold as the real thing,” Lewis said.


“These counterfeit cigarettes [carry an] American brand, but we’re pretty certain that these cigarettes were destined for the United Kingdom, that’s why we are interested,” he said, adding that had the shipment reached the UK and been sold there, the British government would have lost $4 million.


The cigarette shipment was consigned to Transocean Export Sales, a trading company in Intramuros, Manila.


Biazon said the sin tax law raised the duties for imported cigarettes and liquor to raise revenue for the government and to discourage smoking and drinking by making cigarettes and alcoholic drinks more expensive.


But this caused a rise in the smuggling of cheaper cigarette brands.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150289


Tags: China , fake cigarettes , misdeclaration , Philippines , Smuggling , UK



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

Gold Stock Tricks and Treats


The Gold Report: It's Halloween and we remain in the clutches of a tricky market for junior resource equities. What are your perspectives on how long it's going to take before investors see another treat-filled year like 2010?


Malcolm Gissen: The last couple of years have been frightening for investors, in both gold commodities and gold stocks. Gold prices have been rising the last few weeks, allowing some people hope, but I don't expect an appreciable change in the gold price and the appeal of gold mining companies until 2015.


Marshall Berol: I'm more optimistic than Malcolm. I think the market will change, possibly in as little as five months. The underlying fundamentals that have driven gold up over the last dozen years are still in place: the money printing presses, supply and demand for bullion, bars and coins. Costs are going up, so is the need for higher prices.


I would like to see the market refocus on fundamentals and get away from tracking the hour-to-hour and day-to-day activities of the financial players. What they are doing in the futures markets is driving the price of gold and other commodities up and down incessantly. The dollar is up; the dollar is down. Oil is up, oil is down. Stock prices react to whatever news is coming out of Washington, Europe or Japan. At some point, investors will realize that gold's underlying fundamentals have not changed and that there are reasons to buy it.


MG: We started investing heavily in gold in the accounts of clients of our RIA firm, Malcolm H. Gissen Associates, in 2002, when gold was under $300 per ounce ($330/oz). We built allocations to precious metals of 1518% by 2004. When Marshall and I launched the Encompass Fund in mid-2006, gold companies was the largest asset class. We believed that gold was deeply undervalued and with India and China, cultures that value gold and use it as a currency substitute, developing a middle and upper class, demand for gold would increase exponentially. We also knew that many investors would come to realize that the gold price would go up because of inflation and currency devaluation the historical reasons people buy gold.


That attitude has changed over the last two-and-a-half years. Fundamentals no longer seem to play a role in attracting investors to buy gold or gold stocks. Marshall thinks it would be nice for people to go back to looking at fundamentals; I'm not sure that will happen. The information explosion gossip, rumors and trying to guess what hedge funds and private equity investors are doing plays an increasingly larger role in decision-making.


One factor that would cause gold to rise would be the realization that the U.S. government is printing money to deal with its tremendous debt. This is not sound policy. This should scare people, but it doesn't seem to at this time.


The Federal Reserve is doing everything it can to keep interest rates low, which is good for corporations and good for the economy, but it is doing that by buying bonds and mortgages. Eventually, we will have to pay the piper. At that point, hard assets like gold and silver will look a lot more attractive. Until we get to that point, I'm concerned that gold will not break out of the range it has been trading in for the last couple of years.


TGR: Change will require the onset of fear.


MG: Fear is definitely one strong motivator. Unlike Halloween, where children (and many adults!) love going to haunted houses to be frightened, people do not seek fear in their investments. Rather, they avoid fear, often at all costs. If fear returns in the markets, Marshall and I think that gold is likely to be a place where investors will move their money.


Another new development affecting gold and silver prices in the long run could be supply constraints. The world's largest mining companies have realized that they must be more sensitive to escalating costs of building and operating mines, especially with gold and silver at present prices. They can't rely on $1,6001,900/oz gold prices to pay for $37 billion ($37B) expansion and construction projects and remain profitable. With gold in the $1,0001,300/oz range, some companies are not profitable.


I just attended an excellent presentation by Juan Carlos Artigas, head of investment research at the World Gold Council. While arguing that all investors should have a 310% allocation to gold because it is an asset with low correlation to almost all other assets, he pointed out that all-in costs for some gold producers were in the $1,200/oz range. As a result, CEOs are less willing to build large projects. We also have seen much less merger and acquisition activity among the majors. I believe that will, over the next few years, threaten the gold and silver supply.


If gold supplies are threatened, it could raise gold prices. I can't say whether that will happen in six months or three years, but I believe that we're headed in that direction.


TGR: Do you expect the trend of up-and-down gold prices with no real pattern and with little consensus to continue until there is a decided move upward?


MB: Although we disagree on timing, we agree that gold will continue trading in the $1,2001,450/oz range until it breaks out to the upside.


MG: I think there's a floor in the $1,1001,200/oz range. When gold goes below a certain level, companies will stop producing, there will not be enough gold to meet demand and we'll see higher prices.


Industry executives tell us that if gold should ever get to $1,000 or $900/oz, they expect many of their colleagues to go on care and maintenance, because they can't make any money at that price. They'll go to a skeletal crew and cut back on production.


MB: It's happening. Goldcorp Inc. (NYSE:GG) reported it is delaying work in Argentina due to rising costs and other factors. Its all-in sustaining cost is likely to be $1,0501,100/oz for 2013. At that level and this is one of the largest gold miners in the world management teams cannot continue to produce and lose money.


TGR: Let's look at silver. New York's CPM Group expects silver prices to consolidate for another three years, at an average of $18/oz. Do you support that forecast?


MG: I don't, for a couple of reasons. First, it's very difficult to make forecasts for a specific time frame. I cannot predict what will happen in three years. It is difficult enough trying to forecast where prices will be in three or six months! Second, because silver has so many more industrial uses than gold, I don't see silver prices declining by an additional 15% after the sharp decline of the past year. I also do not believe that silver prices will break out until factors similar to what I mentioned for gold change.


MB: Silver's current price is $2122/oz, so CPM's forecast implies that the price will decline over the next three years. I don't agree. About half of silver usage is industrial electronics and medical, for example all of which are increasing.


Silver tracks the price of gold investment-wise, but I think it could do better than gold percentage-wise over three years. Historically, silver has been more volatile than gold. It goes up or down to a greater percentage than gold.


TGR: Malcolm, we're just a couple of weeks beyond the federal government shutdown in the U.S. What are your thoughts on the long-term health of the American economy and the American political system?


MG: I'm going to stay away from the politics, because my politics and Marshall's politics are almost diametrically opposite.


I believe the U.S. economy is much healthier than a lot of Americans realize. Our entrepreneurial spirit is extraordinary; the number of young people starting companies has never been greater.


Sometimes government can get in the way. We need more reasonable, workable regulation than we have now. If we do that, the sky is the limit for the U.S. economy. I don't think that will change for many years; I'm very bullish on our economy.


TGR: In 25 years, will the U.S. greenback still be the world's reserve currency?


MG: I think it will. Twenty-five years would be too soon for the American dollar to lose its position as the world's basic currency, just as English is the dominant language used around the world.


MB: You also have to ask yourself what the reserve currency would change to. The euro isn't in any position to become a reserve currency. Nor will it be the yen, the ruble or the peso. It may one day be the Chinese currency, but not that soon.


That brings us back to gold. It would not replace the dollar, but central banks are adding gold to their reserves to lessen the impact of the dollar on the percentages held in their reserves.


TGR: Did you make changes to your Encompass Fund (NASDAQ:ENCPX) due to the government shutdown?


MG: We made no changes in either client accounts or in the Encompass Fund. However, we did debate whether to move more to cash in the eventuality of a default on the U.S. debt and the negative impact that would have on the market. We concluded Congress would likely go right to the wire, when the more moderate Republicans would prevail and strike a deal.


MB: The client accounts are managed to each client's individual goals and objectives. The objective of the Encompass Fund is long-term capital appreciation. We are not a trading fund. The turnover rate for the Encompass Fund runs around 25%. We don't focus on day-to-day, week-to-week or even month-to-month news developments. We look for industries and companies that will do well over time.


TGR: What are your clients telling you these days?


MG: I think clients like less risk and less volatility, and we have moved in that direction over the last 1215 months. We have invested client accounts in more large-cap, domestic stocks. We like the energy, healthcare and technology sectors. We also have added Real Estate Investment Trusts.


We've done the same thing in the Encompass Fund. It was more heavily invested in resource companies, particularly metals. Over the last six months, we've kept the best of the resource companies, but energy is now the largest component represented in the Encompass Fund.


TGR: Your website describes the Encompass Fund as a "go anywhere fund." Geographically, where has the fund gone in the last year that it had not gone previously?


MB: It's more a factor of where we've pulled back than where we've gone for the first time. The fund has a number of resource sector investments in Canada, the U.S., Mexico, South America, Africa and a couple of companies in Europe. We are more wary of jurisdictions that have experienced geopolitical problems, such as Argentina, Bolivia, Ecuador, areas where the governments appear less friendly toward resource operations.


TGR: Marshall, you've invested in resource companies based, in part, on your relationships with company management. How has the downturn in the junior resource space changed those relationships?


MB: It hasn't changed the relationships as much as it has focused us even more on company management.


At the end of 2008, we assessed where all of the companies in the Encompass Fund were relative to their projects, finances and management. We reduced or eliminated a number of the companies that were not making the progress we had hoped for and added to those we thought were stronger. That worked out extremely well for the following couple of years, as the markets improved and some of the companies did likewise.


We did the same thing earlier this year, focusing even more on the management teams. In this very difficult environment, strong, knowledgeable managements with successful track records for bringing projects along and raising money are extremely important.


TGR: But you must have to say no to people when they come to you for more financing.


MB: Yes, almost every day. This year in particular, companies have needed to raise funds just to keep the lights on, much less advance their projects.


We are being far more selective in what we believe justifies funding. Primarily, that translates to companies that are in production and need funding to increase production, or are very, very near production.


TGR: Do the relationships just dry up when you have to turn down funding requests?


MB: I hope not. It's a business decision. Companies are in a position where they need to ask. We're in a position where we can and will say no if it doesn't fit our portfolio objectives. I would hope that the management teams understand our position and our responsibility to our investors.


TGR: What is your current investment thesis for junior mining companies? What do companies you invest in today have to have?


MB: It's very good if they're in production or very near production. That means they're generating revenue and cash flow of some kind and are advancing their projects.


Management and the state of the balance sheet are also factors. Companies with significant cash on their balance sheets are a lot more attractive.


With rare exceptions, it is difficult for us to justify investing in very early-stage companies in this environment.


TGR: This year investors have gotten more tricks than treats in the gold space. What are those rare treats that you're following?


MB: We found a number of treats among the energy companies. We've been invested in Magnum Hunter Resources Corp. (MHR:NYSE.MKT) for some time. It's expanding its operations in the U.S., primarily in oil, some in gas.


TGR: It was up almost 9% on Oct. 24.


MB: Yes. Many of the smaller companies are volatile. Magnum Hunter has doubled in price over the last couple of months. Thus, it's more difficult to buy at these levels. A short while ago, we trimmed the position simply for portfolio management purposes; we still like the company.


We also find industrial metals, such as vanadium and antimony, attractive.


TGR: Which vanadium or antimony plays do you like?


MB: U.S. Antimony Corp. (UAMY:OTCBB) is expanding production in Mexico: mining, milling and processing. A number of strategic metals are currently sourced primarily out of China, and there are a lot of reasons why the users and governments around the world want to move away from China being basically a sole source supplier.


We have an interest in American Vanadium Corp. (AVC:TSX.V). While its project in Nevada is still a ways off, it also has a relationship with a German manufacturer of fuel cells used for energy storage for solar and wind power. That's a very attractive business opportunity for American Vanadium to produce revenues in the short term while it moves ahead on starting production at its vanadium project.


TGR: Is that an off take deal?


MB: It will be partially an off take deal when it gets into production. Right now, American Vanadium is a sales agent for these vanadium-based batteries used to store energy produced by the solar and wind industries.


TGR: Returning to gold, which small-cap gold companies in the Encompass Fund portfolio would you like to talk about?


MB: Relative to a good management team able to move the company ahead and raise funds, I would mention Brazil Resources Inc. (BRI:TSX.V; BRIZF:OTCQX). It isn't yet in production, but it recently announced acquisition of another Brazilian gold company. Marketwise, it has done better as a nonproducing junior company stock than many of its peers.


TGR: Earlier you talked about avoiding places like Argentina, Bolivia and Ecuador. Brazil is right in that neighborhood. Why are you comfortable investing in Brazil?


MB: The Brazilian government seems to be more reasonable, and it is a far larger and broader based economy than elsewhere in South America. Argentina, for example, nationalized a Spanish oil company and changed the tax laws, and the monetary situation is challenging.


TGR: Keeping with our trick-or-treat theme, which gold companies were tricky in 2013?


MB: There were a few whose stock prices suffered dramatically and that may be in positions to treat investors well in 2014.


One is Northern Dynasty Minerals Ltd. (NDM:TSX; NAK:NYSE.MKT). Its Pebble project in Alaska is very large and has a lot of gold and other metals. However, it is controversial from an environmental standpoint. Until mid-September, Northern Dynasty had Anglo American Plc (AAUK:NASDAQ) as its 50/50 partner. Then, Anglo American announced that it was withdrawing from the partnership and discontinuing its involvement, after having spent $541 million ($541M) of a projected $1.5B investment to develop the Pebble project. That took the Northern Dynasty price down dramatically, and it has basically stayed there.


Northern Dynasty says the advantage is that it now owns 100% of Pebble. Rio Tinto Plc (NYSE:RIO) owns 18% of Northern Dynasty. Nobody knows what will happen there.


TGR: Does CEO Ron Thiesssen need another partner to make a go of it?


MB: Yes, although Northern Dynasty claims to have the financial capacity to move forward with permitting and the project.


But investors were tricked, to use our Halloween analogy, because they thought Anglo would be putting another $1B into Pebble. Anglo's announcement changed the project and the perception of Northern Dynasty. If these concerns can be straightened out, a year from now Northern Dynasty stock should be a real treat for those who invested at this level.


Another situation where the market got tricked is Pretium Resources Inc. (NYSE:PVG). Pretium has a major gold project in British Columbia. Its Valley of the Kings project is very high grade and very large. It was forecast to be in production in 2016. Earlier this month Strathcona Mineral Services Ltd., one of the two independent consulting firms working on a bulk sample project to delineate the gold resource, resigned. The stock took a hit.


Within the past week, Pretium released more details about why the firm withdrew. That raised even more questions about the nature of the project and how viable it is. The stock took another hit. The market felt tricked by an unexpected event driving the stock price down considerably.


If the consulting firm's withdrawal and the reasons for it turn out to be a tempest in a teapot, Pretium stock will become a real treat for investors over the next few months and into 2014.


TGR: Do you consider Strathcona's resignation an entry point to the stock?


MB: Not necessarily an entry point, but it creates what could be an excellent opportunity to get into the stock at half the price it was a month ago.


TGR: Snowden, another geological consulting firm, continues to oversee the bulk sample. Is having Snowden alone sign off on the bulk sample enough?


MB: It will be enough for some people, not for others. That is the conundrum in assessing Pretium and determining a good entry point price.


Some people will say there's too much smoke and don't want to get near it. Others will assess the situation as it develops and as the bulk sample results come out Pretium has announced results from about one-quarter of the 10,000-ton bulk study and will decide they want to invest.


TGR: Any other names you'd like to mention?


MB: We like Primero Mining Corp. (PPP:NYSE; P:TSX), which is making good progress at its San Dimas mine and Cerro del Gallo project in Mexico. It is producing cash flow, is growing and expanding and has a very accomplished, experienced management team. Despite recent questions about Mexico instituting a new tax and royalty structure, Mexico remains an attractive mining jurisdiction.


I recently visited Comstock Mining Inc. (LODE:NYSE.MKT). It has put together a major land package in the Comstock Lode area south of Virginia City, Nevada. It has been in production for about one year, and projects doubling its production to 40,000 oz gold equivalent in 2014, from 20,000 oz gold equivalent in 2013. The key for Comstock will be continued production expansion, which should lead to a lower cost of production per ounce and increased cash flow and operating margins. Increased exploration, which is ongoing, is likely to increase production and cash flow over time.


TGR: What tricks should investors avoid in today's economic environment?


MB: Unfortunately, tricks are most noticeable with hindsight. I think the trick to success is to avoid assuming that when gold or silver prices rise that it will raise all the boats. While we remain optimistic on the price of gold and silver, just having an inexpensive stock doesn't mean it will go up if the price of gold goes up. You have to dig deeper and look at the management, the projects, the location and the finances.


TGR: Indeed. That trick is a real treat. Thanks for your time and insights.


Malcolm Gissen founded Malcolm H. Gissen Associates Inc., an investment advisory services firm, in 1985. His management experience has focused primarily on investments in publicly traded companies. He holds a Bachelor of Science degree from Case Western Reserve University and a Juris Doctor (J.D.) degree from the University of Wisconsin.


Since 2000, Marshall Berol has been the chief investment officer of Malcolm H. Gissen Associates Inc. In addition, for more than 20 years, he has owned the investment firm BL/SH Financial. His investment management experience has focused primarily on investments in publicly traded companies. Berol did his undergraduate work at the University of California at Berkeley, and has a Juris Doctor (J.D.) degree from the University of San Francisco School of Law. Prior to entering the financial services industry, Berol was a partner in a San Francisco law firm.


Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Interviews page.


DISCLOSURE:

1) Brian Sylvester conducted this interview for The Gold Report and provides services to The Gold Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Gold Report: Brazil Resources Inc., Pretium Resources Inc., Primero Mining Corp. and Comstock Mining Inc. Goldcorp Inc. is not associated with The Gold Report. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Malcolm Gissen: I or my family own shares of the following companies mentioned in this interview: Magnum Hunter Resources Corp., U.S. Antimony Corp., American Vanadium Corp., Brazil Resources Inc., Primero Mining Corp., Comstock Mining Inc. and Encompass Fund. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Marshall Berol: I or my family own shares of the following companies mentioned in this interview: U.S. Antimony Corp., American Vanadium Corp., Brazil Resources Inc., Comstock Mining Inc. and Encompass Fund. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

5) Encompass Fund (co-managed by Mr. Gissen and Mr. Berol) is invested in Magnum Hunter Resources Corp., U.S. Antimony Corp., American Vanadium Corp., Brazil Resources Inc. and Comstock Mining Inc.

6) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.

7) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.

8) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.


Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/I3U_uO3_kEY/15690



news

Asian shares slip, Fed outlook fuels taper rumors



A man watches an electronic stock indicator in Tokyo, Wednesday, Oct. 30, 2013. Asian markets slipped Thursday after the US Federal Reserve kept its stimulus program unchanged but gave a rosier than expected summary of the economy, fueling expectations it will soon start winding the measure down. AP PHOTO/SHIZUO KAMBAYASHI



HONG KONG—Asian markets slipped Thursday after the US Federal Reserve kept its stimulus program unchanged but gave a rosier than expected summary of the economy, fueling expectations it will soon start winding the measure down.


While the central bank’s decision to keep the $85 billion-a-month scheme in place was widely expected, the upbeat outlook provided strong support for the dollar.


Tokyo shed 1.20 percent, or 174.41 points, to end at 14,327.94, Sydney eased 0.10 percent, or 5.4 points, to 5,425.5 and Seoul tumbled 1.43 percent, or 29.49 points, to 2,030.09.


Hong Kong lost 0.42 percent, or 97.65 points, to end at 23,206.37 and Shanghai fell 0.87 percent, or 18.85 points, to 2,141.61.


After a closely watched two-day policy meeting, the Fed said Wednesday it would hold steady on its bond-buying program as it awaits further signs the US economy is strong enough to stand on its own feet.


Policymakers made no reference to the potential impact of October’s government shutdown and did not hint at future plans for the stimulus.


However, analysts noted the bank did not downgrade its outlook from earlier statements, and some suggested it could begin to reel in the scheme as early as December.


“While maintaining that the economy continued to expand at a moderate pace and that housing may have slowed slightly, overall the Fed noted that downside risks have diminished,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.


The commentary was “slightly more optimistic than expected” and “not as dovish as many had expected,” Esiner added.


Investors have been keeping a close eye on the Fed’s plans for the stimulus since May, when it indicated it might begin cutting down its bond purchases, sending global markets tumbling.


Tapering had been expected by the end of this year but a weak set of data—including soft jobs growth—and October’s two-week government shutdown had made that highly unlikely.


However, the latest comments have sparked talk of such a move before January.


The dollar advanced in New York on expectations there will be less cash washing around the financial system, although it retreated slightly in afternoon Asian trade.


The greenback bought 98.35 yen Thursday, compared with 98.52 yen in New York but well up from 98.14 yen earlier Wednesday in Tokyo.


The yen gained a measure of support from the Bank of Japan’s decision to delay expanding its own stimulus program.


The euro bought $1.3702 and 134.79 yen Thursday, against $1.3738 and 135.35 yen.


On Wall Street the three main indexes retreated on the Fed news, with the Dow and S&P also hit by profit-taking after hitting record highs in the previous session.


The Dow fell 0.39 percent and the S&P 500 declined 0.49 percent, while the Nasdaq lost 0.55 percent.


In oil trade, New York’s main contract, West Texas Intermediate for December delivery, slipped seven cents to $96.70 in afternoon Asian trade. Brent North Sea crude for December dropped 43 cents to $109.43.


Gold cost $1,334.20 at 1030 GMT compared with $1,350.42 on Wednesday.


In other markets:


– Mumbai rose 0.62 percent, or 130.55 points, to a new record close of 21,164.52 points.


State-run Bank of India rose 21.26 percent to 209.96 rupees while steel producer Tata Steel rose 2.45 percent to 334.4 rupees.


– Bangkok jumped 0.82 percent, or 11.76 points, to 1,442.88.


Coal producer Banpu rose 2.65 percent to 29 baht, while Airport Authorities of Thailand fell 0.47 percent to 212 baht.


– Jakarta closed down 1.40 percent, or 64.25 points, at 4,510.63.


State miner Aneka Tambang gained 2.56 percent to 1,600 rupiah, while Bank Negara Indonesia fell 0.52 percent to 4,800 rupiah.


– Singapore closed down 0.61 percent, or 19.77 points, at 3,210.67.


Singapore Telecom eased 1.31 percent to Sg$3.78 while real estate developer Capitaland was down 1.27 percent at Sg$3.12.


– Kuala Lumpur’s main index fell 10.53 points, or 0.58 percent, to close at 1,806.850.


UMW Holdings ended 2.7 percent lower at 12.80 ringgit while Genting lost 1.7 percent to close at 10.48. Fraser & Neave Holdings rose 0.7 percent to 18.62 ringgit.


– Taipei fell 0.18 percent, or 15.00 points, to 8,450.06.


Chunghwa Telecom rose 0.21 percent to Tw$94.6 while Hon Hai fell 0.67 percent to Tw$74.5.


– Wellington rose 0.86 percent, or 41.75 points, to 4,909.73.


– Manila closed down 0.18 percent, or 11.83 points, at 6,585.38.


Philippine Long Distance Telephone added 0.35 percent to 2,870 pesos and Ayala Corp. was up 0.25 percent at 603 pesos.—Danny McCord





seo tools

3 Stocks To Sweeten Your Portfolio


Halloween costumes and confectionery sales move into high gear tonight as millions of children will dress up and go trick-or-treating.


I thought it would be fun to take a look at the sweet side of the market and pick out some "sweet" stocks for you.


I have three stocks to satisfy your sweet tooth today:

NestlƩ SA (NASDAQ:NSRGY)

Hershey Co (NYSE:HSY)

Mondelez Intl (NASDAQ:MDLZ)


All three stocks are in a positive mode based on the Trade Triangle technology and look to go higher.


The stock I'm analyzing in detail is NestlƩ SA (NASDAQ:NSRGY).



1. Classic Uptrend Line

2. Break of Uptrend Line

3. Classic Downtrend Line

4. Break of Downtrend Line

5. Double Bottom

6. Pivot Point

7. Resistance Now Support

8. Potential Fibonacci


At the moment, it would appear as though there is some resistance for NestlƩ SA (NASDAQ:NSRGY) around the $74 level. Previously in April this level proved to be a challenge as NestlƩ fell back to just below the $65 level before regrouping and making a double bottom (see number 5 on the chart). After creating the double bottom, the stock then moved over the pivot point (number 6 on the chart) indicating that higher levels were ahead. The technical count from the double bottom to the pivot point is $75.


What I suspect could happen now is a pullback from the number 8 area on the chart, back down to the pivot point (number 6), which also represents a 50% Fibonacci retracement.


The Trade Triangle technology has performed very well with the latest buy signal based on our monthly Trade Triangle coming in on 10/17 at $70.83.


With both the intermediate and longer-term Trade Triangles positive, I see no reason not to stay long this stock. If I see a Fibonacci correction back to the $70.50 level, I would view this as a low risk entry point with appropriate money management stops.


Should we see a Fibonacci retracement to the $70.50 area and then see this stock move through the $74 level, that would make the upside target $83 for NestlƩ SA (NASDAQ:NSRGY).


Happy Trick or Treating,

Adam Hewison

President, INO.com

Co-Creator, MarketClub



news

BOC misses September collection goal


9-month revenues of P224.45B is 10% off target


By





Customs Commissioner Ruffy Biazon INQUIRER FILE PHOTO



The Bureau of Customs again fell short of its monthly collection target in September, staying further off track of its full-year revenue goal.


Nonetheless, collections for the month marked a double-digit pace of increase from a year ago on the back of latest measures attempting to reform the bureau, which has been highly criticized for corruption and its failure to curb smuggling.


The Department of Finance reported Thursday that the BOC collected P25.84 billion in September, short by 11.8 percent of its goal for the month. However, the collection in September was up by 11.3 percent from September last year. It was the third consecutive month that the BOC registered a double-digit pace of increase in monthly collection compared to the previous year’s levels.


The faster pace of increase came amid an ongoing reorganization in the agency. In particular, new deputy commissioners were appointed and some port collectors were reassigned to research jobs. Moreover, the agency is also reviewing profiles of employees to determine whether they are fit for their current posts or have to be reassigned as well.


The latest collection performance brought the BOC’s total collections for the first three quarters of the year to P224.45 billion, short by 10.3 percent of its goal for the period. The collection for January to September, however, was up 5.1 percent from last year.


The BOC was criticized by President Aquino during his latest State-of-the-Nation Address in July as one of the most corrupt agencies that his administration intended to reform.


An earlier proposal to abolish the BOC and create a new one was raised, but questions about the legality of such a move prompted the administration to simply attempt at reorganizing the agency.


For this year, the BOC is tasked to collect P340 billion, which is 17-percent higher than its collections last year.


Customs officials had said that the full-year goal was difficult, if not impossible, to achieve given the monthly collection shortfalls.


Some officials blamed lower-than-target imports as well as declining tariffs on imported goods from Southeast Asia for the collection shortfalls.


Under a regional trade agreement, members of the Association of Southeast Asian Nations (Asean) are continually reducing tariffs on goods coming from member countries until the taxes on most goods reach zero by 2015.


However, observers said there was a huge room to boost collection of the BOC given the substantial leakages arising from smuggling. According to estimates, the government loses about P200 billion in potential revenue collection a year due to smuggling.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150243


Tags: Bureau of Customs , Business , collection target



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

Stocks down on profit-taking






Local stocks slipped Thursday as investors pocketed recent gains ahead of the long weekend break while weighing a less than dovish US Federal Reserve stance.


Wiping out modest gains early in the session, the main-share Philippine Stock Exchange index closed 11.83 points or 0.18 percent lower at 6,585.38. This ended a two-day run-up in anticipation that the US Federal Open Market Committee (FOMC) meeting would keep its aggressive monetary stimulus.


But while the stimulus was kept for now, investors are starting to price in the start of the tapering process by early 2014.


For the three-day trading week, the index gained 45.57 points or 0.7 percent.


The day’s biggest PSEi laggers were BPI and AEV, which both declined more than 2 percent, while Ayala Land, Petron, AGI, Jollibee, Philex, Globe and Metrobank lost more than 1 percent.


On the other hand, the day’s biggest index gainer was SMPH (+2.68 percent). Pasay City has rejected Ayala Land’s bid for more time to counter SM Land’s 300-hectare reclamation project. (See story on B3). It was the most actively traded stock for the day.


Other index gainers were URC, Bloomberry, Semirara and DMCI, which gained more than 1 percent while ICTSI, RLC, GTCAP, BDO and JGS contributed to the day’s gains.


Value turnover amounted to P8.28 billion. There were 86 advancers, which edged out 68 decliners, while 37 stocks were unchanged.


Across the region, equities trading was mostly sluggish after an overnight pullback in Wall Street. Doris C. Dumlao



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150241


Tags: Business , stocks



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

SEC approves P5-B retail bond offer of Rockwell


Proceeds to finance part of capex in 2014


By




Property developer Rockwell Land Corp. has obtained approval from the Securities and Exchange Commission (SEC) to embark on a P5-billion retail bond offering.


The SEC approved Rockwell’s registration statement covering P5 billion worth of unsecured fixed rate peso retail bonds with a tenor of seven years and one quarter, based on documents from the corporate regulator.


Interest rate on the proposed bond offer will be determined based on an interpolated 7.25-year Philippine Dealing System (PDS) treasury-fixing benchmark rate and an estimated spread of 125 to 175 basis points.


The issue manager for the offering is First Metro Investment Corp. while the joint lead underwriters are FMIC and SB Capital and Investment Corp.


Proceeds from the offering are intended for capital spending for the remainder of this year and for 2014, primarily for its upscale Proscenium development. These will cover expenditures not covered by funding raised from the P10-billion corporate notes drawn this year.


The Proscenium, located beside Rockwell Center, is one of the company’s big-ticket projects and will comprise five towers requiring an estimated investment of P26 billion.


Rockwell Land officials earlier said that the company was looking to hold a follow-on share sale to help finance its expansion into the broader affordable property sector.


These products will be offered through a new subsidiary, Primaries Development Corp. Its maiden project is a mid-rise residential project in New Manila called 53 Benitez.


For 53 Benitez, Primaries is eyeing a mid-rise medium-density project with 364 units contained in two towers. The company plans to offer two- to three-bedroom units described as starter homes.


Rockwell Land president Nestor Padilla earlier said that he expected a sustained increase in profitability this year, as the company is projecting a profit target of P1.4 billion to P1.5 billion against a net profit of P1.1 billion in 2012.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150211


Tags: Business , retail bond offer , Rockwell Land Corp. , SEC



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:




seo tools

US Fed move to keep funds flowing to emerging markets

By




Cash is expected to continue to flow into the Philippines and other emerging markets, pushing up values in the stock and foreign exchange markets, following the US Federal Reserve’s decision to keep its asset purchases steady this week.


But Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the Fed’s decision to further delay the start of its so-called taper merely delayed the inevitable.


“The Fed’s decision prolongs the waiting game for the inevitable. In the meantime, we can expect ‘risk on’ behavior in emerging markets,” Tetangco told reporters yesterday.


The Fed’s Federal Open Market Committee (FOMC) this week announced that it would maintain its purchases of mortgage-backed securities and US treasuries at a pace of $85 billion a month.


With the US Fed still pumping cash into the world economy through its asset purchases, the BSP said it would monitor the effects that some of these funds might have on local financial markets.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150209


Tags: Business , emerging markets , US Federal Reserve



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:


c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94



seo tools

Elusive tax evasion cases


Internal Revenue Commissioner Kim Jacinto-Henares was being nice when, in a recent interview by the Inquirer, she said too much stress on due process is derailing the Bureau of Internal Revenue’s efforts to go after tax evaders. According to her, out of about 200 complaints the BIR has filed with the Department of Justice since she was appointed to her post three years ago, only 10 cases have so far been cleared for prosecution. The rest are still under preliminary investigation or were dismissed for lack of probable cause.


Tactfully, observing inter-government office courtesy, Henares refrained from blaming the DOJ for the delay or dismissal of the complaints. She stated that, in the country’s history, only one tax evasion case has been successfully prosecuted, tried and decided by our courts. This is the case of Gloria Kintanar, an independent contractor of Forever Living Products Philippines Inc., who was sentenced to two to four years of imprisonment for failure to pay taxes worth P6.3 million.


Unfortunately, the otherwise unprecedented feat is yet to be considered an achievement because Kintanar has evaded arrest up to the present. There is no record of her having left the country so there is a strong possibility that she still around living the life of a fugitive from justice.


Investigation


Although the BIR is the country’s chief tax regulator, it is severely hobbled in the performance of its mandate by a legal constraint that has defied solution for many years.


Under our laws, no tax-related case can be filed or prosecuted in court without the approval of DOJ. This means the BIR has to first file the complaint with DOJ and the latter shall, like any other criminal complaint, conduct a preliminary investigation, which requires giving the respondents the opportunity to present their side on the issue. If, after investigation, DOJ finds the complaint in order, it shall file the proper case in court. If it thinks the evidence submitted is insufficient or the respondents were not given due process before the filing of the complaint, it can order its dismissal. In case of dismissal, the BIR may file a motion for reconsideration or elevate the matter to the Court of Appeals for further review.


Considering the heavy volume of other cases the DOJ (with its limited manpower) investigates, it is not unusual for tax evasion cases to take a minimum of 15 months to be investigated, evaluated and resolved on whether they shall be filed in court or dismissed.


And if the BIR is obliged to ask for reconsideration or run to the appellate court for relief, at least another 12 months have to be added to the waiting period on the evolution of the case.


Prosecution


The undue delay in the resolution of tax-related cases makes a mockery of the oft-repeated pronouncement of the Supreme Court that taxes are the lifeblood of the country. So important are taxes that the tribunal frowns upon tax exemptions or strictly construe them against the party that claims them. Thus, revenue measures are seldom overturned unless they are clearly unconstitutional.


In an effort to improve the BIR’s enforcement capability, several bills have been filed in Congress before that sought to dispense with the “going through DOJ” requirement and instead authorize the BIR to file and prosecute tax-related cases in court. According to the proponents of the bill, the tax case referrals to DOJ have “become a breeding ground for corruption due to the connivance of some prosecutors with the affected taxpayers to either delay the resolution of the cases or decide them in their favor.”


As expected, following the bureaucratic dogma of what-is-mine-is-mine-and-what-is-yours-is-negotiable, DOJ opposed the proposed diminution of its powers over tax-related cases. It argued, among others, that the handover of investigative authority will distract the BIR from its duty to be the principal revenue collection agency of the government.


Expertise


For crimes against life, property and other facets of daily living, or those defined in the Revised Penal Code, the DOJ prosecutors can proudly claim mastery and competence. But it is doubtful if the same boast can be made for the specialized areas of law practice.


In cases, for example, involving taxes, securities regulation, customs and insurance, it is not uncommon for DOJ lawyers to request briefings or “tutorials” on these subjects from the legal experts in the government regulatory offices concerned.


Like the medical profession, the field of law has multifarious aspects that no lawyer, no matter how bright he may be, can honestly assert all encompassing skill. It is for the same reason the Supreme Court created special courts to handle commercial and family relations cases. The judges’ mastery in these fields assures their efficient and able handling.


Tax cases are not the run-of-the-mill type that any lawyer can competently handle. Unlike ordinary crimes, they require expertise in the interpretation of complicated provisions of the Tax Code. An understanding of accounting principles is also essential to make sure financial computations conform to the standards of the industry or business to which the tax provisions relate.


Responsibility


The BIR lawyers do not need any tutorial on taxes. They practically breathe, eat and live tax laws every day. They know by heart the provisions of our tax laws and the Supreme Court decisions that have interpreted them.


Given this background, there is no reason why the BIR cannot be entrusted with the investigation and prosecution of tax-related cases. The transfer of investigative power will accomplish two objectives: First, it will hasten the prosecution of these cases; second, the DOJ will be able to devote more time and staff to the investigation of other criminal cases.


If the BIR loses in court, it will have nobody to blame but itself. And because the prestige of the office is on the line, its lawyers will make sure their evidence is sufficient to convince the court to rule in their favor.


Legalities aside, there’s more than meets the eye in DOJ’s objection to giving the BIR a free hand in the investigation and prosecution of tax-related cases.


For comments, please send your e-mail to rpalabrica@inquirer.com.ph.





seo tools

Pasay City rejects Ayala request for more time to challenge rival bid

By




MANILA, Philippines—The Pasay City government has rejected a request from Ayala Land Inc. to be given 60 more days to challenge SM Land Inc.’s 300-hectare reclamation project.


In a letter dated Oct. 29, Pasay City legal officer Severo Madrona Jr. pointed out that the invitation to submit a counter-proposal — published last Oct. 1. — expressly required submission on or before Nov. 4 following a 30-day period for submission of comparative proposals.


He said the procedure was guided by a legal opinion from the Department of Interior and Local Government recognizing the discretion of a local government unit to implement joint-venture projects pursuant to its own determination of the appropriate rules.


Following the DILG opinion, the city government said it had adhered to the guidelines set by the National Economic Development Authority in dealing with an earlier unsolicited project involving a 60-hectare reclamation project.


“As pointed out by SM Land in its comment (to ALI’s request), we cannot just change the rules in mid-stream to favor a party. Thus, much to our regret, we cannot grant your request for extension of time to submit counter-proposal without exposing ourselves to charges of violating or bending the rules to favor your company,” Madrona said.



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150187


Tags: Ayala Land Inc. , Business , pasay city , reclamation project , SM Land Inc.



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:


c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94



seo tools

Wednesday, October 30, 2013

SEC approves Rockwell P5-B bond offer

By





FILE PHOTO



MANILA, Philippines – Property developer Rockwell Land Corp. has obtained approval from the Securities and Exchange Commission to embark on a P5-billion retail bond offering.


The SEC approved Rockwell’s registration statement covering P5 billion worth of unsecured fixed rate peso retail bonds with a tenor of seven years and one quarter, based on documents from the corporate regulator.


Interest rate on the proposed bond offer will be determined based on an interpolated 7.25-year Philippine Dealing System treasury-fixing benchmark rate and an estimated spread of 125 to 175 basis points.


The issue manager for this offering is First Metro Investment Corp. while the joint lead underwriters are FMIC and SB Capital & Investment Corp.


Proceeds from the offering are intended for capital spending for the remainder of this year and for 2014, primarily for its upscale Proscenium development. These will cover expenditures not covered by funding raised from the P10-billion corporate notes drawn this year.


Related Stories:


Rockwell eyes P5-B bond sale


Rockwell Land ’12 net profit rises by 23%


Rockwell Land launches 3rd tower of Proscenium



Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=150177


Tags: Business , economy , money , News , Real Estate



Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:


c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94



seo tools