Quick Takes: Phoenix Responds to Frozen Bank Account News and 3 More Updates

Phoenix Oil [PNX 9.00 4.15%] https://www.philstar.com/business/2022/10/03/2213967/quick-takes-phoenix-responds-news-frozen-bank-accounts-and-3-more-updates reacted to the announcement of the freezing of its bank accounts to pay a heavy unpaid debt to the LT Group [LTG 8.26 1.08%] specifying that he has not yet “officially received” the copies of the complaint, the summons and the garnishment order issued by the court. PNX said it was “committed” to protecting its rights in the “appropriate place”.

MB Quick Take: While PNX’s answer was pretty standard in terms of what a company might say in comment to a legal question, it’s a bit odd that it pleads “official” ignorance of everything at the moment. stage where the court ordered PNX’s accounts be frozen. Normally, the “awaiting official copies” stuff is what you see at the start of a legal proceeding. PNX has released a second statement on this to say that they haven’t even heard of this case outside of social media, so we’ll have to wait and see what happens.

Basic Energy [BSC 0.29 4.84%] https://www.philstar.com/business/2022/10/03/2213967/quick-takes-phoenix-responds-news-frozen-bank-accounts-and-3-more-updates the board is voting to use 6 million pesos to hire a third-party expert to help it assess and rank its seven potential wind power locations in the Philippines.

MB Quick Take: While “location” is important when it comes to solar and wind power, wind power is by far the more complicated of the two. For starters, the “wind inventory” of various parts of the country is not as widely available as the solar inventory. This makes sense because the availability of light and sun is critical to some agricultural activities, and government (and industry) has a vested interest in studying and assessing the solar potential of various regions of the country. Windy, not so much. To make matters worse, what may seem very windy to us at ground level may not be so “windy” until 50-100 meters where the turbines are spinning (or not spinning) so leaning is risky on anecdotal research of non-technical findings. Worse still is the need for BSC to gain this understanding of wind potential in all seasons of the year, for each of the seven regions. Considering the variables and the sad cost of error, it’s a good sign that BSC is partnering with outside experts for this initiative.

Philippine Telegraph and Telephone Corporation [PTT suspended] https://www.philstar.com/business/2022/10/03/2213967/quick-takes-phoenix-responds-news-frozen-bank-accounts-and-3-more-updates tried to have its 2022 annual meeting of shareholders, but failed due to lack of quorum. As noted by PTT, outgoing directors of the company will continue in office until a vote can take place at a later date, when a new meeting can be scheduled, and a sufficient number of shareholders of the company will show up to vote.

MB Quick Take: PTT really expands the imagination of what it means to be “on” the PSE. The stock hasn’t traded in nearly 20 years, yet she still follows disclosure rules, dutifully informing the market of all of her company’s whereabouts and keeping us updated on the latest quarterly net loss. How does a group served by this company stay in this state for so long? Certainly not minority shareholders. I don’t care too much about the owners of the business as they have direct control over what they do and have a lot more options on how to monetize their interests. Minority holders have far fewer options.

Dual Dragon [DD 6.48 0.15%] https://www.philstar.com/business/2022/10/03/2213967/quick-takes-phoenix-responds-news-frozen-bank-accounts-and-3-more-updates subsidiary, Hotel 101, finalizes the acquisition of a 9,000 m² property in Niseko, Japan. DD wants the site to house its first international hotel, which DD hopes will be the first of many for this budding “global Filipino brand”. DD expects the project to generate 8.1 billion pesos in condotel presale revenue, although it has not set a deadline for recognizing that revenue.

MB Quick Take: DD has big goals, and his goal for Hotel 101 is to be a sort of “home away from home” for Filipino travelers. In the statement to shareholders, Injap Sia wrote that in a few years it hopes to see “a Hotel101 in every urban city and key destination in the Philippines and other overseas countries.” It’s ambitious, but doable in large part because the formulation of the objective leaves a lot of leeway to DD!