THOSE who do not read the disclosures of companies listed in the Philippine Stock Exchange (PSE) have been warned: read them.
This is the plain and simple advice of the Do Not Read This column in Opinyon Online.
Take for example what is happening in Premiere Horizon Alliance ($:PHA).
When the PSE issues a halt directive on the trading of a stock at 9:30 a.m. on September 1, and then follows this up with a suspension order on the same stock at 12:20 p.m. of the same day, there surely is something important occurring in the Horizon.
PHA's company disclosure says Marvin dela Cruz's SquidPay is buying into the Batangas-based Philstar Development Bank, a subsidiary of PRIDE, which is a full subsidiary of AbaCore Holdings ($:ABA).
SquidPay has an obligation to pay Philstar Development Bank P900 M for a 60% stake, but it probably does not have the money at the moment, so Premiere Horizon is shelling out P600M in the meantime, for a 40% stake and SquidPay retaining 20 percent.
The purpose of PSE disclosures is to reveal to the public and the investment community what is happening inside company board rooms.
Many of these convoluted developments are hidden in business gobbledygook that ordinary retail traders do not understand.
Dela Cruz's generalized explanation does not help in conveying to holders of $:PHA stocks the situation.He said, "The purpose of the venture is to “target the ever-growing need for cashless payments”, and PHA said that this investment was aligned with its “vision of countryside development and financial inclusivity”.
Why doesn't he just say that this occurrence will be financially advantageous to himself and his group?That will spare us the bafflegab.
But how about the ordinary traders and investors who were hyped before by PHA press releases and announcements of promising business growth?
Last we checked, $:PHA opened at 1.18 and closed at 1.11, for a -4.31% loss.This was on Aug. 31.
Let us see what happens today, September 3, at 10:30 a.m. when the suspension of Premiere Horizon is lifted.As for me -- because I am a fan of Bilyonaryo.com -- I sold all my shares of $:PHA a week or two ago.
Will it be a "buhusan Friday?"
Feedback is welcome from non-readers at ports.reports@gmail.com.