Quick takes from around the market
1. Boulevard Holdings [BHI 0.06, down 1.7%; 131% avgVol] [link] was suspended for failure to submit its audited annual financial statements within the extended period provided by the PSE. In the suspension notice, the PSE said that BHI would be suspended on October 16 if the company still has not submitted its annual financial statements to the PSE EDGE disclosure server. BHI said that it needed more time because “consolidation of the financial statements is still in process.”
MB quick: There’s not much more to say about BHI that hasn’t already been said. It’s basically a part of the “ber month” experience now for BHI to be suspended for its failure to meet the bare minimum documentary requirements of being a public company on the stock exchange. At least they didn’t blame COVID this time.
2. Bloomberry [BLOOM 10.30, up 0.0%; 16% avgVol] [link] said that it would use the proceeds of its recent ?5.48 billion equity raise for “debt service”, and that it expects to have fully spent the amount by March 2024. BLOOM’s public float increased from 33.94% to 37.17%.
MB quick take: “Debt service” is just a fancy way of saying “making payments on loans”, but that doesn’t feel like something that BLOOM would need to do a quick share sale to do considering that its Q2 financial statements said it has almost P45 billion in cash and cash equivalents. Maybe the management team just wanted to cash in on the last six months of BLOOM’s elevated stock price? The stock hasn’t been at these levels since before COVID.
3. Abacus Securities (ASC) said, in its recent Short Takes publication, that the conflict between Hamas and Israel appears to be designed to prevent diplomatic negotiations between Israel and Saudi Arabia. This would probably cause oil to rise in the short term, and could provide a catalyst for further increases in the price of oil going forward should the conflict broaden.
MB quick take: Any extended increase in the price of oil will increase the import costs of goods that we need to bring in by air or sea, and those increased costs will be pushed onto consumers. This is what people are talking about when they speak of “inflationary risks to the upside.”
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Merkad
