INSIDERS to watch. If you are among the public investors who bought shares in Concepcion Industrial Corp. (CIC), here are the insiders who reported the number of CIC shares they held as of November 27, 2013 and are therefore worth watching for their trades:
Raul Joseph Concepcion, president, chief executive and chairman, 160,000 shares; 111,000 shares with Abacus Securities Corp. and 532,000 shares with Joy Cecilia Concepcion; Rafael Concepcion Hechanova Jr., vice president-business development and corporate marketing, 1.086 million shares; 47,000 shares held by Rafael Isauro Hechanova 3rd; 20,000 shares each held by Roberto Jose Hechanova and Regina Patricia Hechanova; and Rajan Komarasu, Japanese, director of business solutions, 30,000 shares; and Maria Victoria Asuncion Betita, chief finance and information officer, 20,000 shares.
In a separate filing, Jose Ma. Araneta Concepcion 3rd, a member of the board, rep orted his ownership of 111,000 shares and indirect ownership of 803,437 shares. The same ownership disclosure also showed his acquisition by Triple 8 Holdings Inc. on January 13 of 5,000 shares at P23 each; 25,000 shares at P22.60; 29,700 shares at P22.90 each; and 18,000 shares at P22.95 each. The acquisitions increased the number of CIC shares he owned to 992,000 or 0.38 percent, with market value of P25.792 million at the initial public offering (IPO) price of P26 which dropped 17.39 percent to P21.328 million at a 30-day low of P21.50. The price decline made him poorer in paper by P4.464 million.
(NOTE: Posted at the website of the Philippine Stock Exchange is the sale by Concepcion Industries of 74.965 million shares via IPO at P26 per share listing the total “offer amount” at P2.36 billion, which, when divided by P26 equals P31.45. Then multiplying 74.965 million shares by P26 per share equals P1.95 billion. Some numbers must be missing.)
Unusual surge. Lyra Gracia Lipae-Fabella, corporate secretary/corporate information and compliance officer of Millenium Global Holdings Inc., formerly IPVG Corp., said the company “is not aware of any undisclosed information that could have triggered the observed unusual price movement.”
Fabella was referring to company’s price surge to P0.54 from P0.36 during trading on Wednesday. Then she promised to inform the Philippine Stock Exchange “should the company become aware of any material information” that could have caused such “unusual price movement.”
The public investors are probably hopeful that Millenium would eventually report newly discovered material information other than its acquisition of 51-percent interest in Millenium Ocean Star Corp. that could have boosted the stock’s price. The only question is when this would happen.
Executive compensation. Universal Robina Corp. (URC) projected the pays and perks of its five highest-paid executives in 2013 at P47.71 million. A regulatory filing showed URC topped its estimate by only 1.68 percent.
URC, the listed food unit of JG Summit Inc. of the Gokongwei family, reported having paid the group a total of P48.511 million in 2013, which was P802,000 more than the group’s projected compensation of P47.709 million. In 2012, the company said that these executives received P43.16 million.
In the same filing, URC said its five highest-paid executives then and this year are John Gokongwei Jr., director and chairman emeritus; James Go, chairman; Lance Gokongwei, president, chief executive officer and director; Patrick Ng and Cornelio Mapa Jr., executive vice presidents.
For 2014, URC raised the estimate of the compensation of Gokongwei the patriarch and company at P49.45 million consisting of salary, P48.281 million; bonus,P900,000; other perks, P270,000.
URC’s other officers and directors as a group unnamed got P100.613 million in 2013, up 9.126 percent from P92.199 million in 2012. This year, URC estimated their pays and perks at P102.057 million divided into salary, P99.807 million; bonus, P1.80 million; other perks, P450,000.
Retained earnings. As of September 30, 2013, URC has piled up consolidated retained earnings of P37.77 billion, excluding dividend of P5.20 billion computed at P2.40 a share, which the company paid on June 6, 2013. It also distributed dividend of P3.90 billion in 2012, and P3.90 billion in 2011.
With the accumulated profits, URC has been consistently appropriating certain amount for “the group’s expansion plans” such as P3 billion for 2010; P5 billion for 2011; and P6 billion for 2013. But the company failed to use these appropriations. As approved by the board, all these amounts were returned to “unappropriated retained earnings.”
Instead of using part of its retained earnings for expansion, URC allocated P2.5 billion in 2007 in buying back “the company’s issued and outstanding common shares, representing approximately 7.63 percent of current market capitalization.” In 2011, it extended the share buyback with additional budget of P2.5 billion.
Having successfully implemented the reacquisition plan with a total allocation of P5 billion, URC then sold them back to the market. The resale of 120 million shares at P62 a share, which URC bought back at average price of P5.59, each netted P7.3 billion, which it would use “for potential acquisition and general corporate purposes.”