Utilities Should be Publicly-Listed

**uls** · October 29th, 2008 04:43 PM

Ya, if u don't really need more capital, why go public?

besides, there are other ways to raise capital.

if i have a profitable privately held business, and i don't need additional capital, why would i wanna invite other people to make pakialam my business?

tapos magbabayad pa ako ng dividends...

hehe

**True Faith** · October 29th, 2008 09:46 PM

Some economists say that it is good for the economy for corporations to list themselves in the stock market to increase their capital and give the stock market a boost...

It will also give pinoys more choice as to where they can invest their money...

The problem with the country as to why some excess funds of pinoy went to this pyramiding scams in the early 2000 is because there are few options for investments in the philippines....

But if more companies especially the stable utilities offer their shares to the public people might be attracted to invest in the PSE...

**uls** · October 30th, 2008 12:34 AM

Even in early 2000, our stock market can easily absorb the money people put in pyramiding scams.

Those people know the stock market exists but they still chose to go into pyramiding scams.

**jpdm** · October 30th, 2008 07:55 AM

Originally Posted by uls

Even in early 2000, our stock market can easily absorb the money people put in pyramiding scams.

Those people know the stock market exists but they still chose to go into pyramiding scams.

Yup, agree. i really dont know why our PSE is not attractive to local investors...

**niky** · October 30th, 2008 12:57 PM

Because people are lazy.

The rule is simple... if it's too good to be true... it's obviously not.

People are easily suckered by promises of high return for little investment.

"Little" meaning they don't have to research, think, or strategize... hey... just give your money to us, and we'll take care of the rest.

Stocks are a little intimidating to those who don't know much about them... and it's a long-term investment... where you get smaller percentages every year, instead of large returns right away. And "playing" the stock market... buying and selling shares for profit, requires an in-depth knowledge of the business and business environment... it's like betting on basketball games... such detailed knowledge like the fact that a certain team's star player really won't be playing at 100% if he ate steak for lunch can make or break your winning streak.

This is not a slight on those who have been suckered (I know a lot who have been, and a lot pester me to join...), but seriously, use your common sense when investing. (though the current volatility of the markets show that even some of those "smart" enough to play the markets are given to a lack of common sense, too).

**4wrider** · October 30th, 2008 05:03 PM

The are basically two approaches to stock markets. One is technical and the other is fundamental. The first is just really for trading and the other is for investment. In technical all you need to know is the stocks market movement and the rule is simple buy low sell high. In the use of fundamental analysis, you need to get the financial reports, study the industry and company, use forecasting tools etc.

The technical approach is mostly like gambling and the fundamental approach is the real investment. The first gives you quicker results and is most exciting the second is a much more deliberate and sober.

To veer back to the topic, unlisted companies' annual reports should be available at the SEC. However, with the creativity of accountants (which is partly to be blamed for the current financial crisis) it is doubtful if you can extract anything which you can successfuly used against the oil firms.

**jpdm** · October 31st, 2008 04:56 PM

Originally Posted by 4wrider

To veer back to the topic, unlisted companies' annual reports should be available at the SEC. However, with the creativity of accountants (which is partly to be blamed for the current financial crisis) it is doubtful if you can extract anything which you can successfuly used against the oil firms.

Yup, this a problem indeed.

**tidus1203** · October 31st, 2008 05:07 PM

Originally Posted by jpdm

Yup, agree. i really dont know why our PSE is not attractive to local investors...

The PSE has been plagued by a massive scam that it has yet to recover even to this very day (in Tsikot terms kinda like the Mitsubishi Pajero suspension scandal) which is the BW Resources scam. Remember that stocks flew from less than P1/share to almost P200/share. Obviosuly the thing was manipulated by the insiders and toyed with the public and spread rumors to fuel the fire. Remember one of the biggest rumors then was Stanley Ho (the gambling baron of Asia) was going to invest with BW and that made the stock soar only for the insiders who spread the rumor sell little by little. After all was said and donw and after BW Resources tumble like there is no floor back to below P1 many people lost so much money and no one trusted the PSE anymore. Until now its still suffering from the image of elitism and insider trading activities since its controlled by a few members of the "Old Boy's Club".

**Monseratto** · October 31st, 2008 05:54 PM

Originally Posted by tidus1203

The PSE has been plagued by a massive scam that it has yet to recover even to this very day (in Tsikot terms kinda like the Mitsubishi Pajero suspension scandal) which is the BW Resources scam. Remember that stocks flew from less than P1/share to almost P200/share. Obviosuly the thing was manipulated by the insiders and toyed with the public and spread rumors to fuel the fire. Remember one of the biggest rumors then was Stanley Ho (the gambling baron of Asia) was going to invest with BW and that made the stock soar only for the insiders who spread the rumor sell little by little. After all was said and donw and after BW Resources tumble like there is no floor back to below P1 many people lost so much money and no one trusted the PSE anymore. Until now its still suffering from the image of elitism and insider trading activities since its controlled by a few members of the "Old Boy's Club".

With the blessing of ex-convict populist actor. And I cringe at the thought who he is allied with today...

Estrada profited from BW Resources' shares: Espiritu

MANILA, Jan. 11 Kyodo

Former Finance Secretary Edgardo Espiritu told an impeachment court Thursday that Philippine President Joseph Estrada owned shares in BW Resources Corp. and made a huge profit from selling them when the share price skyrocketed.

Espiritu testified that Estrada crony Dante Tan admitted to him that the president owned shares in BW Resources Corp., a gambling company at the center of the Philippines' worst stock-manipulation scandal.

Tan, BW Resources' major shareholder, was implicated in the price-fixing scandal involving the firm. Espiritu said Estrada is also Tan's ''partner.''

Espiritu was a staunch supporter of Estrada during the presidential campaign and was eventually appointed finance secretary. He resigned on Jan. 5 last year.

He stated that Estrada ''got excited'' when the price of BW Resources' shares rose, adding the president had told him he had made a lot of money from BW Resources.

''Ed, I am already raking in a huge profit from BW (shares),'' Espiritu quoted Estrada as telling him.

Espiritu took the witness stand to testify how BW Resources Corp. came into being, saying he tried to patch up the differences between Tan and another Estrada friend, Mark Jimenez, as to who would control the company.

Control over BW Resources' shares was eventually given to Tan who bought back the shares for 150 million pesos ($3 million) from Jimenez, Espiritu said.

He told the court the BW Resources controversy was one of the reasons he decided to resign from Estrada's cabinet.

He said he warned Estrada that ''the presidential friends'' would cause havoc to his administration and asked him to issue a statement concerning the BW price-fixing scandal.

Estrada, however, did not heed his suggestion, he said.

Prosecutors claim Estrada called Espiritu last December and tried to stop him from testifying in the impeachment court.

The country's worst-ever stock market scandal, which rocked the local stock exchange in 1999, caused BW Resource's share price to soar 50-fold before collapsing, wiping out the savings of hundreds of small investors.

Espiritu is the third prosecution witness to be called to testify that Estrada betrayed public trust and violated his own oath of office when he unduly intervened in the Securities and Exchange Commission on behalf of his crony Tan.

Earlier Jose Luis Yulo, former president of the Philippine Stock Exchange (PSE), and another officer, Ruben Almadro, also testified that Estrada exerted pressure on them to exonerate Tan.

Perfecto Yasay, former Securities and Exchange Commission chairman, will also be called to testify in the impeachment trial that began Dec. 7.

Last January Yasay told a Senate committee that Estrada had pressured him to exonerate Tan from the BW Resources probe.

He also accused Estrada of making a profit of 800 million pesos from the sale of shares in BW Resources Corp.

The feud between Estrada and Yasay came in the wake of Yasay's order to investigate the wild swings in the price of the company's stock in 1999.

Aside from betrayal of public trust, Estrada has also been impeached on charges of bribery, graft and corruption, and culpable violation of the Constitution.

The House of Representatives impeached him in November last year, making him the first Philippine leader to be impeached.

The impeachment was spawned by an accusation by Estrada's estranged drinking and gambling buddy Ilocos Gov. Luis Singson that he pocketed millions of pesos in kickbacks from illegal gambling and provincial tobacco excise tax.

Singson's claims rocked the country's financial markets, driving stocks and currency markets to new lows. It also plunged the country into a fresh political crisis.

COPYRIGHT 2001 Kyodo News International, Inc.