Excerpts from news articles about some Philippine listed companies are shown below answer the questions after each excerpt. a. The following information from a business article titled “PLDT cuts full-year profit forecast after third quarter results disappoint” was posted on Interaksyon.com, [Date accessed: March 11,2015] on November 4, 2014.From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to Php 7.9 billion from Php 9.2 billion in the same period in 2013. “Our third-quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk ‘N Text undertook to match or neutralize price aggregation on the prepaid front, effectively lowering price points for the same level of activity,” Manuel V. Pangilinan, PLDT chairman said. “Based on this market assessment and on information available to the company, PLDT is revising its profit guidance for the full-year to ₱37 billion from ₱39.5 billion previously disclosed,” Mr. Pangilinan said. How do you look will PLDT investors react to this piece of information? What do you think will happen to its stock price? Explain your answer. b. On November 5, 2014, the following information from an article titled “Puregold earning surge in 3rd quarter” was posted on ABS-CBNnews.com [Date Accessed: March 11, 2015]: The company’s third-quarter earnings for 2014 surged to ₱1.55 billion up 55% from the same period last year. This brought the company’s 9-month income to ₱3.007 billion in the same period in 2013. How do you think will the stock market react to this piece of news? What do you think will happen to Puregold’s stock price after the announcement?
Excerpts from news articles about some Philippine listed companies are shown below answer the questions after each excerpt. a. The following information from a business article titled “PLDT cuts full-year profit forecast after third quarter results disappoint” was posted on Interaksyon.com, [Date accessed: March 11,2015] on November 4, 2014.From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to Php 7.9 billion from Php 9.2 billion in the same period in 2013. “Our third-quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk ‘N Text undertook to match or neutralize price aggregation on the prepaid front, effectively lowering price points for the same level of activity,” Manuel V. Pangilinan, PLDT chairman said. “Based on this market assessment and on information available to the company, PLDT is revising its profit guidance for the full-year to ₱37 billion from ₱39.5 billion previously disclosed,” Mr. Pangilinan said. How do you look will PLDT investors react to this piece of information? What do you think will happen to its stock price? Explain your answer. b. On November 5, 2014, the following information from an article titled “Puregold earning surge in 3rd quarter” was posted on ABS-CBNnews.com [Date Accessed: March 11, 2015]: The company’s third-quarter earnings for 2014 surged to ₱1.55 billion up 55% from the same period last year. This brought the company’s 9-month income to ₱3.007 billion in the same period in 2013. How do you think will the stock market react to this piece of news? What do you think will happen to Puregold’s stock price after the announcement?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Excerpts from news articles about some Philippine listed companies are shown below answer the questions after each excerpt. a. The following information from a business article titled “PLDT cuts full-year profit forecast after third quarter results disappoint” was posted on Interaksyon.com, [Date accessed: March 11,2015] on November 4, 2014.From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to Php 7.9 billion from Php 9.2 billion in the same period in 2013. “Our third-quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk ‘N Text undertook to match or neutralize price aggregation on the prepaid front, effectively lowering price points for the same level of activity,” Manuel V. Pangilinan, PLDT chairman said. “Based on this market assessment and on information available to the company, PLDT is revising its profit guidance for the full-year to ₱37 billion from ₱39.5 billion previously disclosed,” Mr. Pangilinan said. How do you look will PLDT investors react to this piece of information? What do you think will happen to its stock price? Explain your answer. b. On November 5, 2014, the following information from an article titled “Puregold earning surge in 3rd quarter” was posted on ABS-CBNnews.com [Date Accessed: March 11, 2015]: The company’s third-quarter earnings for 2014 surged to ₱1.55 billion up 55% from the same period last year. This brought the company’s 9-month income to ₱3.007 billion in the same period in 2013. How do you think will the stock market react to this piece of news? What do you think will happen to Puregold’s stock price after the announcement?
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