Biz Buzz: Chinoys scammed again
It’s sounding almost like some kind of financial scam has to hit the affluent Binondo Chinese community every now and then.
The latest edition of this recurring story unraveled only last week, according to our sources, when a Filipino-Chinese “forex trader” absconded with the investments of several family members and friends.
“Forex trading?” Well, strictly speaking, the actual trading of dollars in Binondo has slowed down in recent years after the relative stability of the peso against the US dollar virtually eliminated the exchange rate differential between the formal market and the so-called “gray market.”
Apparently, what is called “forex trading” nowadays is somewhat of a misnomer as it involves trading of highly leveraged (and highly volatile) foreign exchange futures contracts.
These contracts—which are basically sophisticated derivatives contracts—can deliver large gains to the clients, but can also result in devastating losses once the markets move against the investor (something that can happen in seconds).
There is no formal futures exchange in the Philippines so investments of this nature are traded by locals online in virtual exchanges offshore.
It is this kind of activity that this Chinoy “trader”—whose initials are NT—was allegedly engaged in. After suffering massive losses, NT (who is said to be related to the owner of a popular Chinese restaurant in Greenhills) supposedly “disappeared” and is now in hiding.
The damage to his irate and despondent “investors” has been estimated to be close to P1 billion. Ouch.—Daxim L. Lucas
PLDT trumped by Smart (Gilas, that is)
Philippine Long Distance Telephone Co. was supposed to hold a special stockholders’ meeting Tuesday to approve a scheme aimed at addressing the recent Supreme Court ruling against its foreign ownership structure.
At the last minute, however, the company declared that it had failed to muster the required quorum to hold the meeting (where the plan to issue new preferred shares would have been put before its shareholders).
No quorum? No rush, as an appeal with the Supreme Court is still pending. Of course, it didn’t help that PLDT chair Manny Pangilinan was spotted in Wuhan, China, cheering on the Smart Gilas basketball team (of which he is the prime patron).
And before anyone accuses the telco tycoon of prioritizing basketball over business, note that his timely intervention in the citizenship issue of two key Gilas Fil-Ams helped the team secure a sweet “come-from-behind” win over Jordan.
Of course, the citizenship certification was helped along by the Department of Foreign Affairs headed by Secretary Albert del Rosario, himself a former PLDT director.—Daxim L. Lucas
The golden quest
Stock pundits in search of gold mining plays have recently turned to United Paragon Mining Corp. on prospective windfall from the change in mining fortunes of businessman Alfredo Ramos. Since August, trading on UPM has been brisk on expectations that, after getting tycoon Henry Sy’s group to invest in Atlas Consolidated Mining & Development Corp., Ramos will next work on rekindling UPM’s principal mining project at Paracale, Camarines Norte. Based on latest geological report, this gold mine contains 1.4 million ounces of high grade gold (7 grams per ton).
UPM on Tuesday signed a convertible loan agreement with Alakor Corp. for the P250 million needed by the company to revive the mining project. The company suspended drilling in this project in 2003 due to serious depletion of economic reserves, high operating costs and low metal prices.
Since the situation has obviously changed, Ramos (who also heads the National Bookstore chain) is now more confident of putting more chips into mining.
Meanwhile, there are also expectations that Ramos may share management of Atlas with the SM group. Although his group still owns 45 percent of Atlas, the SM group will be able to raise its stake (from 17.9 percent) once Banco de Oro converts some IOUs into Atlas equity. Asked about this, SM Investments chief finance office Jose Sio said that the Ramos family would continue to have management control of Atlas. Mining is a “portfolio” rather than a “core” interest for SM, Sio often says. As such, he said SM and BDO will only play a supporting role in Atlas’ management.—Doris C. Dumlao
Backing PAL
Here’s something you don’t see every day: The head of San Miguel Corp. speaking authoritatively about Philippine Airlines.
So, is the conglomerate on the verge of slugging it out with its rival, the PLDT group, for control of Philippine Airlines?
The answer is an emphatic “no” from SMC president Ramon Ang. Yes, he is talking to PAL’s “Kapitan,” tycoon Lucio Tan, he said, but stressed that talks were merely brainstorming sessions.
Ang said he was a “very close” friend of the Tan family and, as such, was willing to help secure a partnership with a “famous” foreign airline.
Tan is “awash in cash” and “doesn’t really need anyone’s money” to help prop up the flag carrier, its labor woes notwithstanding, the SMC chief added.
“I am interested in aviation and the Tan family is a very good friend of mine,” Ang said. “We often talk about PAL, so whatever way I can do to help him, I’m going to do it.”
Unequivocal support? You bet.—Amy Remo
ALI comes to Tagaytay
After letting other property developers gain solid footholds in and around Tagaytay City, Ayala Land has apparently decided that enough is enough, and is now jumping into the increasingly crowded fray.
According to our source, the country’s largest real developer by market value is set to launch its first condominium project in the picturesque resort town south of Metro Manila next month.
The mixed-use development—to be located across Discovery Country Suites—the yet-unnamed project will be marketed under the Alveo brand, indicating that it is targeted toward the middle-income buyers.
The multi-phase project will eventually have leisure and mid-rise condos, a retail section and a condotel, and about 150 units will be offered in the initial marketing salvo.
Never mind, of course, that the Ayala Land project will be situated on the other side of the road from the ridge (normally lower priced properties than those situated on the other side, right on the ridge). The structures will be high enough to give residents commanding views of Taal Lake and beyond, we’re told.—Daxim L. Lucas
Nickel looking good
The local nickel mining industry seems to be off to a good third quarter run this year, and companies like Marcventures Holdings Inc.—through its subsidiary Marcventures Mining and Development Corp.—are eager to send out more high-grade nickel ore shipments.
According to company sources, another shipment of nickel is ready to sail. And should Marcventures continue shipping at this pace, it should be able to send out a total of six shipments by yearend totaling 300,000 wet metric tons of high grade nickel.
Last month, company officials confirmed that it had completed its first shipment of 55,600 wet metric tons of high-grade nickel ore from its mine in Surigao del Sur to Zhanjiang Port, China, at $54 per ton.
This is, of course, good news for Marcventures, especially since nickel prices on the world market continue to be “robust” (to put it conservatively).
Will we hear the words “record profits” this year? Possibly.—Daxim L. Lucas
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