BIZ BUZZ: Time to stock up on ALI shares?

MANILA, Philippines – A lot of companies have been buying back their own shares lately with the belief that the market is undervaluing their stocks and the confidence that they’re all set for future growth.

Real estate giant Ayala Land Inc. (ALI) is one of them, with its P26-billion share buyback program still ongoing.

As of Monday, the company has bought back P20.17 billion worth of its shares from the open market since its buyback program was launched in 2020.

READ: Ayala Land earmarks P25B for stock buyback plan

But this doesn’t seem to be pushing ALI’s share price higher.

Year-to-date, the Zobel family-led firm’s share price has, in fact, plunged by 34.3 percent to P22.70 each. Its free float level stood at 47.27 percent as of Monday afternoon.

This gives us the hint that ALI may need to do more than just buy back its shares and hope for a miracle.

Earlier this month, it unveiled one of its long-planned endeavors that should encourage the public to stock up on ALI shares: A $500-million five-year spending plan for its rebranded hospitality unit.

“The lead up to this launch involved several years of planning – securing sites, and refining market positioning for our new products. We are excited to finally share this all with the market,” ALI leasing and hospitality head Mariana Zobel de Ayala said in a recent press briefing, noting that their shares were, indeed, undervalued.

And would the brand new Ayala Land Hospitality eventually pull up ALI’s share price? “I would hope so,” Zobel said.

That’s what we hope, too. After all, that $500-million spending plan has to bear fruit somehow. —Meg J. Adonis

BPI cheers Eala win

19-year-old Alexandra Eala pleasantly surprised the tennis world when she ousted Australian Open champion and fifth seed Madison Keys during the third round of the Miami Open.

That upset made Eala, the 2022 US Open girls’ singles champion, the first woman from the Philippines to beat a top-10 opponent since rankings began in 1975.

Cheering her on from across the ocean is Jose Teodoro “TG” K. Limcaoco, president of BPI, which is one of the many sponsors of Eala, who has been training in the Rafa Nadal Academy since she was 13.

“We are so proud of Alex. She is a determined young woman who has clear goals and continues to work on improving herself. She epitomizes what we believe in at BPI – We #DoMore,” said Limcaoco.

Aside from the sponsorship, Eala has a special connection with the Ayala-run bank, the third largest in the Philippines, as her parents met at BPI.

So it’s on to the next round, where Eala will face Spain’s Paula Badosa for a spot in the quarterfinals.

Hopefully, her dream run will continue. Tina Arceo-Dumlao