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Ayala Land bullish
By Jenniffer B. Austria | Posted on Dec. 03, 2012 at 12:00am


Property giant Ayala Land Inc. expects to generate P7 billion in sales from the first tower of the newly launched Garden Towers project at Ayala Center in Makati City.

Ayala Land Premier head Jose Juan Jugo said in a press briefing the company already sold P2.1 billion worth of residential of units in the first tower during the initial launch.
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Comments

  • As part of landbanking, heard that ALI edged out other developers in a bid for a property somewhere in Quezon City, owned by a troubled shoe manufacturing company. :lol:

    Other metro land up for grabs.
  • Thanks Sir Ducati!

    hehe... nice news!
  • taas ng bili ko dito 27.65 :(
  • We write in response to your letter dated January 17, 2013 requesting Ayala Land, Inc. ("the Company") to clarify and/or confirm the following news articles: 1) "ALI, PRCI Eye Cavite Development" posted in The Manila Bulletin Newspaper Online posted on January 16, 2013. The article reported in part that: Fresh from the launch of the redevelopment of the Sta. Ana racetrack, Ayala Land Inc. and Philippine Racing Club Inc. are in discussion for another possible partnership for the latters 65 hectare property in Naic, Cavite. According to PRCI president Simeon Cua, only 15 hectares of the property has been used for their relocated racetrack so far while the remaining 50 hectares has development potential for commercial or industrial uses.

    Asked if they will again partner with ALI for the development of the 50 hectares, Cua said "its always possible-depending on the area. But we have not come up with the plan yet." For his part, ALI president Antonino Aquino said "we're still in the process of discussions. I don't know where I can be quoted on that yet since we still don't know what the plans are" adding that "I will have to look at that particular facility." But Aquino noted that "the feeling is very complementary. We see there is a shared value system between the two groups. We're both interested in the long-term development of Makati in particular. That's where we started, that's where Ayala started. This has branded Ayala from maybe 60 years ago. Sta. Ana is also a hundred years. It's a perfect partnership." 2) "ALI to tap bond market to fund projects" posted on the Philstar.com on January 17, 2013.

    The article reported in part that: Property giant Ayala Land Inc. (ALI) will tap the bond market this year to jumpstart the development of large parcels of land acquired recently.
  • From Boss Basurero

    ALI - AYALA LAND, INC.

    LAST TRADE PRICE = PHP 27.7500
    LAST TRADE DATE: 01/25/13

    P/E RATIO TEST:

    2009 Earnings-per-share = PHP 0.3100
    2010 Earnings-per-share = PHP 0.4100
    2011 Earnings-per-share = PHP 0.5500
    2012 Interim Earnings-per-share (9 months ending September 2012) = PHP 0.5000

    Average earnings-per-share (based on the past 3 years and 3 quarters) = PHP 0.4842
    Average price earnings ratio (based on the past 3 years and 3 quarters) = 57.31

    Result of Graham's price-earnings ratio test: FAILED
    Benjamin Graham recommends current price no more than 15 times average earnings.
    However, P/E <15 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

    PRICE-TO-BOOK RATIO TEST:

    Total Equity = PHP 89,792,000,000
    Outstanding Shares = 13,751,975,922
    Book-Value per Share = 6.53
    Price-to-Book ratio (PB) = 4.25

    Result of Graham's price-to-book ratio test: FAILED
    Graham recommends that current price should not be more than 1.5 times the book value last reported.
    However, P/B <1.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

    Moreover, average earnings to book ratio (similar to return on equity) = 7.42%

    NET-WORKING-CAPITAL OR "RARE BARGAIN" TEST:

    Current Asset = PHP 111,046,000,000
    Total Liabilities = PHP 117,250,000,000
    Net Working Capital = PHP (6,204,000,000)
    Current Asset to Total Liabilities ratio = 0.95

    * By "net-working-capital", Graham means current assets (such as cash, marketable securities, and inventories) minus total liabilities (including preferred stock and long-term debt).

    Result of Graham's net-working-capital or "RARE BARGAIN" test: FAILED
    Total liabilities is greater than current asset.
    Graham recommends issues with positive net-working-capital.

    Moreover, total liabilities is greater than equity.
    Total liabilities to equity ratio = 1.31
    This company is relatively highly leveraged.

    GRAHAM'S "BLENDED MULTIPLIER" TEST:

    P/E = 57.31
    P/B = 4.25
    P/E*P/B = 243.59

    Result of Graham's "blended multiplier" test: FAILED
    Graham suggests that the product of P/E and P/B should not exceed 22.5.
    However, P/E*P/B <22.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

    LIMITATION OF ANALYSIS:
    1. EPS calculation does not isolate "extra-ordinary income".
    2. Analysis does not cover earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).
    3. For future plans and prospects, read below reference.

    REFERENCE:

    http://www.pse.com.ph/resource/corpt/20 ... ep2012.pdf
    http://www.pse.com.ph/resource/corpt/20 ... pr2012.pdf

    DISCLAIMER:

    The author hereby expressly disclaims any responsibility for error, omission or inaccuracy in the information, misinterpretation and any all loss, disappointment, negligence or damage caused by reliance on this information.

    The author shall not be responsible or liable for any trading or investment decisions made based on this information.
  • Another stock that shows an indecisive mood at market's closing. ALI was up few notches but settled with only a meager gain at the closing. Is it bound to correct soon? Although a Doji is not that reliable with regards to trend reversal, one should still keep guard with the position. Psychological resistance at 28.
  • ALI Daily Charts

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  • ALI Weekly Charts

    ALI_Weekly.png
  • ALI Monthly Charts

    ALI_Monthly.png
  • Another stock that shows an indecisive mood at market's closing. ALI was up few notches but settled with only a meager gain at the closing. Is it bound to correct soon? Although a Doji is not that reliable with regards to trend reversal, one should still keep guard with the position.

    Psychological resistance at 28.
  • Buyer/Seller Summary

    ALI.png
  • Weekly Charts

    ALI.png
  • Valuation Table (right click and save image as)

    ALI.png
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