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Sorry to correct you but there will only be 27.74 billion shares out. Pakitingnan pinaka last page ng SMDC tender offer document. It shows the pro-forma EPS computation using 27.74 billion shares as the divisor. It appears the merger process will result in over 5 billion of treasury shares. This accounts for the difference between your 33.3 billion and 27.74 billion.
Why assume growth of only 5% or 10%? SMPH reported 15% growth in Q1 earnings while SM Investments reported that its property businesses (SM Land + SMDC) grew by 18% (pakitingnan na lang Q1 ng SMIC). Seems to me that the minimum growth should be 15%. From 2014 and beyond, growth should accelerate due to synergies, economies of scale, lower cost of debt, etc.
as of now ALI has more locked in sales to the tune of 55.8B pesos that is why it is trading at an unbelievable PE ratio. but sm land has more stable recurring income, if the residential part can ramp up their sales then it will provide the earnings upside that sm management is mentioning and that makes for this as a great company - business model and operations wise.
ANALYSIS | SM takes 'we've got it all for you' to new level with property units' merger
By: Krista Angela M. Montealegre, InterAksyon.com
June 2, 2013 8:29 PM
MANILA - The SM group plans to take on bigger challenges in the region after the consolidation of its property businesses, creating the largest integrated real estate developer in Southeast Asia -- a transaction that analysts describe as a "win-win" deal for all companies involved.
Last Friday, the SM group announced it will undertake a series of transactions worth P279 billion to consolidate its property-related businesses under SM Prime Holdings Inc, heretofore the country's biggest mall developer and operator.
The merged entity -- which will bring into the fold privately-held SM Land Inc as well as listed firms SM Development Corp (SMDC) and Highlands Prime -- will have a market capitalization of $14 billion.
http://www.interaksyon.com/business/631 ... its-merger
After the lifting of the suspension, SMPH joined the red team contibuting a big 6.46% decline. Heavy selling reflected by big volume showed that bearsih sentiment is very strong as of this time. While the 38.2% Fibonacci Retracement level seemed to be a strong support today, this might be broken tomorrow as selling pressure continue to push price lower. Next support will be at 50% or around 17.00 per share.
SM Prime declined by 6.46%. Hit 38.2% Fibonacci Retracement level
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lets take all these computations in perspective.
These are made by investment bankers who would greatly capitalize if the deal pushes through. They are not your usual businessman entrepreneur, they are in it to collect fees.
Mga boss, ano tong valuation na to ng SMPH galing sa disclosure nila? http://www.pse.com.ph/resource/corpt/20 ... 042013.pdf
tama ba yung valuation na nakasulat sa page 73 7.2? Nasa 18.33 - 24.22 daw yung value eh.. di ko rin masyadong naintindihan..
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