By Lourdes O. Pilar, Researcher
SPECULATION has made the Premiere Horizon Alliance Corp. (PHA) stock one of the most actively traded last week following their disclosure on plans to acquire companies engaged in real estate and tourism hospitality in the next two years – just a week after the news of the company securing P15-billion worth of funding from a Qatar-based investment firm.
Data from the Philippine Stock Exchange showed a total of P2.970 billion worth of 2.04 billion Premiere Horizon shares having exchanged hands on the trading floor from Jan. 28 to Feb. 1.
Shares in Premiere Horizon closed at P1.62 apiece on Friday, up 0.62% from the previous day and 54.29% on a week-on-week basis. For the year, company’s shares were up by a whopping 390.91%.
“The stock traded from a [week-low] of P1.07 to a high of P1.77 fueled by speculation as the investors continue to digest the 250-million euro (P15 billion) funding of Sama Global Investments that will be invested in real estate, tourism, infrastructure construction, power generation, financial services and other related undertakings of Premiere Horizon…,” said Unicapital Securities, Inc. certified securities representative Cristopher Adrian T. San Pedro.
Luis A. Limlingan, managing director at Regina Capital Development Corp., said the loan facility “boosted” the company’s valuation and prospects.
“Specifically, Premiere Horizon can now focus on real estate over the next couple of years beginning with a resort in Palawan,” Mr. Limlingan said even as they are still updating their forecasts and assumptions for the company.
Shares in Premiere Horizon have been increasing since the disclosure of Sama’s investment in the company was disclosed last Jan. 18. The loan facility will have a term of nine years with fixed interest of 1.25% per annum payable yearly. By 2021, Sama will have the right to convert the facility, in whole or in part, into ownership of up to 60% in the company, in accordance with the country’s foreign ownership laws and regulations.
“It is believed that starting 2019 until 2021 Premiere Horizon will commence with the development of its hotel and commercial center at Nagtabon beach [in] Puerto Princesa, Palawan. The second phase of the 100 hectare North Cove development plan is also expected to push through and is believed to be in partnership with Thai hospitality firm Dusit Group,” Unicapital’s Mr. San Pedro said.
Moreover, the company is currently working on the execution of its master plan for Nagtabon beach in Palawan. The company is building two hotels and a four-phased commercial center in the area as part of the project’s initial phase.
The second phase will include two five-star hotels on two beaches in the 100-hectare North Cove Development.
The third phase, meanwhile, involves building a business hotel, as well as a convention center to take advantage of the Meetings, Incentives, Conventions and Exhibitions (MICE) market in Palawan.
Premiere Horizon is an investment holding company that “focuses on projects that invigorate the countryside.” Latest financial results show the company having net losses attributable to the equity holder of the parent in the first three quarters of 2018 (-P74.191 million) and 2017 (-P69.150 million).
For this week, Mr. San Pedro of Unicapital sees Premiere Horizon trading between a support level of P1.43 per share and a resistance level of P1.77 per share in the short-term “with the possibility of testing P1.84 and P2.02 if it holds above P1.50.”
“Given the stock remains parabolic and prone to profit taking, I strongly recommend to exercise extreme caution in trading the stock,” noted Mr. San Pedro.
For Regina Capital’s Mr. Limlingan, he expects support to be at P1.40 and resistance of P1.80.
