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Re: bigmellons post# 6012

Friday, 04/28/2006 8:37:52 PM

Friday, April 28, 2006 8:37:52 PM

Post# of 56764
Here is my opinion, take it for what you will. I have been looking into the Philippine's debt market. Their bonds are doing well, and interest rates are somewhat rising. (check yahoo!asia business news for articles) They are linked closely with the Yuan and chinese rates. As china is going to tighten money and interest rates, the rates will go up in the Philippine's government bonds, and we know that when interest rates are higher in the U.S. suchs as t-bills go up, corporate bonds generally trend up also (within reason of course, the creditworthiness of the company and other factors come into play). With this trend, and seeing as though PAIM wont begin operations until later, they should issue bonds to willing investors, they wont have to be paid back until a way later date, maybe after revenues begin to come in. Right now they have financed only with stocks, and obviously in this market people want quick returns, and bash the non-liquid state of the company. With funds raised from the bonds, they could use some for operations, and also buy back shares and consolidate, it isnt as messy as a reverse split, they are attracting bond investors that are ok with the time frame, the PPS will go up (in theory) attrack investors, as well as the value of the shares PAIM owns goes up and it is plausable for them to sell some off to gain capital, without the extreme dilution of splits.

All in my own Opinion, Not a Recommendation!!! But let's try to make some money!