TEL - Sinong malakas?
PLDT job cuts highlight focus on broadband business
Recently announced job cuts at Philippine Long Distance Telephone Co's will boost earnings and highlights the company's focus on strengthening its position in the market for broadband internet usage, analysts said. "That was a good decision by management," said Ron Rodrigo, research director of Unicapital Securities. "It will keep the company on track to posting sustainable earnings. It should have a positive impact on its bottom line in the long run," PLDT, with a market capitalization of about 11 B US dollars, is the Philippines' biggest company. It is controlled by Hong Kong-listed conglomerate First Pacific Co and partly owned by Japan's NTT Group. PLDT on Monday said it laid off 575 employees on Sept 15 because of changes in technology and consumer demand. The popularity of the mobile phone was partly to blame. "The impact of technological change is most evident in the case of telephone traffic operators, whose positions comprise the bulk of the redundancies," PLDT said in a statement. "Manpower reduction becomes unavoidable in their case due to the continuous, significant downtrend in operator-assisted national and international long distance telephone calls." The number of operator-assisted international and domestic long distance calls made through PLDT fell to 36.5 M in 2006 from 216 M in 2000, the company said. PLDT spokesman Ramon Isberto told Thomson Financial the company has cut the workforce in its fixed line business to 7,900 from 19,000 since 1995. "But while our fixed line workforce has dwindled, employment in other segments such as the wireless business has been growing," he said. The combined workforce of the subsidiaries of PLDT's information and communications technology unit, ePLDT Inc, which includes business process outsourcing company SPI Technologies Inc and the Ventus Libertad call center group, has jumped to 12,000 in recent years, Isberto said. Consequently, the proportion of PLDT revenue contributed by the fixed line segment has fallen sharply. "The bulk of revenue is now coming from the mobile business, which keeps growing, while revenue growth in the fixed line business has been relatively flat in the last 10 years," Isberto said. The job cuts should improve PLDT's margins, since savings will be derived and its fixed expenses will be reduced substantially down the road, said Jose Vistan, research head of AB Capital Securities.
TEL = 2940 (3.3%)
Wow! Lakas ng (globe) TEL!
Just check out the demand line I drew for TEL... I thought only "basura" / third liners were able to achieve such a steep demand line...
TEL is considered the bluest of the blue chips in the PSEi... This somehow defies the logic of being a blue chip...
If a trader was able to buy TEL at a low of 2270 (8/16) and sold it today at 2945... he could have gained almost 30% in a months time... (TEL also can be traded with margin using citiseconline... hypothetically speaking... you could have doubled your profit... 60% anyone...)
If have some regrets that I got out of TEL... but alas, that is a traders life...
Good luck to all TEL traders! :)
PS: This recent movement by TEL may have been produced by the TEL's decision to cut jobs... though it is heaven sent for TEL traders... I still feel bad that people lost their jobs... I hope this bull run that we have in the country right now will spill over and offer the unemployed better opportunities to provide for their loved ones...
God bless!
Recently announced job cuts at Philippine Long Distance Telephone Co's will boost earnings and highlights the company's focus on strengthening its position in the market for broadband internet usage, analysts said. "That was a good decision by management," said Ron Rodrigo, research director of Unicapital Securities. "It will keep the company on track to posting sustainable earnings. It should have a positive impact on its bottom line in the long run," PLDT, with a market capitalization of about 11 B US dollars, is the Philippines' biggest company. It is controlled by Hong Kong-listed conglomerate First Pacific Co and partly owned by Japan's NTT Group. PLDT on Monday said it laid off 575 employees on Sept 15 because of changes in technology and consumer demand. The popularity of the mobile phone was partly to blame. "The impact of technological change is most evident in the case of telephone traffic operators, whose positions comprise the bulk of the redundancies," PLDT said in a statement. "Manpower reduction becomes unavoidable in their case due to the continuous, significant downtrend in operator-assisted national and international long distance telephone calls." The number of operator-assisted international and domestic long distance calls made through PLDT fell to 36.5 M in 2006 from 216 M in 2000, the company said. PLDT spokesman Ramon Isberto told Thomson Financial the company has cut the workforce in its fixed line business to 7,900 from 19,000 since 1995. "But while our fixed line workforce has dwindled, employment in other segments such as the wireless business has been growing," he said. The combined workforce of the subsidiaries of PLDT's information and communications technology unit, ePLDT Inc, which includes business process outsourcing company SPI Technologies Inc and the Ventus Libertad call center group, has jumped to 12,000 in recent years, Isberto said. Consequently, the proportion of PLDT revenue contributed by the fixed line segment has fallen sharply. "The bulk of revenue is now coming from the mobile business, which keeps growing, while revenue growth in the fixed line business has been relatively flat in the last 10 years," Isberto said. The job cuts should improve PLDT's margins, since savings will be derived and its fixed expenses will be reduced substantially down the road, said Jose Vistan, research head of AB Capital Securities.
TEL = 2940 (3.3%)
Wow! Lakas ng (globe) TEL!
Just check out the demand line I drew for TEL... I thought only "basura" / third liners were able to achieve such a steep demand line...
TEL is considered the bluest of the blue chips in the PSEi... This somehow defies the logic of being a blue chip...
If a trader was able to buy TEL at a low of 2270 (8/16) and sold it today at 2945... he could have gained almost 30% in a months time... (TEL also can be traded with margin using citiseconline... hypothetically speaking... you could have doubled your profit... 60% anyone...)
If have some regrets that I got out of TEL... but alas, that is a traders life...
Good luck to all TEL traders! :)
PS: This recent movement by TEL may have been produced by the TEL's decision to cut jobs... though it is heaven sent for TEL traders... I still feel bad that people lost their jobs... I hope this bull run that we have in the country right now will spill over and offer the unemployed better opportunities to provide for their loved ones...
God bless!
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