Updates on Philippine Mining and Gaming Sectors

Average investors typically depend on their own hunches and gut feel, making trades based on what they heard from the grapevine or what they read in Facebook stock investing groups.

In contrast, smart investors read and update themselves by relying on credible sources, conduct their own evaluation of market events and their impact on companies, and ultimately make stock trades based on informed decisions.

Smart investors, for example, are aware of the following issues and are currently wondering: Why are mining stocks seemingly surging in prices nowadays? What about the Philippine gaming sector; are there better prospects now that the tax guidelines have been finalized?

Knowledge of such things that are currently the talk of the town is what differentiates an average investor from a smart stock investor. So that you will be informed, we provide to you below snippets of what you must know about recent developments in the local mining and gaming sectors.

Update on the Philippine Mining Sector

World nickel prices continue to surge on the back of: (1) a ban in Indonesia, one of the world’s largest suppliers, of raw nickel ore exports; and (2) increased tension in Russia that could lead to sanctions to companies such as Norilsk Nickel, a top nickel producer.

A possibility of massive supply deficits in the next two to three years looms because of such events. Trading of high grade raw nickel has already doubled in the last two months from about $50/WMT in March to $102/WMT as of 12 May 2014.

The upcoming July 9, 2014 Indonesian elections also presents a critical juncture in the industry as a change in leadership may lead to either a change in policy or maintenance of the status quo. If the ban remains in place beyond the presidential elections, this could surely affect the supply of nickel worldwide, with eventual impact on prices.

How will this development affect local mining stocks such as Nickel Asia Corp. (NIKL) and Marcventures Holdings Inc. (MARC)?

Update on the Philippine Gaming Sector

On the Philippine gaming front, meanwhile, the Philippine Amusement and Gaming Corporation (PAGCOR) has finalized its agreement with four locators of its highly touted Entertainment City project in Pasay, to cushion the impact of the imposition of a 30% corporate income tax by cutting license fees charged to gaming operators.

The Bureau of Internal Revenue (BIR) recently issued Memorandum Circular 33-2013 requiring PAGCOR licensees to pay 30% corporate income tax instead of the 5% franchise tax on gross gaming revenue.

As a temporary measure to cushion the impact of the new tax regulation, PAGCOR agreed to adjust the licensing fees on mass market, slot machines, and ETGs to 15% from 25%, while taxes on VIP will be lowered to 5% from 15%.

The 4 companies that will operate casino resort complexes in the Entertainment City include Travellers International Hotel Group (RWM)’s Resorts World Bayshore, Bloomberry Resorts (BLOOM)’s Solaire Manila, Melco Crown (Philippines)’s City of Dreams Manila, and Tiger Resorts Leisure and Entertainment’s Manila Bay Resorts.

Is the new PAGCOR tax resolution a boon or bane for Philippine gaming companies?

PinoyInvestor Stocks Reports

The answers to the questions above are addressed in the Special Reports published by PinoyInvestor, a local stock market resource, with official partnerships with seven (7) of the top stock brokerage companies in the Philippines.

PinoyInvestor’s Stocks Reports are based on the stock recommendations and company reports prepared by 7 partner stockbrokers, namely:

  1. First Metro Securities
  2. Angping & Associates Securities
  3. AB Capital Securities
  4. Unicapital Securities
  5. DA Market Securities
  6. 2Trade Asia Corp.
  7. Regina Capital Development Corp.

No other local stock market resource has this extensive network of partners that provide credible and high-quality information.

The weekly PinoyInvestor Stock Reports contain, among others, feature articles such as the Mining and Gaming sector updates above, technical analyses for short-term traders, and Buy/Sell/Hold recommendations plus Target Prices for 60 stocks — designed to help Filipinos make smart investing decisions.

Sign up for FREE with PinoyInvestor and start leveling up from being an average investor to a smart stock investor!

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