Malaya (05.15.08)
“One has to wonder: Has the OMB under Manzano been closing down outlets of pirated media of friends close to Congressman Tieng?”
by Ducky Paredes
One need not wonder that Movie Star and Television host Optical Media Board Chairman Edu Manzano is again under attack in Congress. This comes up every time that there are budget hearings. What is refreshing is that the ones who are upset with Edu are always those who are, like Edu, involved in show business. This must mean that he is doing a good job.
Before Edu’s volunteer nemesis was Senator Bong Revilla. Presently, it is another showbiz person, Part-list Rep. William Tieng of the Buhay Party who has been overly critical of Manzano. One has to wonder: Has the OMB under Manzano been closing down outlets of pirated media of friends close to Congressman Tieng?
Perhaps, after all, Congressman Tieng scores the OMB under Manzano as being ”selective” in their raids on these outlets.
Is it possible that the incessant OMB raids are hurting some people close to him?
The lawmaker also again brings up the accusation that Edu has not been attending to the budget hearings. Yet, if he asks around, he will see, from his own staff, the autographs and pictures of Edu for each time that he goes to Congress. According to OMB Executive Director Atty. Rosendo Meneses, the records will show that Chairman Manzano has been in Congress each time his presence was needed.
The Buhay Party representative also says that the OMB is “inefficient.”
Contrary to Congressman Tieng’s claim, the OMB has scored very significant gains in the fight against piracy in the country, backing up this claim with the following figures:
In 2007, OMB conducted 2,526 operations and seized 4.8 million units of pirated optical discs estimated to be worth P1.12 billion.
The OMB filed 22 criminal charges against those arrested during the raids, plus some 2,500 administrative complaints nine of which involved CD replicating machines used in the production of counterfeit CDs.
Of the total 573 raids conducted by law enforcement agencies against piracy, 77 percent or 443 were made by the OMB.
The OMB accomplishments for 2007 formed a major part of the basis for the Special 301 Reports issued first week of May 2008 by the United States Trade Representative (USTR) where the Philippines was commended for being one of only seven countries that showed significant progress in implementing controls on optical media production.
Equally impressive results against piracy in numerous OMB operations in prior years led the US Trade Representative in 2006 to scratch the Philippines from its Priority Watch List and place it on the Ordinary Watch List. The Priority Watch List contains the names of countries that have earned notoriety for rampant piracy and widespread violations of Intellectual Property Rights.
As for Manzano not attending OMB budget hearings, perhaps Rep. Tieng can help fight piracy by convincing his fellow legislators to increase OMB’s P25 million budget. He does not need Manzano’s presence to do that.
As it is, most of that money goes to Salaries, maintenance and administrative expenses. OMB’s budget for enforcement operations is less than P100,00 monthly.
That the OMB can still do its job at all is a feather in Edu Manzano’s cap.
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If you were not able to go for the Initial Public Offering (IPO) of San Miguel Beer, Inc. (SMB) which was available Monday, it is too late for you. You missed out on a good one. Today, it is doing P8.60 from the IPO price of P8.00.
Following a week-long domestic offer period and two weeks of international road shows, San Miguel Beer Inc, (SMB) San Miguel Corporation’s crown jewel attracted substantial interest, with the local tranche oversubscribed a day before the close of subscriptions on 05 May.
SMB may turn out to be the country’s biggest IPO this year. At its IPO price, securities company IGC Securities, Inc. placed SMB’s P/E of 13.4x in 2008 at a 20% premium over the market’s P/E of 11.2x.
The beer business accounts for around 40% of San Miguel Corporation’s (SMC) operating profit.
Citing the company’s track record of profitability, its reasonable value relative to the market, its consistent earnings growth and rich dividend yield, IGC Securities, Inc. had recommended SMB, as solid long-term investment, saying that the IPO “will unlock SMB’s hidden value. . .as it is poised to benefit from greater management once it becomes a stand-alone public company.”
In its report sent to investors, IGC Securities, Inc. said, “SMB offers a pure-play in the best part of SMC, without the overhang from its non-core businesses.” Furthermore, it said “the historical data that show the operational improvements… [will] eventually lead to market out-performance in the next 2-3 years.”
The securities firm’s strong “long-term buy” recommendation is also based on a promised rich dividend yield of 6.5%, 44% higher compared to the market’s average yield of 4.5%. “SMB’s dividend policy is to payout 100% of its earnings,” the report said.
Of the shares offered, 90% percent are secondary shares belonging to SMC and ten percent are new shares issued by SMB. Only the proceeds from the 10% new shares will go to SMB.
According to an analyst’s report: “Though domestic beer volumes have been flat from 2005-07 at 13mn hectoliters/year, revenues have been driven by price increases while margins buoyed by cost control.
“Going forward, SMB aims to increase the size of the Philippine beer market and its already commanding 95% share of the market by deepening its geographic coverage (distribution) and increasing product visibility (advertising and promotion).”
Watch for more IPO’s as SMC sheds off other stand-along companies of the group – packaging, bottling and others.
It’s nice to see that the Boss – Danding Cojuangco – will eventually be riding off into the sunset with what has become his greatest business achievement poised for even greater success. Comfortable in the SMC nest, the other companies might have been stunted. On their own as stand-alone companies, they must grow wings.
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hvp 05.14.08)
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