Globe (GLO) Increases Capex to $1B (w/ a Technical Overview)
Jaycee De Guzman

Jaycee De Guzman

Hi! I'm Jaycee De Guzman. I have helped thousands of Filipinos trade independently and execute investment plans profitably through the Stock Signals Philippines. I have also helped thousands of international clients and businesses from 100+ countries build their online presence and boost their sales through iPresence Business Solutions. Read my About Me page.
Jaycee De Guzman

Globe has initially set its Capital Expenditure Budget to $750M. $350M was already spent in the first half of the year. Globe has revised its Capex guidance to $1B for this year to match its competitor PLDT. This is also related to the joint acquisition with PLDT of San Miguel’s telecommunication business after talks with TELSTRA fell apart.

“For this year, we have the authority to spend over a billion dollars. It will be (spent) for the balance of the year,” Alberto de Larrazabal, Globe’s Chief Commercial Officer, said in an interview with Malaya Business Insight at the sidelines of the Globe Enterprise Innovation Forum at SMX in Pasay.

This Capex hike would be used to roll-out San Miguel’s frequencies including 700 Mhz, 1800 Mhz, 2300 Mhz, and 2600 Mhz.

Globe has committed to the National Telecommunications Commission (NTC) that it would be able to expand the coverage of its voice, text and data services to 95% of municipalities by the end of 2018 with the additional spectrum from San Miguel.

This commitment was part of the conditions set by NTC in approving the co-use of San Miguel’s telecom assets.

Globe expects about 30 percent of its over 2,200 cell sites to be upgraded using the additional spectrum from the co-use agreement by year-end. The majority of its Long-Term Evolution (LTE) sites will cover major business districts and highly urbanized and populated areas in the country, including Metro Manila, Metro Cebu, and Metro Davao.

As of last month, Globe has around 250 LTE-capable sites using the 700 MHz and expects to double this to 500 sites by year-end.

Revenues from call and text services have been declining both for Globe and PLDT due to the rise of networking sites and online messengers which use data instead of prepaid/postpaid load credits. Both players are now realigning their respective companies to cope with the recent changes in market demand.

In the first half of 2016, Globe’s mobile data revenues increased from 12.1B pesos a year ago to 17.8B pesos this year. This equates to a 46% period-on-period revenue increase.

As of 2:06pm today, the number of participants (brokers) that has registered a 100% buying and selling activity is tied at 11. MACQUARIE leads the confident sellers. CREDIT spearheads the confident buyers.

  • 11 out of 32 participants or 34.38% of all participants registered a 100% BUYING activity
  • 11 out of 32 participants or 34.38% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 1907.8754
  • Top 10 Players’ Selling Average: 1909.8753

GLO - Top 10 Players - October 19, 2016v1

On a 30-day trading period, GLO is on a Net Foreign Selling worth PHP202,221,075.00.

GLO - Foreign Fund Flow - October 19, 2016v1

Following my proprietary indicator for a stock’s risk level, I say that GLO is still a low-risk stock. For those who have just started investing recently, stick with low-risk stocks. Nonetheless, not all low-risk stocks are worth investing. Risk level is not the only factor that you should consider. You’ll learn more about those other factors by reading my other articles. I’ve written 3,000+ articles on my website.

GLO - Volatility - October 19, 2016v1

It is very rare to find liquidity issues on an index stock. GLO has no liquidity issues.

GLO - Volume - October 19, 2016v1

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