Philex - to declassify

As expected, Philex Mining will declassify its A and B shares. Please check:

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=03&dd=27&file=11

Please check my past post on Philex

http://bigbigtrade.blogspot.com/2006/03/me-bad-why-i-missed-out-on-philex.html

With this issue out of the way, investors can now focus on the fundamentals of Philex rather than speculating whether the shares will be declassified or not. However, i do believe that the declassification is a good move as this will increase the free float of the stock. Foreign investors will be more inclined to invest in the counter.

Philex is the blue-chip amongst the mining stocks. The company is expected to earn P2.0bn this year. This means that the stock is trading at roughly 4.0x EV/EBITDA. We should expect some upside in the coming months.