Opportunities for non op lending company

Nation building via learning and being the best in business

When there were news that there were disenfranchised (for the secondary license) lending investor, I checked with the scion running the company if we were included.   The feedback was that it was non op for several years, and declared at SEC.

Now I told in the meeting last night that this lending investor can ride the fintech revolution   The payment apps, since are not authorized by BSP cant take advantage of the opportunity  to take in deposits or make advances with interest.

For the deposit taking side, .....

For the lending side we can have an app that takes in borrowers on line through the fintech and offer 24 hour approval loans, no visit, other than they are verifiable and of good standing  (even in the internet -  we will go to that later)

We can go into the details later.  We can start with our existing customers

Also ousted from the company she founded

Nation building via learning and being the best in business

An elementary school classmate, now fmr President of the Company she founded is aghast over her non election as Board Member and ultimately as CEO.  It was the company she founded.   My wife joked that they did not request mentoring from me, or that did they really take up MBA as required by law if you are going to be head of such a health unit.  Yes they did  But they simply dined the professor so as not to make the study hard.  This post did not fall for that.  Yes I could see through that but they have to comply with academic standards.   They had to study and work hard.

Now I researched why this happened   It seemed that their adversary purchased a lot of common stocks and they became the majority.  Their group had the majority and elected the board, and the board elected their President of choice.

Lessons:

1.  The right of first refusal should be exercised to  prevent loss of control majority;

2.   The Pres should really have defended watched what was going on had security strictly observed;

3.  May be they did not observe  the protocol of some such unit that only founding shareholders to elect board, and other common as non voting  They had a smart lawayer employed to devise such a strategy to oust my classmate.  

Huhuhu.  I idont know how  she will ever get back to power.   fIt will be a long legal battle to be fought in courts, not in the board room

We were offered an existing project but priced way too high but does not show good history of cash flow

Nation building via learning and being the best in business

Our group was offered an existing project in Southern Tagalog region and these were some of our salient findings/observation:

1.   The seller wants to price it at P15,000/sm of the developed area;

2.   There are four similar projects in the area;

3.  Ite is located in populated area 160,000 but mostly dormitory residents in an industrial zone in nearby PEZA town  That means 50% of that number of 80,000 would be active buyers or 20,000 households    30% of that would be active buyers or only 6,000.   Inventories in the locality would be about 25,000.   Inventories is 5x of possible demand, hence the very low sales

   

4.  The project has sold only 112 u nits since 2021;   thats roughtly 30 year.   This year only 7!!!  How come.  Price too high

It was reported that owner who is a US resident plans to go back to the state

Negotiation points:

1  Price  -  At 15,000/sm of developed area, the pricing would be roughtly P200m.    Only 20% of the project is built up

      PV, DCF pricing for next 20 years would place its selling price at only P30M!

2.  Why is the owner selling?   Low sales

3.  Why is the number of sales low?   Bad/non existing marketing?   

4.  What is unique about the product?

The business is going to be challenging for both the prospective buyer and seller.  It may not be sold at

all.

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