ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week 36_September 6 to September 9, 2010
1 of 3

OUTLOOK:

Though we are tempted to make an immediate revision of our full-

year index target of between 3,800 and 3,840 in light of last week's
surge, prudence dictates we hold on to those figures at least for
another week. The optimism that surfaced with the Dow's almost 3%
rise last week may provide a sustained impetus for locals to keep on
the buy side or, at the very least, hold current positions. Traditional
expectations of a weak September in the US may put some investors
on the edge, ready to dump shares and book profits at any sign of
creeping weakness. This however, will open up the market to bargain
hunters whose constant prowling presence have kept the market from
a fear-inducing free-fall.

Thus far, the index has been able to hold successive adjusted support
levels while breezing past indicated resistance marks. With the
sudden and sustained surge of confidence in equities, we can look at
the 3,800 line as the pyschological target for the index. Major support
is drawn at the 3,620 line.

LAST WEEK'S HIGHLIGHTS:

• Global markets rebounds off prior week's losses

• Dow emerges from year-to-date losses
• Thailand, Indonesia sustains 20%+ ytd gains; RP joins club
• Double-dip recession concern eases; growth pace seen as
either from flat to slow
• Local market driven by momentum; market back in overbought territory

GLOBAL markets rebounded off the prior week's almost across the board slide escaped only by the Kiwis, Kuala Lumpur and
Singapore. Europe registered the biggest advances, with Germany's +3.10% the “slowest.” (refer to table to the right).

No less than ECB President Jean Claude Trichet practically wrote off prospects of a “double-dip” recession for the region.
Nevertheless, unemployment, public debt and much-needed structural reforms challenge a sustained recovery for the continent's
economy. The Netherlands and Germany combine for roughly 15% of RP's export receipts, highlighting the value of a fully-recovered
Europe to our national accounts.

US investors meanwhile, finding renewed confidence from the latest jobs report rose nearly 3% on the week, snapping three
consecutive weeks of decline. Private employment and manufacturing grew at a better-than-anticipated pace giving the market a
welcome breather from a slew of deteriorating numbers in
previous data releases which, at one point, heightened the
prospects of a second recession dip. Retail sales and pending
home sales likewise defied expected drops early in the week
setting the tone for one of the bourse's better performing
weeks. The last time the Dow rose by over 3% was during the
week ending July 23 when it added 3.2%.

Nevertheless, the Dow remains in a down-trend since the April

peak at 11,204.30. The year-to-date is almost sideways,
imputed with a negative bias over the near-term. The 15-wk

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO
CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT
REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-
WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week 36_September 6 to September 9, 2010
2 of 3

slope is a steep -36.71, while the year-to-date is an almost flat -4.86 (35 weeks.) The critical number to watch out for this week, is at
10,470 – a sustained break off which will usher in a possible invalidation of the near-term downtrend.

The technicals are encouraging as well. RSI(14)- weekly, leaves much room for an upside, STO (10,3,3) is poised to pierce the trigger
line as it moves north, and most telling off all, the measure has broken the 200pdEMA! On the daily charts, the picture is no different.
MACD (12,26,9) breaks above the signal line even as it begins to emerge from negative area. The 10,330 marks the Index's major
support.

Asian markets continue to lead with the Philippines joining its Southeast Asian neighbors Thailand and Indonesia with a +20% year-to-
date gains. However, it is also in the same continent that two of the biggest losers are, China (Shanghai) and Japan ( Nikkei.) Each
have shed -18.96% and -13.58%, respectively.

TECHNICAL CONDITIONS:

The PSE Index is trading at levels last seen towards the end of 2007, as the market was coming off the peak of a four-year bull. While
full-year 2007 returned 25.2%, the last three months actually saw a -6.74% slide. It is worth noting that 2009's return was 2.5x 2007's
and was the biggest single year gains.

At Friday's close, the index is again into overbought territory. RSI(14) and STO (10,3,3) have crossed over the 70- and 80- lines,
respectively warning of a possible near-term top. This reading is valid in reference to daily , weekly and monthly charts. Recent
experience have shown, however that it took the indicators another two-to-three sessions in overbought area before a pullback
ensues. Further noting that such pullbacks have fallen short of estimates. Value turnover last week improved to >php7.B compared to
php6.7B the week prior. This is magnified by the fact that last week was even a day short with Monday a non-working holiday. (This
week will likewise be cut short by a non-working holiday on Friday.)

DISCLOSURES:

MRC Allied, Inc. [pse: MRC] php0.85, +30.8% wow

The company's share price surged last week on news reports the group of Lucio Tan, Jr has struck a deal acquiring a 56% stake in
Johnny Air Cargo (JAC), which it will eventually list using MRC as the vehicle. While the company has clarified that while there are on-
going negotiations, no definitive agreements have been signed.

In its latest FS (for period ended June 30, 2010) MRC's balance sheets remains weak. There were no changes in assets over the six
month period while liabilities increased by 2.09% . It's current ratio is 0.69, has a negative return-on-equity and return-on-asset. It has
had no revenues at least over the last two years and has a negative equity position. 99% of its assets are real estate properties, of
which only 40% are developed for sale while the balance are lands under development. Early this year (Q1), its equity restructuring was
approved whereby a php400M surplus was created and used to reduce the end-2008 deficit of php966.9M. This was effected first by a
change in the par value from php1.00 to php0.20, and subsequently increasing authorized capital to php3 billion divided into 15 billion
shares. It is currently in negotiations to acquire a controlling stake in Lodestar Investments Holdings Corporation (LIHC) which owns
Abacus Coal Exploration and Development Corporation.
Likewise, it has entered into an equity-line-of-credit with the
GEM group that among others, allows the latter to subscribe to
as much as php1.38 billion worth of MRC shares over three
years. What is interesting to note is that in the same breath that
the Company says its vision is to become a total energy company,
it reveals its hope that the above-mentioned capital movements
will enable it to re-enter its niche in the property market, generally
speaking. Leading to the question of focus: is MRC looking at
becoming an energy unit, or recouping its position in the property
market? Or maybe both? The acquisition of JAC, as reported in

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO
CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT
REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-
WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week 36_September 6 to September 9, 2010
3 of 3

the newspapers, may be a welcome development and present the issue as a potential turn-around story. Such, however will take time
considering the current straits of the Company. The fundamentals do not present sufficient reason to take an aggressive position on the
stock.

The technicals, however, present investors with a possible momentum play. As mentioned above, it has surged 30% in the four
sessions last week. BUT, note that volume turnover actually thinned to 19.888M shares vs. the prior week's 25.698M (daily average
4.972M vs. 5,196M, respectively.) While the daily RSI (14) has barged into the 70-overbought line, the weekly number leaves much
room for an upside. A penetration of the 70-line does not automatically signal a sell, but warns of a possible overheating causing a
possible pullback. STO(10,3,3) draws the same “conclusions” for both daily and weekly. The monthly (longer term) is more promising,
with STO just poised to cross-over the trigger line. Adding further hints to a possible upside is the impending cross over of the
14pdEMA over the 60pdEMA with the 200pdEMA going flat at php0.69. While initial support is seen at php0.78, the gap between
php0.75-0.77 may be filled. The comfort buy field thus would be wihtin this range, with major support at php0.69. Friday's close at
php0.85 is a resistance mark, making Monday's trades “make-or-break.” Rising further puts the technical price target at php0.85 and
php1.04. TRADING BUY.

FIL-ESTATE LAND, INC. [pse: LND] php0.54, +16.1% wow

Another promising turn-around story that appears to have hit a snag. The Company expressed confidence in hitting a net income of
between php30M and php50M for its fiscal year ending September 2010, after the first two quarters (to March 2010) registered net
profits of php32M. The results for its fiscal year Q3 however, puts the php30-50M target in peril. Even though it made php32.1M in the
first semester (October 2009-March 2010), the April to June period registered losses of php28.5M, dragging the 9-month total to only
php3.6M! Thus, the company needs to recover most of the April to June losses inorder to match even just the lower end of the target.

Whether for this reason or otherwise, LND is looking to raise as much as php6 billion in fresh funds through a combination of bank
loans and asset sales. For the former, it is in talks with BDO and the Bank of Commerce. The assets lined up for sale are Boracay (36 of
the 126 hectares – the 90 has. it retains is allocated for the continuing development of the Fairways and Blue Water Resort and Golf Club)
and the 62 hectares along Daang Hari in Las Pinas. Also within the ambit of its considerations are possible joint venture arrangements
with other investors for major leisure projects. The proceeds of these efforts will be utilized to generate php17 billion worth of fresh
inventory which in turn is seen to generate revenue for the next three years. While the plans should revive interest in the turn-around
story, there are too many variables and unknowns at present to make a convincing argument for even a long-term position on the issue.
The cash-to-long term debt position is a negative -php1.251B with cash and cash equivalents squeezed by 58% in the 9 months to June
2010. Current ratio is a healthy 2.10, but a little over a third of current assets are “real estate and golf club shares and resort shares for
sale.” Netting this out, Quick ratio is a poor 0.27, which puts pressure on sales to cover maturing obligations over the near-term. Based on
its annualized EPS of php0.0015, the stock is currently trading at an exorbitant multiple of 368x!

LND share price broke the upper limit of its almost 6-month old
php0.38-0.43 trading band, possibly on the back of its
announced profit target. However, it met resistance at the
php0.59-0.60 area, ending last week with a 2-day, php0.04
decline to php0.54. The charts draw a possible pullback to the
php0.48 level while keeping the interim top at the php0.60 line.
RSI (14) has turned south, falling below 70, while STO posits a
stronger SELL signal with a downward penetration of the trigger
line, as it hovers inside overbought field. As the company's fiscal
Q3 results show, the exuberance on the projected figures,
including a 50% rise in bottomlines for 2011, may have been
overdone. SELL

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO
CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT
REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-
WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.