ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 03_TD011_January 17, 2011_Monday
source: www.pse.com.ph

SPLASH CORPORATION LAST TRADE 2.53 MARKET CAP 1,667,190,423

Disc. No. 2011-0392 52-WK HIGH 3.35 OUT SHARES 653,800,166
CAPEX budget for 2011 was pegged at php426 million.
52-WK LOW 2.22 DIV YIELD % (5yr Average) n/a
The amount will be used to expand plant capacity,
PE [TTM] 23.29 2010 EPS (annualized) 0.1200
improve facilities and enhance MIS for its International
and Direct Selling Operations. SECTOR PE 22.67 EPS GRWTH %-3yrs n/a
PRICE-TO-BOOK 0.67 BOOK VALUE 3.77
For the first nine months of 2010, SPH generated net SUPPORT 2.44 STO (10,3) 51.88
sales of php2.196 billion, representing a 1.0% growth RESISTANCE 2.54 RSI (14) 54.72
year-on-year. Eight new products across three brands TECHNICAL ACTION ACCUMULATE OBV TREND NEUTRAL/consolidation
were introduced during the period the sales of which PRICE TARGET 3.8 BETA vs PSEI 0.68
accounted for 5.6% of the total, substantially less than
the 17.1% contribution this segment had in the comparative period. Domestic operations contributed php1.8 billion or 83.9% while
International Operations delivered php324 million or 14.8%. The Direct Selling segment, in transition from a franchise- to a company
owned and operated model shared 1.3% of the net sales. Most of its products have maintained their leadership positions in their
respective markets while the others continue to establish and strengthen their foothold, eating up on the competition's piece of the pie.

Return-on-Equity registered a signficant rise from a mere 0.48% in the January-to-September 2009 period to the most recent nine-month
period's 2.43%. This was brought about by reducing costs to just 40% of sales from 2009's nearly 50%. Furthermore, a lower tax rate of
20% from 27% widened the bottomline. The biggest push in the ROE change was the bigger net margins from half-a-percent to 2.76%.
Per share earnings jumped to an annualized php0.12, 4x more than the full year 2009 result. Surprisingly, SPH stock price recorded a
-43.75 slump as of end-September 2010 year-on-year. For the entire year, however, it booked a decent 13% rise to php3.40. It thus
ended 2010 with a PE multiple of 28.3x, a much fairer valuation than its end-2009 PE of 100x.

The stock met strong resistance at the 150pdEMA [php2.5371]

ending the session just below at php2.53. It has been
consolidating between php2.44 (strong support) and php2.54
(interim resistance) through the first 11 sessions of the year. While
STO (middle chart) shows a sustained break above the trigger line,
the failure of the MACD to confirm this puts doubt on whether there
is enough push to carry to momentum forward. Thus, even though
the stock has managed to remain above the four-month downtrend
line since it broke above in mid-December, thin volumes diminish
the probability of a sustained push. The weekly chart even puts
the stock at a relative high price point necessitating a drop before a
strong buy signal can be made. We are nevertheless confident
that the issue will continue to move sideways, albeit the earlier
mentioned range does not provide sufficient short-term trading
margins. On the fundamental side, a pick up in consumer
confidence, and subsequently, freer spending patterns, will benefit
the Company's roll of non-essential, but high-demand, products.
This should augur well for the bottomline. ACCUMULATE

LEISURE & RESORTS WORLD CORPORATION LAST TRADE 7.47 MARKET CAP 5,821,658,094
Disc. No. 2011-0402 52-WK HIGH 7.70 OUT SHARES 849,877,094
The engagement of its subsidiary, AB Leisure Global 52-WK LOW 1.10 DIV YIELD % (5yr Average) n/a
Inc [ABLGI] as operator and manager of Belle PE [TTM] 26.87 2010 EPS (annualized) 0.2300
Corporation's [pse: BEL] Casino project through its
SECTOR PE 11.02 EPS GRWTH %-3yrs 63.55
subsidiary, Prime Leisure and Amusement, Inc [PLAI],
was formalized with the signing of the 10 Year PRICE-TO-BOOK 3.71 BOOK VALUE 2.01
Operating Agreement last Friday, January 14, 2011. SUPPORT 6.14 STO (10,3) 90.09
RESISTANCE 7.70 RSI (14) 85.79
The Casino, seen to be completed and to begin TECHNICAL ACTION Near Term SELL OBV TREND UP/rising
operations in the last quarter of the current year, will PRICE TARGET n/a BETA vs PSEI 0.81
be situated at the Aseana Business Park in
Paranaque, an entertainment complex development along Manila Bay being undertaken by a consortium led by SM Investments
Corporation [pse: SM]. A requisite for the effective implementation of the Agreement is the inclusion of ABLGI as member of the
Consortium. ABLGI will operate and manage the Casino and for such will be receiving 50% of EBITDA as monthly management fee.

The anticipation of this agreement dating as far back as early last year, has sent its stock price on a steep rise this year. It ended 2010
at php3.80, which at Monday's php7.47 close represents a 96% gain over 11 sessions. Furthermore, it hit an all-time intraday high of
php7.70, pulled back momentarily by profit-taking towards the close of trades. Needless to say, from a technical platform, past this point
is uncharted territory and we thus have to move back to fundamental valuations for an upside price target. But to be realistic about it,
the Casino, as mentioned above, is targeted to begin operation only by Q4 2011. Thus from now until then, there will be no revenues to

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 CO MPLETE 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.
DAILY Report Page 1 of 2
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 03_TD011_January 17, 2011_Monday
source: www.pse.com.ph

consider and incorporating anticipated Q1 2012 income is too far out in the horizon, even as we hold that we expect bottomlines of both
BEL and LR to exponentially expand, contingent upon the success of this operation. On this basis alone, both issues qualifiy as long-
term propositions.

Yet as we take cognizance of the technical indications, we find it

prudent to raise the flag of caution, particularly as the premise of
the recent price action has already been fulfilled. Alternatively,
we wait for the fundamentals to “catch-up.” Moving forward,
thus, intermittent profit-taking may pose a challenge to a further
rise over the near-term. This is not to say it is improbable, only it
carries more risks. For one, the aggressive trading in the
counter has pushed it past the 80-overbought line for both
STO(10,3) and RSI(14). The latter in fact, has already moved
lower, even as the price continued to rise. (It read 90.8648 when
it closed at php7.18 last January 13, and dropped to 85.7942 at
today's close of php7.47. The AccDist Line draws the same
pattern. Thus, even as the MACD spread continues to widen,
we may be approaching an interim turning point. With the
Agreement signed, and the “tie-up” confirmed, the market will
have to wait for a new impetus to sustain the pace of the
advance. Two price points are critical when considering the
magnitude of the pull-back: the php0.25 gap between php6.14
and php6.39 and the php5.80 line, respresenting the 38.2%
retracement mark. Both serve as support levels 1 and 2,
respectively. Resistance is pegged at the php7.70 mark. NEAR-
TERM 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 CO MPLETE 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.
DAILY Report Page 2 of 2