Special Report: Which Stocks are Negatively Affected by POGO Crackdown?

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Our Partner Broker’s Analysis and Recommendation

The Chinese embassy recently confirmed a crackdown on Chinese nationals committing telecom frauds and gambling crimes abroad. Cancellation of POGO workers’ passports was not mentioned specifically, but the embassy reiterated that any form of online gambling attracting China’s citizens as primary customers is illegal. Below are our key thoughts:

a. The news comes at a time when POGOs are already in hot water due to issues on taxes, illegal entry and recruitment, and various social crimes. Calls for an outright ban from some senators may take hold if China will strictly enforce its threat.

b. The exposure of the property sector is very significant. Based on data from Colliers, POGOs occupied…

c. We tabulated below the latest figures we have on property companies’ exposure both on the residential and office side…

 

POGO Exposure of Philippine Property Companies

COMPANY RENTAL INCOME FROM POGO RESERVATION SALES FROM POGO
SMPH 0% 6%
FLI ??? ???
MEG ??? ???
VLL ??? ???
DMW ??? ???
ALI ??? ???
RLC ??? ???

 

d. Domino effect to other sectors would mainly be on retail, gaming & tourism, construction, and banks…

Some inquiries in the POGO community failed to substantiate reports of passport cancellation/repatriation. We will have to wait and see on what the next developments will be, but this will be another overhang for property issues, and the market as a whole…

 

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AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

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