DARKEST HOUR
The ABS- CBN Corp. headquarters in Quezon City on May 5, the day the National Telecommunications Commission (NTC) ordered the company to shut down its broadcasting operations after its congressional franchise expired. Almost two months later, the NTC ordered SkyCable Corp. to stop its direct broadcast satellite service and ABS- CBN to cease its digital TV transmission service.
DESPITE the government’s efforts to further restrict ABS-CBN Corp.’s coverage nationwide, investors remained bullish about the media conglomerate’s stocks, according to analysts.
Shares of the broadcasting company fell by 10 centavos or 0.67 percent to finish at P14.86 apiece on Wednesday.
Despite this, Japhet Louis Tantiangco, research analyst at Philstocks Financial Inc., told
that “we still see a glimmer of optimism from investors for ABS-CBN Corp. in today’s trading.”
“[This] as some investors took positions, fueled by hopes that there would still be positive developments with the company moving forward, primarily a franchise renewal,” he said.
Tantiangco’s comment comes a day after the National Telecommunications Commission (NTC) directed ABS-CBN’s cable subsidiary Sky Cable Corp. to halt its services, as these were covered by the cease-and-desist order (CDO) issued on May 5 after the network’s franchise expired.
“Upon the expiration of RA (Republic Act) 7969, Sky Cable
Corp. no longer has a valid and subsisting congressional franchise to install, operate or maintain a Direct Broadcast Satellite (DBS) Service,” the NTC said in its order.
In a separate order, the regulator also demanded ABS-CBN to shut down its digital TV transmission service in the National Capital Region using Channel 43.
Although the TV station pointed out in a statement that the channel was “not mentioned” in the May 5 order and that it was made to understand that it “is not included in the CDO,” it said “digital TV transmission in Metro Manila using Channel 43 will cease tonight.”
“This means that viewers with TVPlus set- top boxes in Metro Manila will be unable to watch Teleradyo, Jeepney TV, Yey!, Asianovela Channel, CineMo and KBO,” it added.
Both SkyCable and ABS-CBN complied with the orders, which were signed by NTC Commissioner Gamaliel Cordoba.
Meanwhile, AAA Southeast Equities Inc. President Matthew Cabangon said in a mobile message the Lopez-led conglomerate’s shares continued to gain traction because of its “cheap” price on the bourse.
“ABS[-CBN] has been resilient, mainly because of the already depressed stock price, with book value per share at P43,” Cabangon said.
“Even without considering the possibility of a franchise renewal, the liquidation value of the company can still attract investors because the stock is so cheap,” he added.