I.

Investment Choices
NutriAsia Inc.
1,000 of Php 100,000 Coupon Bonds for a total of Php 100,000,000
Interest Rate: 5%
Maturity: One Year
NutriAsia provides for an attractive scheme for this investment vehicle.
The bonds mature only for a year, providing for an easy exit strategy. In addition, a short
term maturity means less exposure to risks. The financial statements of NutriAsia
boasts a healthy financial performance, indicating that the company may very well be a
going concern and the risk of nonpayment is virtually nonexistent. There is almost a
guarantee of getting the initial investment plus the 5% interest.
Green Cross Inc.
50,000 of Php 1,000 Puttable Bonds @ 105 for a total of Php 52,500,000
Interest Rate: Floating @ BSP rate + 3.00% payable semi-annually
Maturity: 10 years (puttable @ 103 in 3 years; 102 in 5 years; 101 in 7 years; 100 in
9 years)
Although Green Cross Inc, suffered a decline in profits by 18.21% from last year, it
compensates for this by offering an attractive investment vehicle. The investment
vehicle provides for semi-annual interest payments. Interest rate is approximately
4.650% (3% plus 1.650% interest rate of 182-day Government Bonds for the current
period as provided by the Bangko Sentral ng Pilipinas) semi-annually. Therefore, the
investment vehicle will pay an approximate amount of Php 2,325,000 every six months
(subject to fluctuations of the Government Bonds rates). A year of holding the bonds
provides for an estimated total payment of Php 4,650,000 which is more than enough to
compensate for the premium of Php 2,500,000. In addition, the bonds are puttable
meaning they can be repaid by the company at the option of the holder. The shortest
puttable period is for 3 years. Considering the decline of profits of Green Cross Inc., an
exit after three years is reasonable.
Nissin-Universal Robina Corporation
100,000 shares of Php 1,000 preferred participating shares
Dividend rate: 10%
Nissin shows a robust financial performance, and therefore it is safe to assume that the
company has a relatively low risk profile. The company also recently acquired Payless
and plans to expand further by introducing new products that may compete with Lucky
Me Pancit Canton. With the aggressive expansion and good track record of the
company, investing in equity becomes an attractive option. In addition, the stated equity
vehicle provides for a dividend rate of 10% and a participating option. Considering the

financial performance and the future plans of the company, these returns are likely to be
realized.
Bounty Agro Ventures Inc.
1,000,000 shares of Php 100 preferred participating shares
Dividend Rate: 10%
Bounty Agro is a promising venture. The financial performance of the company shows a
tremendous growth in profits and a very healthy cash flow. The company also plans to
expand, particularly by engaging in exports to Japan and Korea. Given the historical
performance of the company, it is safe to assume that the company will remain
profitable. In addition, the upcoming expansion of the company may further bolster its
profitability.

II. Investment Ratings

Liwayway Marketing Corporation
Rating: -3
Liwayway Marketing has a relatively poor financial performance for the past years. It
has been experiencing a decline in profits and its liquidity is sustained by borrowings.
Given the risky profile of the company, it should have issued more attractive forms of
investment by issuing bonds with shorter maturity period or higher interest rates and
offering equity vehicles with more features. Also the company may offer these types of
investment vehicles with an easy exit strategy for the investors considering its
deteriorating financial performance.
Green Cross Inc.
Rating: -2
Green Cross may be highly liquid and has virtually no debts, the company however
suffered a massive decline in profits experiencing a steep decline of 18.21% in 2014.
While it is true that household goods have a relatively stable demand regardless of the
economic conditions, it is not also responsive with respect to price changes. In other
words, if the company decides to lower prices it may not necessarily translate to a
higher demand. Such demand may be considered as inelastic. Currently Green Cross is
experiencing a decline in profits and this may likely continue for the coming years. The
company, however, compensates with their risky profile by offering attractive investment
vehicles.