Logistics War

Nice article from Inquirer on why companies like MPI and SM are acquiring Logistics companies. MPI acquired Ace Logistics while SM acquire 35% of 2GO. The reason why its price shoots up.

Big firm tend to be on the mercy of Logistics firm when they are moving their goods, like delivering products to their customers or transferring assets from one location to another. Going into online retailing business would definitely require Logistics asset to handle shipping or air freight services. As Ayala acquired 49% of E-Commerce Zalora Philippines, they would probably be looking for a Logistics company right now. Or maybe they will create a Logistic business instead of buying one from the outside.

I believe next on these company's agenda is to look for people who really knows how to operate or have a broad experience managing complex logistic operations. That would be a crucial component to run a Logisctics company successfully. People like Tim Cook of Apple would be a good reference :-). Based on the book I read, he really excel in logistics operation. He's the one who Steve Jobs depend on to source different components of their products like IPhone components. Hopefully we have some Tim Cook here in our country.

PSE

As expected, index goes down due weak trading in anticipation of the 4 days of non-trading. I think there will still be some steam next week due to somehow positive outlook on our economy. We are still in good economic territory specially if the Government would stand on its promise to build needed infrastructures throughout the country. That would be a good days for companies like DMCI, SMC and MPI. Billions would be on the table for not so easy picking :-).

Speaking of DMCI, Supreme Court decided that construction of Torre De Manila was legal. I don't think the decision is final yet - complainants can still ask for reconsiderations.