a. The following information from a business article titled, “PLDT cuts full-year profit forecast after third-quarter results disappoint” was posted on Interaksyon.com (Date accessed: March 11, 2015)...

a.


The following information from a
business article titled, “PLDT cuts full-year profit forecast after
third-quarter results disappoint” was posted on Interaksyon.com (Date accessed:
March 11, 2015) on November 4, 2014. From the article, PLDT management reported
that PLDT’s 2014 third-quarter net income was down to P7.9 billion in the same
period in 2013.

“Our third quarter results reflect
intensifying competition in the cellular space of our business, to which we
have taken measures to respond to competition and stabilize our share of
market. Smart, Sun and Talk N’ Text undertook to match or neutralize price
aggression on the prepaid front, effectively lowering price points for the same
level of activity”,

“
Manuel
V. Pangilinan
*
, PLDT Chairman
said
*
.
”

“Based on this market assessment and
on the information available to the company, PLDT is revising its profit
guidance for the full-year to P37 billion from the P39.5 billion previously
disclosed,” Mr. Pangilinan said.

Question: How do you think will PLDT
investors react to this piece of information?

“
What do you think
*

will happen to its stock price
*
?
”

Explain your
answer.