Island Info Q2 net income: P102,118 (up 2,307% y/y)

Island Information and Technology [IS suspen-dead] [link] posted a Q2 net income of P102,118 (+2307% y/y, +86% q/q). IS was a mining company that stopped mining in 1981, which lingered until 2000 when it changed its name to focus on IT. That change lasted five years until 2005 when the company changed its primary purpose to “provide cargo container management and integrated logistics services”. IS was suspended for basic reporting failures in 2021, and has remained suspended since that time. All the company really owns are two condos (one in Makati, and one in Rizal), and it has made money leasing out that condo in Makati since 2023, but notes that the income is not enough to cover its costs and expenses. IS describes itself as “non-operational”, with a management team that is still “studying the best course of action.” 

  MB BOTTOM-LINE:  Delist it. While IS isn’t as bad as some of the other zombie companies that still linger in the dark corners of the PSE, there isn’t anything in the listing rules that says the exchange should give a company years of grace to figure out how to cure its reporting failures. The rules say: dump it. Involuntarily delist it. Return its nutrients to the soil. SEC Commissioner Francis Lim, if you’re reading this (haha imagine that), please address this glaring suspension/delisting problem. Not only are the rules too quick to suspend a stock (punishing the public float) for failures of the management team, but they’re also too lenient once a company is (rightfully) suspended. Well, technically, the rules are actually savage in that they force the PSE to delist suspended companies after three months, but there is some massive disconnect between the rules and the PSE’s willingness to enforce those rules that needs to be addressed. 

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