ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

MARKET NOTES_STOCK RIGHTS OFFERING (preliminary notes)

source: www.pse.com.ph ALLIANCE SELECT FOODS INTERNATIONAL, INC. [pse: FOOD] (formerly Alliance Tuna International , Inc. [pse: TUNA] Offering Details: OFFER RATIO OFFER PRICE Est. NET PROCEEDS Ex-Rights Date OFFER PERIOD TENTATIVE LISTING DATE ISSUE MANAGER/UNDERWRITER
Ref e-mail: jcwaterrat@gmail.com

1 right share for every 2.2 shares held Php1.00 Php268,718,260.00 June 24, 2011 July 4 to 8, 2011 July 18, 2011 Abacus Capital & Investment Corporation

Company brief: Incorporated as Alliance Tuna International, Inc. in 2003, and listed at the PSE as TUNA three years later, the Company is engaged in the processing and canning of tuna, principally for export to five continents, using its costumers' brands. The by-products and scraps from its tuna manufacturing are processed as fishmeal and sold to domestic feed millers.

Other units and subsidiaries: FOOD has a marketing office in Bangkok. It owns 40% of FDCP, Inc., a can maker, acquired in 2005 to ensure stable and sustainable supply of quality cans. In 2008, it established PT International Alliance Foods Indonesia (PT IAFI), as a vehicle to acquire the assets of a Bitung, North Sulawesi tuna cannery. IAFI's capacity has been upgraded to 60 metric tons per day, pushing the Company's total to 200 metric tons per day. FOOD holds an 89.9% stake in IAFI, which started operations in July 2009. In that same year, it invested in 39% of Prime Foods New Zealand (PFNZ), a processor of smoked salmon. The stake was later increased to 50%+1. PFNZ and FOOD established a Joint Venture Company, Big Glory Bay Salmon & Seafood, Inc. (BGB) to import salmon from New Zealand, Chile and Norway for processing in its plant in General Santos City which is calendared to be completed this month. Under the JV Agreement, FOOD's 89.09% stake in BGB will be reduced to 50%+1 in favor of PFNZ. Last but not the least, FOOD owns 40% of AMHI which was established to acquire the land and canned tuna processing facilities the Company leases from MCC. Key Performance Indicators: The Company's KPI numbers are not encouraging, at least not over the last two years. Sales growth has substantially slowed in the 2010-2009 comparative periods, a trend that continued through the first three quarters of 2011. Margins, both on the operating level and the bottom-lines were squeezed by rising costs. The numbers are slightly worse when translated from its functional currency (US$) to Philippine peso, which appreciated, on average, by 5.3 percent in 2010. It has gained over 4.0 percent on the year-to-date from the 2010 average.
Net Sales Growth Rate Net Income Margin Current Ratio Debt-to-Equity Ratio Return on Average Equity 2011 Q1 -12.00% 2.10% 1.92 0.72% 0.90% 2010 Q1 -7.00% 4.20% 2.8 0.48% 3.00% FY 2010 -5.18% 3.34% 1.84 0.60% 7.40% FY 2009 -1.24% 3.86% 3.19 0.20% 10.61%

Trading Profile: FOOD stock price has been on a defined downtrend since topping at the php1.82 in late-February this year. Nevertheless, it has been able to hold above the php1.39 to php1.46 support range. Average volume, using a 12-month moving average, has leveled at around 20 million shares in the last three months, Over that period, stock price has dropped php0.20 or -11.76% to php1.50 last Friday. (note: this puts the Offer Price at a -33.33% discount.) The stock, however is up 4.9% on the year-to-date 10x the main index' 0.44% yield over the same period. On a positive light, the volatility risk (defined by standard deviation measure over the same 12-month moving average) has substantially narrowed. As of last Friday, the dispersion measure stands at 0.13 vis-a-vis an average monthly return of 1.58%, or a fair exchange of 12.15 units of return per 1 unit of risk. The PSEi, as a gauge of the entire market, has, over the same period, returned an average of 2.08% per month with dispersion at 6.56. The risk-return relationship is better than the market's 0.31 return per unit of risk. Ceteris paribus, and in this context, FOOD becomes a good candidate for a medium- to long-term portfolio, even discounting a potential short-term play on the Offering discount.

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itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. DAILY Report Page 1 of 2

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ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

MARKET NOTES_STOCK RIGHTS OFFERING (preliminary notes)

source: www.pse.com.ph
Ref e-mail: jcwaterrat@gmail.com

The daily chart of FOOD shows the potential short-term action, with RSI(14) and STO(14,3,3) heading in generally opposite directions. The boxed-in portion in the top chart shows a long, consolidation between php1.50 and php1.70, marked by extended downward biases and short-run up cycles. On this basis, an anticipated short-term run should become more of a profit-opportunity over a long-term proposition. This however, does not diminish the latter prospect. Other considerations: The stock is currently trading at 15.71x trailing 12 month earnings. On a prior year's earnings basis, the multiple is at an even lower 11.39x, which is significantly lower than the Food sector's end-April (latest available) PE of 24.55x. Given the rapid decline in prices since the end of April (-2.3%), the number is reasonably expected to be a bit lower (est. at 23.98x.) The PSEI PE stands at 14.88x. On this basis of PE averages, the security is currently fairly priced at between php1.50-1.58. The company's earnings performance is negatively affected by the continued strength of the local currency. Based on last year's results, the translation into the local currency subtracted roughly 1.0%-2.0% points from its already poor results. Based on its accompanying forecast financial performance for 2011, the expected EPS of php0.158 ($0.004) should, at translate to a market value of php1.80, php2.48 and php3.80, using prior year, TTM and sector average PE, respectively. The Company's primary export markets are Europe, North America, Asia, Africa and South America. Outlook/Recommendation: Pending the release of the Final Prospectus for the Offering and based on the limited data available and utilized in this report, the stock earns a HOLD proposition. With respect to the Rights Offering, we place, on an interim basis, a SUBSCRIBE tag. Short-term trading on momentum may present positive margins, particularly on a market still in search of trading opportunities.

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. DAILY Report Page 2 of 2