Sep 18, 2012
| Stock | Buy Below | Current Price | Target Price | Average Cost | Return |
| BDO | 60.00 | 62.95 | 81.00 | 60.10 | 4.53% |
| ALI | 20.00 | 24.20 | 22.50 | - | - |
| PGOLD | 24.00 | 29.50 | 30.00 | - | - |
| EDC | 6.00 | 6.18 | 8.50 | 5.94 | 3.88% |
| TEL | 2,600.00 | 2,864.00 | 3,000.00 | - | - |
| AGI | 11.00 | 13.00 | 15.00 | - | - |
| MBT | 94.00 | 91.90 | 105.00 | 93.3433 | (1.57%) |
The ghost month officially ended last September 15. What a relief for investors who have been wary of the dreaded ghost month because the stock market in general goes down during this period. Now that it’s over, is it party time like in 1986? Well, the PSEi is up and has broken some of the resistance. It is poised to go up in the 5,500 level. However, caution must be exercised because selected stocks have risen too much giving way for profit taking for the traders.
The index declined by .37% today because some investors took profits from the rally since the QE3 announcement. Yesterday, I explained what QE3 means in Tagalog and I am hoping that somehow you now have a general idea on what QE3 is all about. In case you missed it, here is the link http://theofwinvestor.blogspot.com/2012/09/qe3-explained-in-tagalog.html.
Europe’s exports declined in July fuelling fears that recession is in the horizon2. In the second quarter Europe’s economy contracted and if in the 2rd quarter it is still in red, then it is officially in recession. A recession is marked by two consecutive quarters of negative growth.
The outlook in the Philippines is different with business leaders optimistic about the growth of the economy. Economic managers’ forecast a 5-6% increase in GDP by the end of the year3. Whatever will happen in the world, it will have an effect in the Philippines but the strong fundamentals will likely keep it afloat above the other countries. Long-term prospect is good and at this economic boom of our country, it is good to stay invested.
Value of shares traded is P6.4B. Foreigners are net buyers worth P153M today.
INDEX TOP GAINERS
| TICKER | LAST PRICE | % |
| SMPH | 14.1 | 1.15 |
| ALI | 24.2 | 1.26 |
| EDC | 6.18 | 1.31 |
| FGEN | 19.32 | 1.58 |
| BDO | 62.95 | 1.61 |
INDEX TOP LOSERS
| TICKER | LAST PRICE | % |
| JFC | 99.5 | -3.40 |
| BPI | 76.9 | -1.98 |
| MER | 259.6 | -1.96 |
| JGS | 33.5 | -1.47 |
| AEV | 48.3 | -1.43 |
BDO- the foreigners net bought P157M. Total traded value is P298M. It means that more than 50% of the trades were made by foreigners and they are on the buying side.
Let’s sit back and relax while the players scramble for sharesJ.
BDO has a stake in Tampakan mine1.
Initial target price based on the technicals is 68.
ALI- the foreigners net bought P205M. This stock is a favorite among the foreign investors and it shows today. It increased by 1.26% today.
An insider sold 100,000 shares last Sep 7. Everyone is jostling for shares and yet the insiders are dumping, smart people indeed!
The fundamentals of ALI remain the same. In fact they have been very aggressive in land banking for quite a while. I am revising the buy below price to 20.
PGOLD- the foreigners net sold P5.5M while yesterday they dumped P16M. Hmmm…
An analyst just downgraded PGOLD to HOLD because the price runs ahead the fundamentals.
After lounging in the 30th heaven for a while, PGOLD is slowly moving down towards earth. We will gladly welcome and meet PGOLD at 24th Avenue with matching flowers and bands.
EDC- the foreigners net bought P13M. It increased by 1.31% today.
Target price based on technicals is 6.27.
TEL - the foreigners net bought P7M. After days of continued ascent, TEL finally succumbed to some profit taking which pushed the price down. The price is 2,864 per share which is still quite high.
The trend is strong going up and at this point, it will take a massive wave to steer the boat from its current direction. Are the investors anticipating the 2013 and 2014 results already based on the guidance of management? I think so. I shall revise my buy below price to 2,600 so that in case of extreme pullbacks, we can still buy.
AGI – the foreigners net bought this stock with P134M. As usual foreign investors just keep on buying up this stock for reasons I don’t know. Almost 50% of the trades happened at the 13 per share price.
MBT - the foreigners still net sold this stock with P280M. I’m watching the ticker tape all along and then I noticed that the foreign brokers are active in selling their shares. I am not surprised at all upon seeing the net foreign selling at the end of the day. Well, any pullback is a welcome development for meJ. The selling pressure is strong in the afternoon.
Source: PSE, COL data
Note: This is not a solicitation to buy. Buy at your own risk.
No comments:
Post a Comment