My Stock Portfolio

As a stock investor, perhaps you are wondering what are the stocks I am buying. Well, I have bought various stocks already and sold them at a profit. After selling all my stocks before, I purchased again every month and below are the current stocks I have.

Action	Stock Code	Market Price	Ave. Cost Price	% Gain/Loss
BUY | SELL	ALI	15.9000	15.0918	5.36%
BUY | SELL	FPH	60.7000	62.8556	-3.43%
BUY | SELL	MWIDE	11.0600	8.9262	23.90%
BUY | SELL	SCC	214.8000	213.5281	0.60%
BUY | SELL	VLL	3.1800	3.1794	0.02%

ALI - is the largest and most diversified real estate company in the Philippines.ALI is a brand of it's own. A company that sets the benchmark in almost every aspect of real estate industry.

The share price against it earnings is expensive. Investors are willing to put a premium to the price of it's share given it's vast knowledge and experience in real estate. Since the company has 4300 hectares of land bank, it is well position to capitalize on the hot property market in the next ten years. Net income has been growing every year except in Year 2009. 

The net income for the 1st quarter is 1.6 billion pesos and it's well on it's pace to break it's previous net income record in Year 2010. Liquidity is not an issue also because the current ratio is 1.96:1 for the 1st quarter of Year 2011. The debt to equity ratio is also good at .53:1. Overall, ALI has huge cash in the coffers and can capitalize on every market opportunity.

Since the company is growing and with it's steady net income and on it's way of achieving it's 10 billion pesos net income target, it might be beneficial to include it in the stock portfolio.


FPH - this stock is recommended by Bo Sanchez.(by the way, if you want to know his stock recommendation, please click on the Truly Rich Club banner on the right side).


I checked Citiseconline's research on this and below is there analysis on FPH.


Cheap from all angles.  FPH’s is cheap, no matter how you value the stock. At Php57.00,
the stock is trading at a 30.3% discount to its market based NAV of Php82/sh.  It is also 
trading at a very compelling 2010E P/E of 8.7X vs. the PSEi’s 10.5X.  Moreover, FPH is 
currently trading at a steep 28.75% discount to our fair value estimate of Php80.00/sh, 
which is conservative since it includes a 20% holding company discount.  


Cash hoard now secure. FPH will be in a net cash position of Php7.6Bil following the sale 
of its 6.7% stake in Meralco to the Metro Pacific group, based on our estimates. FPH plans 
to use its cash hoard to maximize shareholder value.


FPH could be one of the highest dividend paying stocks this year. After resuming its 
Php1.00/sh cash dividend in 2009, management said it will pay a Php2.00/sh this year. 
Based on a Php2.00/sh cash dividend, FPH’s dividend yield would be 3.5%, making it one 
of the highest yielding issues in the market.


MWIDE - The outlook for the property sector is bright because of the strong economy, growing OFW remittances and skyrocketing tourism. The ties of MWIDE with Henry Sy will ensure billions worth of revenues in the coming years because SM Malls are sprouting like mushrooms everywhere. Also since MWIDE uses high technology in construction (it is the first company actually to extensively use advance technology), it has a big advantage right now compared to Ayala Land and Megaworld. It is also setting up a billion pesos precast manufacturing complex that will increase its production and lead time.


MWIDE is bidding for government projects also this year as it tried to spread the profit from SM to other clients.


SCC - is a defensive company and is not vulnerable from cyclical downturns. It is a great company with competent management. The power plant business is slowly gaining momentum and will realize its full potential in a couple of years. Global demand for coal is soaring coal prices are skyrocketing. Being the only large scale coal producing company in the Philippines, it is well established to capitalize on global energy demand and a rising Philippines expected to gobble up more electricity. As one of the large companies giving a large dividend pay-out, it’s worth including SCC shares in my portfolio. 


VLL - After checking the Price Earnings of other real estate listed in the stock market, VLL is on the bottom part but I believe that sooner the correct fair value of the company will reflect in the market. The recent buy back of the Company and the management's confidence in their own internal processes and financial condition, reflects the company's belief that it's share price is grossly undervalued. The current ratio is very strong, and the longterm debt are manageable. 2011 could be a record year and given the hot property market still soaring, VLL can capitalize on this. It is a cash rich company and it's subdivisions are well known throughout the country.

The ratios and key performance indicators I mentioned above were based from 1st quarter 2011 reports. It's latest financial reports strongly suggests that VLL is undervalued and is currently selling at a bargain.

MWIDE: BUY RECOMMENDATION

PSE finally broke the 4250 resistance. It's good news for all of us. Foreign investors has been buying our stocks pouring their dollars into our economy. No doubt, the peso is getting stronger nowadays. Just today alone, foreign investors bought 470 million pesos worth of shares. Now, imagine that with the 1st week of April when the bull market started, billions of pesos worth of shares were bought by foreigners already. That has a big impact on our economy and peso-dollar exchange. Most of the shares are going up.

Today, I checked Megawide Construction (MWIDE) shares and was astonished at the number of shares bought. The volume suddenly increased exactly at 11 am today with more than 5 million shares being bought. Since the average shares being bought everyday is 200k shares, todays transaction is unusual. BUYERS are flocking! 80% of those shares were bought by Citiseconline and UBS. 

MWIDE was incorporated in the Year 2004 with Mr. Micheal Cosiquien and Mr. Edgar Saavedra as the major stockholders.  (These names aren't familiar to me, perhaps I will start recognizing them).73% of the revenues of MWIDE came from SM MALLS, SM housing projects and other SM projects. Since most of SM Malls were being constructed by MWIDE, Henry Sy bought 20% of MWIDE stocks when it went public last February 2011 . MWIDE has already become a byword in the real property sector since its inception in the stock market.

The outlook for the property sector is bright because of the strong economy, growing OFW remittances and skyrocketing tourism. The ties of MWIDE with Henry Sy will ensure billions worth of revenues in the coming years because SM Malls are sprouting like mushrooms everywhere. Also since MWIDE uses high technology in construction (it is the first company actually to extensively use advance technology), it has a big advantage right now compared to Ayala Land and Megaworld. It is also setting up a billion pesos precast manufacturing complex that will increase its production and lead time.

Unless SM runs out of space to build SM malls which may happen after a decade or so, the company's earnings will compete with that of ALI and Megaworld. By the time SM Malls become saturated in the market, you already have a great return on your investment with MWIDE. MWIDE is also planning to remove their dependency on SM and will go with other construction projects like hotels, housing and high-rise buildings. Given with their competitive advantage in utilization of modern technology in constructing buildings coupled with their pre-cast manufacturing complex, it will not be long before it will be held at the level of Ayala Land and Megaworld.

The prospects are good in the coming years but we need to see how it will play out once SM projects are all completed. That will be the time whether MWIDE can stand on its own.