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.

Vista Land (VLL) at a Bargain Price?

General Information
Vista Land and Lifescapes, Inc. was incorporated in the Republic of the Philippines and registered with SEC, on February 8, 2007. VLL is the holding company of the Vista Group which comprises:
1. Camella Homes and subsidiaries - caters to mid to low end of the market
2. Brittany Corporation-caters to high end segment of the market
3. Crown Asia Properties, Inc-caters to upper middle income market
4. Communities Philippines, Inc.- caters to markets outside Metro Manila and offers residential units.
5. Vista Residences, Inc.-caters to development and selling of vertical projects across the Philippines.

VLL is engaged mainly in the development of residential subdivisions and construction of housing units and condominium. It offers a wide range of product from socialized or affordable housing to middle income and high end house and lots, and condo projects.

Return on Assets (ROA) 1.4%
ROA is computed by dividing the net income against the Total assets. It measures the Company's earnings against the resources it has at it's disposal.

Return on Equity (ROE)2.2%
ROE is computed by dividing the net income against the total equity. It measures the Company's earnings against it's owners money.

Current Ratio 2.89:1
Current ratio is obtained by dividing the current assets against current liabilities. It is used to test the Company's liquidity. The current ratio of VLL is good. It has the ability to pay it's short term liabilities without any sweat because it has almost 3 times ability to pay the current liabilities.

Debt to Equity Ratio .57:1
Debt to equity ratio is obtained by dividing the total liabilities against total equity. It determines the company's borrowing capacity. It also magnifies the ratio on how the company is financing the business in terms of loans and ownership. VLL has a favorable debt to equity ratio because the company is using more money from the owners than from the bank. As we know, bank loans are a little bit higher to finance because of interest expense.

Senator Manny Villar
VLL is owned by Manny Villar and his family according to Wikipedia and Inquirer. As we all know, Sen. Manny became one of Philippines wealthiest person because of real estate. VLL is the largest homebuilder in the Philippines.

P:E ratio 7.5:1
The price earnings ratio is obtained by dividing market share price against earnings per share. According to Investopedia, A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market, as investors are paying more for today's earnings in anticipation of future earnings growth. Hence, as a generalization, stocks with this characteristic are considered to be growth stocks. Conversely, a stock with a low P/E ratio suggests that investors have more modest expectations for its future growth compared to the market as a whole.

The P/E ratio of VLL is one of the lowest among the listed real estate companies. The advantage of this is that once the company's earnings soar in future years, you could earn handsomely because it's stock price will rise. On the other hand, the drawback on a low P/E ratio is that the investors are seeing a modest growth in the company's earnings potential. Based on a limited study, ,VLL's revenues and net income increased as compared to last year. It can have the momentum of growing further and benefit from the strong property market. I think the current share price of VLL is cheap.

Buyback program
Yesterday, VLL announced that it will buy back 1.5 billion of shares because they believed that the share price is undervalued. VLL said that the recent stellar performance of the

company and it's bright future prospects, the management considered it appropriate to buy back it's shares because it is undervalued. Given the company's confidence in meeting it's own internal targets and that 2011 will be a record year, I believe it will be worthwhile to take a look in this company as part of your stock portfolio.

BUY Recommendation
Various stockbrokers including Credit Lyonnaise, Duetsche Bank, Citiseconline, Philippine Equity Partners, Credit Suisse, UBS have analyzed VLL financial condition and operation and have issued a BUY recommendation.

Conclusion
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.

The prospects are good and I'm seeing a midnight sale in PSE and I'm going to grab as much items as I can. Hopefully when my salary will come this month, the midnight sale will still be
there!