Saturday, October 19, 2013

6800 in 2 weeks, choosing index stocks.

My bet is that we'll be at 6800 again 2 weeks. After reaching that level, some that has been caught holding the bag there last June-July will opt to exit. We also might be at overbought levels by that time, so it's more probable to have some correction by then.

This is +3% from where we are now and some index stocks will of course rise more than others. Which PSEi component to ride hoping it will be the leader?

FGEN is one of the most touted (strong buys) by local brokers, presumably because it is 50% away from its highs during June. I added minimum tranche last Friday on my small remaining position just to average down, but I dont have strong conviction that this is on the uptrend already. They must disclose clear plans with target completion dates on when two downed major revenue-producing plant sites will be up again. EDC is also always on the recommended-buy list with FGEN... same need for disclosure/news. These Lopez companies should choose the path of transparency.

SMC has gone up because of their property dividend, but I still down trust The Mechanic and most of the management of San Miguel, specially in terms of how they think about us small-time retail investors.

Favorites JGS, GTCAP, and SCC Ive divested wrongly since they went up strong since I sold them, but my unloading was a decision to have some protection in case the US indeed defaulted. That was the call. Im ready to go back to any three especially if one exhibited a cup with handle.

LTG has been going down. Might be good to buy at 15, but this is one index stock that is not for long term. I also dont trust Lucio's managers.

I still have AGI. I hope to sell all when it nears resistance again at 28.

Although Ive unloaded much already, I still have substantial positions in MEG and MBT. Will sell again once they reach oversold in RSI.

PX--Gold is still volatile. Out with Mining muna siguro.

BLOOM is not attractive to me at current levels. The disclosure on change-operators is also a bit problematic in terms of long-term investors that want stability.

I still don't understand why the Gokongweis were not obliged to disclose their buying price of MER. I wont get into MER again until there's clarity with that.

Still have substantial positions in AEV and AP and intending to hold until Q1 2014. Both are heavy-dividend paying stocks; these should be two that jump in price as we enter 2014.

ICT, GLO, and JFC I consider as missed boats already. Im not a fan of buying high and selling higher for these three, since they have very P/E's at this time. (But I have long-term shares in JFC in certificates).

PCOR I havent studied yet.

MPI--Im inquiring about time frame on the arbitration regarding the water rebasing issue, before getting in again.

MWC I still have an ipit position. Ive added one tranche last week to lower down average. It's too late for me to sell at -20%.

I profitably played (a number of small gains) with DMC during its up and down the past three months. I knew that the Consunjis defend this stock when it's going down to sub 45.  I have some small long-term position in green that will wait until their next dividend announcement next year.

I have no ALI and do not intend to go in at current price above 30.

I have some position in RLC that Im just leaving until March 2014.

Although I profited several times with URC during its ups and down July to September, this stock is still a puzzle. The main question to answer is if it can go back to a steady uptrend. I have no current position and I intend to study URC more.

I entered TEL last week. More on my presumed current state of TEL in another post.

I also entered SMPH with small-tranche last week. I think there's a good chance it can go up to 19.50 at least in the next four weeks. Will observe this closely together with SM (if it can go back to 900 levels before the year ends), but I dont like SM going back to above 26 P/E too fast.

AC is a known favorite by foreigners and always enjoy a higher premium P/E vs. its nearest competitor, which is SM. If I decide to go in, it will be small and something that I will sell fast at 660 or so.

I still hold some position BDO in green. I will sell if it reaches +10% gain.

I sold all my BPI at a small gain before the deadline and threat of default by the US. I wont probably go back at current level of BPI. Potential upside might be greater elsewhere (including non-index pets).

These are all superficial gloss-overs. Best to research way deeper on your own before going in. My only firm suggestion is to not skip the local non-favorites in your study. From participating in forums, I think GTCAP, JGS, SCC, AP, and RLC do not get much attention, and this is undeserved. They might not be apples of the eye and dont get mentions in forums, but they are all very attractive fundamentally, being traded at high volume by foreign and domestic funds, and are not yet expensive in their current valuations. Their recovery and increases at this point are in fact steadier and higher than other index components.

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