Monday, November 18, 2013

Pick of the Week for Wk 47: MEG and choose one among the Top 3 banks.

If you've unloaded MEG two weeks ago the moment you saw that it is having a hard time push itself to 3.9, or you noticed that a strong force is preventing it to blow past 4 PhP again, you are lucky! Now is the time to buy again. The company just reported a solid 15% net income increase and its landbank remains very competitive vs SMPH and ALI. And its P/E remains at a very undervalued 11 vs. the two peers. MEG should attempt to go past 3.9 again in 4 weeks and should breach 4 within the year.

My own unloading two weeks ago was prompted by it oversold status at RSI. Observing the chart the past 12 months, it dips every time it goes to oversold status. Also, a factor that added in favor of unloading is that the overall market is still shaky. Even attempted uptrend during the day cant seem to go full blown. There are parties (local and foreign) probably eager to exit specific stocks the moment they see the chance.

I believe it's also time to buy banks that tumbled down a bit last week. Read up and choose between BPI, BDO, and MBT. At worse, you might be forced to hold until March if it does not increase before year end.

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