Pick of the week for Wk 49: TEL

If you've already sold and took the gains from MBT, the safest thing to do is stay with cash and wait for an uptrend indicator (check moving averages) before getting in.

The next safest move is to wait for good buy prices on MEG and other 'reliable' favorites. (Remember: they are "reliable" because the company is fundamentally sound).

But if you are really eager to enter some position, buy TEL.

It's current forward P/E is just 15, significantly below 18 P/E of PSE index. The past 12 months, it was unusual for TEL to have market valuation below index. Also, its only competitor GLO is already trading at 21.5 P/E. Either TEL will catch up in short term or it will be the among the first stock to jump up the moment we are on a general uptrend. (Probability-wise, an uptrend must happen within the year or there is really another debilitating bad news for our country).

On top of these positive factors, as mentioned before, TEL is paying out 4-6% dividend annually. Above any time deposit rate from any bank. This offers margin of safety, even if your disposition is a trader rather than an investor.