First a word of warning: my own style prevents me from buying up already expensive stocks, so Im wary in endorsing DNL, for example, or buying up DNL if you already have one. Those methods could suit perfectly these times when the PSE is on a tear to attempt to breach 8000, but that is not in my personal disposition to pursue.
And so my pick this week is LRI
LRI will open their new cement processing plant soon. This will immediately add to the top and bottom lines of the company. It's also heartening to see foreigners maintaining buying interest here last week, and that the trading volume in this issue is still high.
For medium term, construction in the Philippines is still booming (a big contributor to the GDP good news). And Cement should be one of the main beneficiary of this continuing boom. When a bubble is detected, then LRI and MEG and the rest will go down, down. down. But so far, no indication of a bubble yet.
Disclosure though,
1) I already profited here. I sold all my position (four tranches) in this stock at a hefty +29% gain just a few days back, and reentered one tranche at 10. Im waiting to add at 9.8 and 9.5.
2) Im also waiting and personally, secretly, pining for a bubble so those condos would be priced right, so I can buy one near office.
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I will also probably buy back the chunk of position (5 tranches) of AGI that I sold at 25.25. Re-entry price shall be near 24 or 24.5. This is on the belief that this conglomerate should catch up soon to its peers.
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