Hey guys!
Let me start by giving of what I think will be a good stock to own this coming 2011.
I'm a firm believer in DMC, simply because the holding company has invested all in the right places. Its 2011 forecast-ed earnings continues to be higher than 2010's unlike AEV and I think it's PE ratio based on 2011 is hovering around 10-11. It also owns Semirara(SCC) which is not a mere resource play anymore; it has successfully integrated power generation which will drive its 2011 income(2/3rds will come from power gen). I have always said that @ 40 pesos a share DMC is still a buy-able stock.
I have also recently moved away from AEV and have shifted my attention to AP; the reason is that both their PEs are similar and yet AEV rakes more than 3/4ths of its earnings from AP. Earnings are expected to stay flat in 2011, but even so AP is much cheaper than some of its regional peers. If any of you guys are interested in a play in the aboitiz story, I believe AP would be a better company to own. First metro has rated AP's fair price to be around 36 more or less; I personally believe its worth a little more than that.
Lastly, I'd like to share something about UnionBank. The Bank has already beat analysts estimates for this year(which says that earnings will be flat or lower); they intend to have achieve a full-year target of 5 billion pesos, which is around 20-25 percent higher than last year's. It's ROE is the second highest among the banks that are rated by ATR. The company's PE ratio is also lower than what you would see in other financial plays. With a solid dividend policy(similar to other aboitiz owned companies). This bank is a very strong play in the financial sector. I have repeatedly rated UBP to be worth almost double of what its trading at today.
Hope this was a good read guys! Just my two cents! Hope you guys can share your thoughts too :)
Very Nice. Now time to place our bets!
ReplyDeleteyey!!! at least i dont have to bug u that much anymore in ym.. LOL i will be an avid reader norms! =P
ReplyDeleteNice pre... the Cebu Oracle (Naks!)
ReplyDeleteYou should put your pic and profile, like Gus Cosio.. Hehehe!
What do you think about RCB? Its P/E is at 6.18 and its P/BV is at 0.93 but it has a lower ROE though (10.9%)
ReplyDeleteCan you guys tell me what you think?
When i re-considered investing in the financial sector, I considered UBP along with RCB, SECB, and CHIB. My reasons for not choosing RCB despite the numbers is because of some intangible factors that I cannot disclose in this blog(I don't want to be mistaken for someone who starts a rumor). But putting all the fundamentals and intangibles together, I was much more convinced with UBP than the other 3.
ReplyDeletepretzel, i would like to hear ur opinion on mbt. when the sro date payable comes, and the price goes down, is it better to buy some more, sell, or shift to chib or ubp? i have only one bank and prefer to have only one. tnx.
ReplyDelete@anonymous
ReplyDeleteI like MBT, mainly because its the benchmark in its sector. I would buy it @ anything less than 70 pesos. If you want a value stock both CHIB and UBP are cheap "sectorally-speaking".
My personal bias is on UBP, not only does the bank's stellar performance this year require some looking into, but its PE ratio was already one of the lowest to begin with and with the exception of RCB its got one of the lowest P/BV.
Hope that helps