One of the most frequent questions you will ever hear newbies ask is when to buy or sell. I always end up answering, "When you're comfortable and ready". That seems to get me more questions, they usually start with something like when should I feel comfortable selling and buying.
There aren't that many stocks being traded in the PSE, as a matter of fact I believe there are around 300 securities being traded and only so many with a daily average value turnover of more than 5 million. I actually find this to do more good than bad; with only so many securities that can possibly generate some interest, It gives you enough time to study each one.
What am I driving at?I am comfortable buying a share after, and only after, I study each stock and see if this company would be a company I would want to own or invest in. How far they have gone in the short/long term, how much more upside it has room to grow to, what kind of business are they engaged in, and what are their numbers like compared to other companies in their sector. Questions like that help you determine the actions you'd like to take. Imagine yourself sitting in the boardroom of the company and after careful review of all their number past, present, and future; you are still comfortable being there, then you should probably consider buying or investing.
Now as to the strength of each position, and when to increase or decrease, that's a whole different matter.
So what have I been checking out, aside from the obvious SCC and DMC. I've never been quite a fan of real estate, but VLL has continuously struck me as a company I wouldn't mind holding on to, sit on it, and wait for price to equal its value. Its book value, circa 2009, was rated at 4.37, a more-than 25 percent upside in my opinion and that hasn't even taken into consideration its immense land bank, property price growth, income/sale of 2010, etc. The stock has traded 1.54 and 3.68 the past 52 weeks and @ 3.19 today it seems like its got room to move. With all the re-rating by foreign brokers, it only seems more likely that the stock will keep on increasing in value.
i have vll largely on influence by bloggers of guscosio. a bad past with cmp is hard to erase. in some circles, villar's campaign battle cry of sipag at tiaga is translated sipa at taga. hopefully i will not regret being swayed by others.
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ReplyDeleteCMP? CPM you mean? VLL was actualy something that took me a while to consider, simply cause of the political noise surrounding the company.
I did, however, do my own research and it did seem like VLL is extremely undervalued. These aren't made up numbers or estimates, one can simply check their annual/quarterly reports, disclosures, etc.
tnx 4 d reassurance. i thought vll is the reincarnation of camella and paella. was i wrong? sori f i am.
ReplyDeletei find selling decision-making more difficult than buying decision-making. other traders i know feel the same way. is it also true with you or not? why do you think so?
ReplyDeleteWell yes of course... we hear the saying "buy on dips, sell at peaks" quite a bit. but the truth is, very few people ever get the opportunity to sell at the exact "peak", then we end up feeling seller's remorse. I try to distance myself away from emotions. I usually end up telling myself that for as long as money is made, I'm fine.
ReplyDeleteOf course, when money is not made, that's another story ha ha ha
yes, vll was formerly cmp (camella and paella properties).
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