Semirara Mining Corporation (SCC) has been one of my portfolio's favorites for some time now. The company started off in 1977 as a coal mining company and has since transformed itself into a power generating firm as well; fed by the same resource they mine. DMCI took over in 1997 and has been publicly traded since 2005. The price of a share has grown 270 something percent and as of today is trading at 183.80 pesos per share.
Some of my friends who have been trading for some time know that this stock is something still worth looking at. First Metro has rated its NAVPS to be worth 199 pesos, I disagree and believe its worth more.
The first 9 months of 2010 saw earnings grow from 1.8 Billion Pesos for the full year 2009 to 3.2 Billion Pesos with one more quarter to go; 2011 earnings are estimated to smash all of that and be worth around 80 percent more with power generation making up majority of income. Power generation is not something SCC has been historically associated with; back in 2009 it contributed nothing to SCC's income, 2010 it's estimated to contribute 1/3rd, and in 2011 it's supposedly expected to contribute 2/3rds. That being said, with First Metro's forecasted earnings for 2011 to be worth 6.5B pesos, I've estimated its 2011x PE ratio to be around 10 with today's share price.
So what have I been doing with SCC? I've been purchasing and holding since it was 140 pesos a share and I have continued to do so. Do I think it has some more room to grow? Yes, I do.
Nice entry on SCC.. I traded SCC for a quite time now and banked profit out of it for short term investment. SCC has a great dividend highlight and good for long term too.. and im guessing you are gonna hold it for a while. ^_^
ReplyDeletehappy new year and good luck.
--coffeebuff
@coffeebuff
ReplyDeleteI see we have two things in common; the stock market and the love of coffee. Anyhow, you're right I do expect to hold on to SCC for a while.
haha, i have scc and drink coffee too, that makes the 3 of us. scc should rise specially if the rumored tieup with mer for 3 power plants will push through.
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