Is GTCAP fundamentally and technically sound to buy based on their March 2020 financial report and current price?

GT Capital Holdings, Inc. (GTCAP) was incorporated on July 26, 2007 as a holding company. GTCAP is the primary vehicle for the holding and management of the diversified business interests of the Ty family in the Philippines. The Company holds interests in banking; automotive assembly, importation, distribution, and financing; property development; life and non-life insurance; and infrastructure and utilities. 

GTCAP's subsidiaries are Federal Land, Inc.; Toyota Motor Philippines Corporation; Toyota Manila Bay Corp.; and GT Capital Auto Dealership Holdings, Inc. The Company also has significant shareholdings in Metropolitan Bank & Trust Company; Metro Pacific Investments Corporation; Philippine AXA Life Insurance Corporation; Toyota Financial Services Philippines Corporation; and Sumisho Motor Finance Corporation.

As of July 23, 2020, GTCAP was last traded at 438php per share, down by 55% compared to their 52-week high price. What valuation can we get from their March 2020 quarterly report?

Trailing P/E: 438/91.6= 4.8 Indicating that for every 1php income last 2019, investors are willing to pay or are paying 4.8php only. It is said that an overvalued company would be the one trading at a rate that’s 50 times earnings, or this could be a gauge on how optimistic are investors on this company. A lower P/E may imply low in optimism perhaps due to lower expectations on future earning, or news i.e pandemic that greatly impacts investor optimism. 

For a growth rate of 56.9% change in EPS from 2018 to 2019, the PEG ratio would be 4.8/56.9=0.08 meaning, investors are paying 4.8php per earning relative to the growth rate of 56.9% from 2018 to 2019. A PEG ratio of less than 1 is usually considered undervalued.

Price to Book Value per share (P/B) = 438/760.14= 0.57, meaning, the current market price per share is 42.4% lower compared to the real worth of the company as based on their March 2020 financial report. A P/B of less than 3 is potentially undervalued

However, due to pandemic, their first 3 months net income dropped by 25.7%

Still, fundamentally, based on the parameters above, this share seems to be a good buy to accumulate.

However technically, the MACD seems to indicate bearish momentum. RSI also continues to move to an oversold level, it may be a good strategy to buy this stock while in a bearish mode as this will definitely bounce back. Caveat 

Is ALI fundamentally and technically sound to buy based on their March 2020 financial report and current price?

Ayala Land, Inc. (ALI) was formerly the real estate division of Ayala Corporation (AC) and was incorporated on June 30, 1988 to focus on the development of its existing real estate assets. In July 1991, the Company became publicly-listed through an initial public offering of its primary and secondary shares on the Makati and Manila Stock Exchanges.

ALI is engaged in the planning and development of large scale, integrated estates having a mix of use for the sale of residential lots and buildings, office buildings and commercial and industrial lots, leasing of commercial and office spaces and the development, operation and management of hotels and resorts. The Company also develops commercial and industrial parks and is also engaged in property management, construction and other businesses like retail and healthcare. 

Among the Company's subsidiaries are Alveo Land Corporation; Avida Land Corporation; Ayala Property Management Corporation; Makati Development Corporation; North Triangle Depot Commercial Corporation; Laguna Technopark, Inc.; and Ten Knots Philippines, Inc.

As of July 17, 2020, ALI was last traded at 31.7php per share, down by 3.65% from the previous trading. What valuation can we get from their March 2020 quarterly report?

Trailing P/E: 31.7/2.25= 14 Indicating that for every 1php income last 2019, investors are willing to pay or is paying 14php. It is said that an overvalued company would be the one trading at a rate that’s 50 times earnings, or this could be a gauge on how optimistic are investors on this company. A lower P/E may imply low in optimism perhaps due to lower expectation on future earning, or news i.e pandemic that greatly impact investor optimism. 

For a growth rate of 13.6% change in EPS from 2018 to 2019, the PEG ratio would be 14/13.6=1 meaning, investors are paying 14php relative to the growth rate of 13.6% from 2018 to 2019. A PEG ratio of less than 1 is usually considered undervalued, in this case, the market price seems to be just right relative to growth rate 

Price to Book Value per share (P/B) = 31.7/16.39= 1.9, meaning, the current market price per share is around 1.9 times higher compare to the real worth of the company as based on their March 2020 financial report. A P/B of less than 3 is potentially undervalued.

However, due to pandemic, their first 3 months net income dropped by 41%, still fundamentally, based on the parameters above, this share seems to be a good buy. 

However technically, the MACD seems to indicate a bearish momentum. RSI also continues to move to an oversold level. If I’m to buy this share, I’ll wait few more trade to see whether the momentum has a sign of reversal to bullish mode.

Disclaimer: Trade or invest at your own risk.

PSE Companies Issuing Dividend for Month of July 2020

Source: PSE edge

FAQ about Dividends

Q1. What is Ex dividend Date?

A1. It means the date set by the Exchange starting from which the buyer is no longer entitled to the dividends. Currently set at 3 business days before record date.

Q2: What if I buy stocks before Ex dividend date, will I be entitled for the dividend?

A2. Yes, but if you purchase a stock on the ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.

Q3: What if I buy stocks before ex dividend date but sell it before the record date or payment date, will I still be entitled for the dividend?

A3: Yes you will still be entitled, but note that by the time the stock is sold, it will decline in value by the amount of the dividend. The broker will get the commission and the buyer might just break even.

Why does the stock price decline right after the dividend is paid? Because that's the way the markets work.

Key Takeaways

- When a stock dividend is paid, the stock's price immediately falls by a corresponding amount.

- The market effectively adjusts the stock's price to reflect the lower value of the company, which could wipe out any gain sought by a short-term buyer.

- In addition, the buyer owes taxes on those dividends.

Click here for the source

Q4: What is record date?

A4: It means the date on which stockholders must officially own shares in order to be entitled to any shareholders rights or dividends, but if you buy share on this date, you will not be entitled, you must buy before ex dividend date to be entitled. 

Is EW fundamentally and technically sound to buy based on their March 2020 financial report and current price?

East West Banking Corporation (EW) was registered with the Securities and Exchange Commission on March 22, 1993. The Company was granted authority by the Bangko Sentral ng Pilipinas (BSP) to operate as a commercial bank in 1994 and commenced operations on July 8 of the same year. 

EW's principal banking products and services include deposit-taking, loan and trade finance, treasury, trust services, credit cards, cash management and custodial services. The Company offers the financial services to consumer and corporate clients. On January 25, 2012, EW obtained from BSP the approval to operate as a universal bank.

On May 6, 2016, EastWest and Standard Chartered Bank Philippines (SCB PH) entered into an agreement for SCB PH’s retail business. Under the agreement, the credit cards, personal loans, wealth management and deposits of SCB in the Philippines will be migrated to EastWest.

The Company's wholly-owned subsidiaries are East West Rural Bank, Inc.; East West Insurance Brokerage, Inc.; Quest Marketing and Integrated Services, Inc.; East West Leasing and Finance Corporation, and Assurance Solutions Insurance Agency. EW also owns 50% of East West Ageas Life Insurance Corporation, a life insurance firm formed with Ageas Insurance International N.V.

As of December 31, 2018, EW has a network of 390 branches and 583 automated teller machines, majority of which are located within Metro Manila.

 

As of July 15, 2020, EW was last traded at 7.37php per share. What valuation can we get from their March 2020 quarterly report?

Trailing P/E: 7.37/2.77= 2.6 Indicating that for every 1php income last 2019, investors are willing to pay or is paying 2.6php only. It is said that an overvalued company would be the one trading at a rate that’s 50 times earnings, or this could be a gauge on how optimistic are investors on this company. A lower P/E may imply low in optimism perhaps due to lower expectation on future earning, or news i.e pandemic that greatly impact investor optimism.

For a growth rate of 38.5% change in EPS from 2018 to 2019, the PEG ratio would be 2.6/38.5=0.06 meaning, investors are paying 2.6php relative to the growth rate of 38.5% from 2018 to 2019. A PEG ratio of less than 1 is usually considered undervalued.

Price to Book Value per share (P/B) = 7.37/22.74= 0.3, meaning, the current market price per share is 67.5% lower compare to the real worth of the company as based on their March 2020 financial report. A P/B of less than 3 is potentially undervalued

In spite of pandemic, their first 3 months net income increase by 74.7%.

Fundamentally, based on the parameters above, this share seems to be a good buy to accumulate. Once the pandemic is over, this share will eventually catch up to its real worth.

However technically, the MACD histogram seems to indicate a sideway momentum. If you are into longterm investing, I suggest you accumulate this share.

Disclaimer: Trade or invest at your own risk.

Is FGEN fundamentally and technically sound to buy based on their March 2020 financial report and current price?

First Gen Corporation (FGEN) was incorporated and registered with the Securities and Exchange Commission on December 22, 1998. FGEN and its subsidiaries are involved in the power generation business. FGEN is the largest clean and renewable Independent Power Producer in the Philippines, with a total installed capacity of 3,490 MW as of December 31, 2018. 

The Company owns power plants which utilize natural gas, geothermal, wind, hydro and solar power, all of which are operational and majority-owned and controlled by the Company through its subsidiaries. These subsidiaries include First Gas Power Corporation, FGP Corp., First NatGas Power Corp., Prime Meridian Powergen Corporation, FG Bukidnon Power Corporation, and Energy Development Corporation.

As of December 31, 2018, First Philippine Holdings Corporation directly and indirectly owns 66.98% of the common shares of FGEN and 100% of FGEN's voting preferred shares. Lopez, Inc. is the ultimate parent company of FGEN.

As of July 6, 2020, FGEN was last traded at 25.7php per share or 0.52USD. What valuation can we get from their March 2020 quarterly report?

Trailing P/E: 0.52/0.07= 7.4 Indicating that for every 1USD income last 2019, investors are willing to pay or is paying 7.4USD. It is said that an overvalued company would be the one trading at a rate that’s 50 times earnings, or this could be a gauge on how optimistic are investors on this company. A lower P/E may imply low in optimism perhaps due to lower expectation on future earning. 

For a growth rate of 40% (change in EPS from 2018 to 2019), the PEG ratio would be 7.4/40=0.19 meaning, investors are paying 7.4USD relative to the growth rate of 40% from 2018 to 2019. A PEG ratio of less than 1 is usually considered undervalued.

Price to Book Value per share (P/B) = 0.52/0.61= 0.8, meaning, the current market price per share is 14.7% lower compare to the real worth of the company as based on their March 2020 financial report. A P/B of less than 3 is potentially undervalued

The first 3 months net income dropped by 19.6%. 

Fundamentally, based on the parameters above, this share seems to be a good buy.

However technically, the MACD histogram seems to indicate a decline in momentum  prompting profit taking. Meanwhile, RSI also already reach the overbought level signalling a downward momentum

Disclaimer: Trade or invest at your own risk.

Is MM current market price justified fundamentally?

MerryMart Consumer Corp. (MM), formerly Injap Supermart Inc., is a consumer-focused retail company principally engaged in the operation of retail stores in the supermarket and, beginning January 30, 2020, household essentials category. MM, through its subsidiary, MerryMart Grocery Centers Inc. (MMGC) intends to pioneer the franchise business model covering supermarkets and household essentials stores in the Philippines (collectively, MM and its subsidiary, MMGC, are known as the 'MM Group').

Currently, the MM Group owns and operates seven MM branches nationwide, with an aggregate selling space of 9,331 square meters. The MM Group aims to open six more MM branches by the second quarter of 2020, six additional branches by the third quarter of 2020, and have a total of 100 branches located all over the Philippines by the fourth quarter of 2021.

MM is a wholly-owned subsidiary of Injap Investments Inc., which also owns 35% of DoubleDragon Properties Corp.

As of July 2, 2020, MM was last traded at 3.29php per share. This company was recently listed last June 15, 2020, and released their first quarter report the other day. What valuation can we get from their March 2020 quarterly report?

Trailing P/E = 3.29 / 0.03 = 109.6 Indicating that for every 1php income last 12 months, investors are willing to pay or is paying 109.6php. It is said that an overvalued company would be one trading at a rate that’s 50 times earnings, or it could be an optimism whereby investors expect earnings growth in the coming quarters and, as a result, investors have been buying the stock in anticipation of its appreciation. MM nature of business is like of that PGOLD and RRHI which are companies that are already established, the P/E’s of these companies are below 20, yet MM P/E is above 100. Having said this, I say that the expectation is a bit much, thus it’s potentially overvalued.

Price to Book Value per share (P/B) = 3.29 / 0.07 = 47, meaning, the current market price per share is 47 times higher that the real worth of the company as based on their March 2020 financial report. A P/B of more than 3 is potentially overvalued.

Even though the net income for the first 3 months this year increased by 50.5% from the last year first 3 months, still, based on the P/E comparing it with established companies, the current price seems to be not justified, not to mentioned the P/B ratio.

Disclaimer: Trade or invest at your own risk.

Is DITO fundamentally and technically sound to buy?

DITO CME Holdings Corp. (DITO), formerly ISM Communications Corporation (ISM), was originally a mining company incorporated in March 1925 under the name Itogon-Suyoc Mines, Inc. As ISM, the Company was engaged in information technology, multimedia telecommunications, and other similar industries. On March 6, 2020, the Securities and Exchange Commission (SEC) approved the change in corporate name to the present one. 

DITO currently has no operating business. The Company is doing business as a holding company as it was since 2016.

On December 10, 2019, the Board of DITO approved the acquisition of Udenna Communications Media and Entertainment Holdings Corp.

As of July 2, 2020, DITO was last traded at 3.44php per share. Its market price is 51.4% lower from its 52 week high. Is this fundamentally cheap and technically time to buy? 

Trailing P/E is negative because of the loss in income last 2019 and even in 2018. Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks. 

Technically, the MACD histogram is indicating a decline in momentum, thus we might see a continuation in profit taking, the same goes with RSI indicator.

Disclaimer: Trade or invest at your own risk.

How expensive is BDO fundamentally based on their March 2020 financial report?

BDO Unibank Inc. (BDO), originally known as Acme Savings Bank, was acquired by the SM Group in 1976. BDO listed its shares on the Philippine Stock Exchange on May 21, 2002. The Company merged with Equitable PCI Bank in May 2007. 

BDO offers an array of products and services, i.e. retail banking; lending (corporate, commercial, consumer, and SME); treasury; trust; credit cards; corporate cash management; and remittances. Through its subsidiaries, the Company offers leasing and financing; investment banking; private banking; bancassurance; insurance brokerage; and stock brokerage services.

The Company's local subsidiaries include BDO Private Bank, Inc.; BDO Leasing and Finance, Inc.; BDO Capital & Investment Corporation; BDO Nomura Securities, Inc.; and BDO Insurance Brokers, Inc. The Company also has foreign subsidiaries in the US, Hong Kong, Italy, Japan, Canada, and Macau. The Company's associates include NLEX Corporation; SM Keppel Land, Inc.; Northpine Land Inc.; Taal Land, Inc.; and MMPC Auto-Financial Services Corporation.

As of December 31, 2018, BDO has 1,309 operating domestic branches (inclusive of one branch each in Hong Kong and Singapore), 4,325 automated teller machines and 484 cash deposit machines.

As of June 29, 2020, BDO was last traded at 94PHP per share. Its market price is  41.9% lower from its 52 week high. Is this fundamentally cheap and technically time to buy? 

Trailing P/E = 9.4 Indicating that for every 1php income last 2019, investors are willing to pay 9.4php.

Trailing PEG Ratio = 0.3, meaning, investors are willing or is paying 9.4php for every peso income last 2019 relative to growth growth rate of 35.4% which is the change of EPS from 2018 to 2019. A PEG ratio of less than 1 is considered undervalued.

Price to Book Value per share (P/B) = 1.1, meaning, the current market price per share is just 1.1 times higher that the real worth of the company as based on their March 2020 financial report. Usually, a P/B of less than 3 is considered undervalued.

Technically, the MACD momentum is in selling signal. RSI also is indicating a continuation of selling.  If I’m the investor, I would wait first for a sign of momentum reversal and not enter yet, but fundamentally, this is a good stock to accumulate. 

Disclaimer: Trade or invest at your own risk.

How expensive fundamentally is COL based on their annual report?

COL Financial Group (COL), formerly CitisecOnline.com, Inc., was incorporated on August 16, 1999, and on February 21, 2012, SEC approved the Company's application for the change in company name to the present one. COL engages in the business of brokerage and/or dealership of securities, and to provide stock brokerage services through the internet. 

The Company provides its customers with an array of products and services including full-service online stock brokerage, wide selection of mutual funds in a single platform, professional equity advisory services, investing tools and functionalities, research support, investor education seminars, market updates and information-driven briefings, and customer support.

In April 2017, Daiwa Securities Group, Inc. (Daiwa) acquired 14.9% of COL, giving Daiwa the opportunity to participate in the Philippine retail trading segment. Daiwa is an established financial services firm in Asia.

The Company owns 100% of COL Securities (HK) Limited, formerly CitisecOnline.com Hong Kong Limited, a foreign subsidiary domiciled and incorporated in Hong Kong, which primarily acts as a stockbroker and invests in securities.

As of June 26, 2020, MPI was last traded at 17.5PHP per share. Its market price is  7% lower from its 52 week high. Is this fundamentally cheap and technically sound to buy?

Trailing P/E = 18.2 Indicating that for every 1php income last 2019, investors are willing to pay 18.2php.

Technically, you can see that the MACD is still in bullish momentum, but RSI seems to indicate a peek in overbought indicator, signalling a sell off for profit talking.

In conclusion, P/E seems to suggest overvalued and the graph seems to indicate profit taking. 

If you want to know more about the fundamentals in terms in PEG and Price to book value, message me here.

Disclaimer: Trade or invest at your own risk.

MACD and RSI indicator of MEG Share as of Yesterday

Above is the latest MEG graph. As of yesterday's trading, MEG closed at 3php.

As you can see, for the 6 consecutive tradings, the market price keeps dropping causing the signal line to cross MACD line signaling a selling point, while RSI is in the direction of getting oversold.

What does this entail? Technically, MACD is still in the bullish trend as it still above zero lines, but the direction of its momentum seems to be going down along with the RSI getting oversold. In the next few days, we might see a bounce back.

I’m waiting for the RSI to reach a point of at least 40, I might accumulate more of this. 

My confidence stems from its fundamentals. Based on the market price yesterday.

Price to book value = 0.5 (based on 2019 annual report) Indicating that the current price is half the value of the real worth of the company.

Trailing P/E = 5.5 Indicating that for every 1php income last 2019, investors are willing to 5.5php, usually, this could indicate that the stock is either losing its popularity or undervalued, my bet is the latter.

Trailing PEG Ratio = 0.3 Indicating that for a growth rate of 17.3% (change in EPS from 2018 to 2019), investors are willing to pay 5.5php for every 1php income last 2019. Stocks like this are usually fundamentally undervalued. Typically, you should be willing to pay for every peso income more than the growth rate, but this share seems to indicate otherwise, thus undervalued.

Disclaimer: Trade or invest at your own risk.

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How expensive is MPI fundamentally based on their March 2020 financial report?

Metro Pacific Investments Corporation (MPI) was incorporated on March 20, 2006 as an investment holding company. The Company is organized into the following segments based on services and products: water; toll roads; power generation and distribution; healthcare services; light rail and logistics.  

The Company's subsidiaries are Manila Electric Company; Global Business Power Corporation; Metro Pacific Tollways Corporation; Maynilad Water Holding Company, Inc.; Metro Pacific Hospital Holdings, Inc.; Metro Pacific Light Rail Corporation; and MetroPac Logistics Company, Inc.

As of December 31, 2018, MPI's investments outside the Philippines include an effective ownership of 29.5% in Don Muang Tollway Public Ltd, a Thai toll road operator, and 44.9% in CII Bridges and Roads Investment Joint Stock Company, a toll road company located in Ho Chi Minh City in Vietnam and 75.9% in PT Nusantara Infrastructure Tbk, a listed Indonesian infrastructure company with two main businesses: toll roads and telecommunication towers and small businesses in water, ports and energy.

As of June 23, 2020, MPI was last traded at 3.82PHP per share. This stocks was of the top gainers from yesterday’s trading, this is one of the PSE index company. Its market price dropped by 27% from its 52 week high, largely because of the COVID19 pandemic. But is it now fundamentally cheap to buy? 

In terms of P/E, MPI recorded a trailing P/E of 5.03, meaning, for every 1Php earning last 2019, investors of this company are willing or are paying 5.03Php. With 5.03 P/E and with 68.8% growth rate (change in EPS) from 2018 to 2019, the company trailing PEG ratio would just be 0.07 which would he considered undervalued. 

In terms of price to book value, the current market price is currently 35.3% lower than the book value as recorded in their March 2020 financial report, meaning, the company is perceived to be 35.3% lower compared to the real worth of the company. In terms of this parameter, I say, it’s also undervalued.

However, the income for the first 3 months this year dropped by 46%, expectedly due to COVID19.

Is this a good stock to accumulate fundamentally in this pandemic period? The parameters above seems to suggest yes.

Technically, the MACD indicator seems to suggest that it’s in the bullish mode. And that signal line seems to indicate a not too soon crossover for selling signal.

Disclaimer: Trade or invest at your own risk.

How expensive is Cirtek Holdings (TECH) fundamentally based on their March 2020 financial report?

Cirtek Holdings Philippines Corporation (TECH) was registered with SEC on February 10, 2011 and is the holding company of Critek Electronics Corporation and Cirtek Electronics International Corporation. 

Through these subsidiaries, the Company primarily provides service/turnkey solutions including wafer probing, wafer back grinding, assembly, and packaging and final testing of semiconductor devices; and offers manufacturing solutions for value-added, highly integrated radio frequency, microwave and millimeter wave technology products.

As of June 19, 2020, TECH was last traded at 8.86PHP or 0.18USD per share since their financial statement is in terms of USD. This stocks is recommended by Philstocks to trade. Its market price dropped by at least 60% from its 52 week high, largely because of the COVID19 pandemic. But is it now fundamentally cheap to buy? 

In terms of P/E, TECH recorded a trailing P/E of 18, meaning, for every 1USD earning last 2019, investors of this company are willing or are paying 18USD. With 18 P/E and with no or zero growth rate (change in EPS) from 2018 to 2019, the company trailing PEG ratio would he considered overvalued.

In terms of price to book value per share, the current market price is currently 9 times higher than the book value as recorded in their March 2020 financial report, meaning, the company is perceived to be just 9 times higher compared to the real worth of the company. In terms of this parameter, I say, it’s also overvalued.

Is this a good stock to accumulate fundamentally in this pandemic period? Nope, this stocks is technically being traded.

Technically, the MACD indicator seems to suggest that it’s in bullish mode. And that signal line seems to indicate a not too soon crossover for selling signal, which suggest trading. 

Disclaimer: Trade or invest at your own risk.