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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Know Your Stocks - How Expensive is MEG fundamentally based on their June 2017 Quarterly Report?

Megaworld Corporation was incorporated on August 24, 1989 to engage in the development of large scale, mixed-used planned communities or townships that integrate residential, commercial, leisure and entertainment components. The Company is also engaged in other property-related activities such as project design, construction oversight and property management. On August 19, 1999, the Company changed its corporate name to the present one to coincide with its conversion from a purely real estate company into a holding company, although MEG continues to focus on its core competence in real estate development.

MEG's real estate portfolio includes residential condominium units, subdivision lots and townhouses, condominium-hotel projects as well as office projects and retail spaces. The Company has three primary business segments: real estate sales of residential developments; leasing of office space, primarily to BPO enterprises, and retail space; and management of hotel operations.

Since its incorporation in 1989, the Company and its subsidiaries and associates have launched approximately 560 residential buildings, office buildings and hotels consisting in aggregate of more than 12 million square meters of floor area.

As of December 31, 2016, the Company's subsidiaries and associates include Empire East Land Holdings, Inc.; Global-Estate Resorts, Inc.; Suntrust Properties, Inc.; Richmonde Hotel Group International Limited; Bonifacio West Development Corporation; Suntrust Home Developers, Inc.; Maple Grove Land, Inc.; San Vivente Coast, Inc.; and Palm Tree Holdings & Development Corporation.

As of Sept 11, 2017, MEG was last traded price at 5.30Php, this is 1.29 times higher compared to their recorded book value as of June 2017 quarterly report. In regard to this parameter, a higher market price in comparison to company's net worth could mean the share is over valued but, it could also mean that the investors perceived the company to be worth more than its net worth due to its potential earning.

In terms of P/E, the company recorded a trailing P/E of 15.14 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 15.14Php. With the P/E value and with growth rate of 12.90% from 2015 to 2016, the company trailing PEG ratio would be 1.17 which is more than 1.0 meaning, investors of this company are paying 15.14Php for every 1PHP income last 2016 even if the company grows a bit less than the P/E or 12.90% from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

In terms of income, the first 6 months net income attributable to parents increased by 10.8% in comparison to last year first 6 months net income

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Know Your Stocks - How Expensive is MEG fundamentally based from their Dec 2016 Annual Report?

Megaworld Corporation was incorporated on August 24, 1989 to engage in the development of large scale, mixed-used planned communities or townships that integrate residential, commercial, leisure and entertainment components. The Company is also engaged in other property-related activities such as project design, construction oversight and property management. On August 19, 1999, the Company changed its corporate name to the present one to coincide with its conversion from a purely real estate company into a holding company, although MEG continues to focus on its core competence in real estate development.

MEG's real estate portfolio includes residential condominium units, subdivision lots and townhouses, condominium-hotel projects as well as office projects and retail spaces. Since its incorporation in 1989, the Company and its subsidiaries and associates have launched approximately 371 residential buildings, office buildings and hotels consisting in aggregate of more than 6,786,146 square meters of floor area.

As of December 31, 2015, the Company's subsidiaries and associates include Empire East Land Holdings, Inc.; Global-Estate Resorts, Inc.; Suntrust Properties, Inc.; Paseo Center Building Administration, Inc.; Richmonde Hotel Group International Limited; Bonifacio West Development Corporation; Suntrust Home Developers, Inc.; and Palm Tree Holdings & Development Corporation.

As of April 27, 2017, MEG was last traded price at PHP 4.06, this is just 1.03 times higher compare to their recorded book last December 2016, not expensive yet for most value investor since a PBV of more than 3 is considered expensive.

In terms of P/E, the company recorded a trailing P/E of 11.60 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 11.60Php. With an 11.60 P/E and with growth rate of 12.90% from 2015 to 2016, the company trailing PEG ratio would be 0.90 which means, investors of this company are paying 11.90Php for every 1Php income last 2016 for a 12.90% growth rate from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

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Disclaimer: Trade or invest at your own risk.