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 

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.

Paano mag remit online sa I-remit singapore?

Just today nag announce ang MOM na kailangan ng mag pa-appoint muna sa remittance kung ito ay pupunta para mag remit.

Click here to read MOM announcement.

Sa mga kababayan ko na hindi pa alam paano mag remit online sa Iremit gamit ang online platform nila. Ituturo ko sya dito step by step, paano gawin in a hope na sana makatulong kung gusto ng mga kababayan ko na mag remit na hindi pumupunta sa remittance center.

Step 1: E download ang IREMITX application sa apple store kung iPhone user ka. Hindi ko kabisado yung sa Android phone, pero I presume na meron din application ang Iremit dito.

Step 2: Pag na download muna, mag join ka, then, e reredirect ka ng application papunta sa registration page, sundan mo lang yung instruction, note na ipapa picture sayo yung NRIC mo at mag papa take ng selfie to verify na ikaw yung nandun sa NRIC.

Step 3: Pag naka register ka na, mag sign in ka sa account mo, e reredirect ka sa dashboard page kung saan makikita mo ang mga features ng application, click or choose send money, makikita mo yung current na exchange rate and details na kailangan mo e fill up.

Step 4: Pag na click mo ang service mode, makikita mo ang mga option, tulad ng credit to bank account, cash pick up etc. Pag e-click mo naman ang payment method, meron dalawang option, (1) online transfer at (2) ATM cash deposit. Pag prefer mo ang online transfer, kailangan mo e transfer sa iremit dbs account yung amount na e re-remit mo, at kailangan yung dbs account na gagamitin mo sa pag tranfer papunta sa iremit account ay nakapangalan sayo. Kung wala ka naman dbs account na sarili mo, pwede mo piliin ang ATM cash deposit, dito my specific requirement sila, dapat ang total amount mo ay divisible by 10sgd, ibig sabihin, dka pwede magpadala ng 105sgd, or 115sgd and so forth.

Step 5: Pag natapos muna yung step 4, click mo lang ang next, e re-redirect ka sa page below, then add mo yung benefeciary mo, fill up mo lang yung mga kailangan e fill up.

Step 6: Pag ok na yung step 5, click next, e reredirect ka sa paymet instruction as below, depende sa payment method mo, para sa ATM cash deposit, refer to the left, kung online transfer naman, refer to the right, please read the important notes also, after reading, click next para e direct ka sa confirmation page, kapag ok na lahat, click confirm. After that, you will receive an email about your transaction, by then, within 24 hours dapat ma transfer mo or ma deposit mo sa iremit account yung pera e reremit mo. Once confirmed na ng Iremit yung deposit na usually tumatagal ng isang oras more or less, makaka receive ka ng electronic receipt ng successful remittance, then tapos na. Usually, the same day marereceive ng beneficiary mo yung padala mo, weekdays or weekend man

Side note: Ito ba ang best option para sa OFW as online remittance para iwas crowd? Para sa akin, kung my DBS account ka, meron din silang service na remittance, no fees pa sa DBS, medyo mas mababa nga lang yung palitan sa DBS remittance, pero dahil my service fee na 4sgd sa iremit, mas napapamahal ka pa actually sa iremit kaysa DBS at least in my experience. Ang nakita ko lang na advantage sa iremit is that, kahit weekend or holiday pag nagpadala ka sa kanila, usually ma receive agad ng pinadalhan mo within the day. Sa DBS naman, since walang banko sa sabado at lingo, next working day pa ma cre-credit sa pinadalhan mo.

Sa pag tatapos, sana makatulong ito sa mga kababayan nating OFW na nag tratrabaho dito sa Singapore, para iwas crowd.