Philippine Stock Market Trading Advisory

Philippine Stock Market Trading Advisory as of April 30, 2010

Water utility stock MWC has entered our list of undervalued stocks since last week.  In these times of financial turbulence, we recommend at least one utility stock in one’s portfolio.  Utility stocks are defensive in nature and are safer compared to cyclical sectors such as property and tourism.  At 11.8x, MWC is trading below our PER limit of 14.6x.  Aside from bringing down non-revenue water in the East Zone to single digit levels, MWC is looking at bringing its expertise and expand in Vietnam and India.  MWC’s profitability, especially its operating margins, are favorable and financial condition, fair.  With MWC in one’s portfolio, one has a solid revenue stream from the East Zone as well as bright overseas prospects.

Pymwymi Fund Performance

The Pymwymi Fund is up 18.4%, while the PSEi is up 9.5% from the start of 2010.