Philippine Stock Market Trading Advisory as of May 10, 2010
Two power-related stocks, FPH and FGEN, are now in our list of bargain issues. Their intangible assets have dropped significantly from 2008 to 2009 giving them positive book values. Debt though mainly finances these two companies’ capital expenditures making them less favorable than our other bargain issues.
Socialized-housing specialist FLI, however, proves to be a better BUY. It has a strong financial condition, however, its Return on Invested Capital has been on a three-year decline due to increasing debt and hefty cash dividends declarations in the past two years.
With the market going south, URC, GMA7, RLC, AEV, SM and SMCB are fundamentally sound stocks to look out for to reach bargain levels.
Pymwymi Fund Performance
The Pymwymi Fund is up 12.3%, while the PSEi is up 4.6% from the start of 2010.