The two co-founders of Corpecon Data Research Services (Corpecon Research) each have almost 30 years of experience in Philippine equities, credit analysis and evaluation, data-providing, distressed assets management and corporate finance. Corpecon Research is an independent entity. It is not connected to any financial institution, credit-rating agency, listed or non-listed company. Thus, its views, analysis, valuations and recommendations stand separately from the popular perception of Philippine stocks and the research of other groups.
From data-mining, Corpecon Research has evolved into the research, analysis and valuation of Philippine listed companies based on the Principles of Value-Investing.
Its first product is the Philippine Stocks Guide, a 100-page report on the analysis and valuations of 39 stocks and investment advisories on them and the Philippine stock market. Complementing and guiding buyers of the Philippine Stocks Guide and investors in Philippine equities is Philippine Stock Market Research in this website.
Corpecon Research offers MyRA (My Research Assistant), a customized research and fund management service for local and foreign firms with and without Philippine stocks and economic research and presence in the Philippines. Local and global companies and financial institutions can outsource their Philippine stock market, equities and economic research needs from Corpecon Research. Corpecon Research has provided MyRA to AP Securities, Inc., PNB Securities, Inc., Meridian Securities, Inc. and Eastern Securities Development Corp.
Corpecon Research also offers The Bottomline, a stocks research service for individual investors. This was developed upon the request of individual investors since 2013. It differs from research obtained from stock brokerage houses and other mainstream research. The Bottomline provides daily stock market guidance, stock picks and other information needed by the individual investor to minimize risks and to seek value in the Philippine stock market.
Corpecon Research has three fundamental tools it developed for investor guidance. Corpecon Research also compares and gauges the PSEi against 17 other developed and emerging markets worldwide.
In its search for value, Corpecon Research’s Philippine stocks coverage is now over 147 PSEi, PSEi-related, big, medium and small cap stocks.
The Products and Services of Corpecon Research are Designed to Minimize Risks and to Seek Value in Philippine Equities.
Corpecon Research Fundamental Stock Market Tools
These all stem from Benjamin Graham’s principles and techniques in value-investing. They have been effective in following the mission statement of Corpecon Research of Seeking Value and Minimizing Risks in the Philippine Stock Market.
Developed in February 2011, the PSEi Bands represent five levels to which the PSEi can go within a time period. When the PSEi is below the Central Value, market conditions signal a Buy, and when the PSEi is above the Central Value, market conditions signal a Sell. The components of the PSEi Bands are the PSEi PER and the PH10YTN, thus, they are constantly moving. The first PSEi Bands in 2011 was very accurate in a matter of points away from the actual lows and highs of the PSEi. The PSEi Bands also signaled a Buy in September 2012 before the Philippine stock market rally that ended in May 2013 when the PSEi Bands hit Euphoric Highs signaling a Sell. The method in computing the PSEi Bands is applicable in other stock markets. The Weekly Philippine Stock Market Report which Corpecon Research produces also presents the S&P 500 Bands. It has been effective in signaling Buys and Sells as well for the US market. The performance of the PSEi Bands is documented since inception and can be searched along with other topics in the Corpecon Research website. (The Search box is on the upper right-hand portion of the website just below the picture of the Philippine Stock Exchange)
The PSEi Tracker is the margin of safety rate of the Philippine stock market. It shows if stocks are better than bonds or not. It likewise computes the potential peak the PSEi can go to. In a back-test since 2009, the PSEi tracker (the red line above) has a 95% correlation with the actual PSEi (the blue line above). The actual PSEi followed the PSEi Tracker. The three blue horizontal lines are the PSEi Bands Euphoric High, Central and Low Values. Combining the PSEi Tracker and the PSEi Bands gives investors guidance in a volatile market for superior long term investing. The method in computing the PSEi Tracker is also applicable in other markets notably the S&P 500. In a back-test to check the reliability of this method, the S&P tracker was computed since the inception of the index in 1871. The red line below is the S&P Tracker, while the blue line is the actual S&P index. The two have a very good correlation of 75% from 1871 onwards.
Blended Multiplier Limits
Developed in early 2010, the Blended Multiplier Limits are two numbers (or the two blue bars inside the table above) that separate bargain from expensive stocks. This was the first fundamental stock market tool of Corpecon Research. The bars are based on the average corporate bond yield in the last month. Stocks above the first bar are bargain stocks, while stocks between the two bars are reasonably-priced premium stocks. By averaging them with bargain stocks, investors can still achieve margin of safety. (e.g. in the table: SGI averaged with equal number of shares with AC gives a Blended Multiplier of 23.36x. This is safely below the limit of 26.96x and 41.50x, the blended multiplier of Apple, Inc. (AAPL), the world’s biggest company in terms of market cap). Stocks below the second bar are expensive stocks. The blended multiplier limits in table form have helped produce superior Philippine stock portfolios that have outperformed the PSEi.
The blended multiplier limit also shows market direction. It has an 82% correlation with the PSEi. An increase of the blended multiplier limit from the previous week indicates upcoming market strength, while a decrease of the blended multiplier limit from the previous week indicates upcoming market weakness. The line graphs below show the PSEi and the blended multiplier limit in weekly intervals up to March 2014.
The first ten years of Corpecon Research
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Corpecon Research is at Eastwood Cyberpark Bagumbayan Quezon City Philippines 1110. Thank you.