Still hitting the ‘buy’ button Den Somera Philippine Daily Inquirer
June 15, 2009
STOCKS recouped their momentum Thursday last week as prices got around for another exciting charge on the last trading session for the week.
Manila Electric Co. (MER) on Thursday made a spectacular one-day climb of 10.69 percent as it closed at P145 per share. Philippine Long Distance and Telephone Co. (TEL) also made a rare similar advance equivalent to 5.94 percent, from P2,355 to P2,495.
Week One at the virtual game:
The Oracle
It was “The Oracle” who drew first blood, so to speak, in the virtual game. He gave buying orders for June 8 trading, which he actually sent the night of June 7, Sunday.
Possibly heeding the advice of experts that most entries in the market could be as good as any time, he gave the orders to buy 100,000 shares of Pepsi-Cola Products Philippines Inc. (PIP) at P1.38 per share and 3,000 shares of Banco De Oro Unibank Inc. (BDO) at P33.50 per share. PIP, according to him, “is trading at the low earnings multiple of only six times its price-to-earnings (P/E) ratio, plus [the fact that] at such price, it’s 40 percent less its 52-week high.” BDO, likewise, has “lots of potential and [could] go back to its highs [above] P50 [per share].” The latter order was invalidated. There was no transaction at such price on the said day.
Trust Me
“Trust Me” also made several buying orders for June 8. His picks were a sprinkling of select stocks on power, property and mining, namely: Philex Mining Corp. (PX) for 20,000 shares at P6.80 per share; SM Prime Holdings Inc. (SMPH) for 10,000 shares at P9.50 per share; and Aboitiz Power Corp. (AP) for 15,000 shares at P5.80 per share.
He believes that since PX “has reached new highs (and following the Turtle’s theory) it has to go up.” Its “oil subsidiary also hit oil in Vietnam; this should boost future income,” he adds. SMPH and AP, on the other hand, “have new projects and good income results, [they] should break new highs.” With “increased capacity with the acquisition of Tiwi-Makban Geothermal Power plant AP’s bottom line will get a boost to be enhanced by granted tax holiday perks.”
Ponkan
Next, is the young “Ponkan.” Her one and only order was invalidated. For June 9, she gave a buy order for 100,000 shares of Swift Foods Inc. (SFI) at P0.22 per share. “Definitely underpriced,” the stock has very small trading volume. Total transaction for the day was 77,000 shares only. Following contest rules, an order that is more than the actual volume transacted on the board will be invalidated. Thus, “Ponkan” has “No trade for the week.”
Cyclereader
As expected, the “cyclereader” was also game. She gave two orders on June 8. Her orders were to buy 58,000 shares of Energy Development Corp. (EDC) at P4.10 per share and 10,800 shares of First Gen Corp. (FGEN) at P23 per share. The first order was invalidated because it came in six minutes after trading started. Her FGEN order was validated at P22.50, the reason being that our virtual orders are always posted before the start of trading. Following actual trading rules, highest bidder gets opening asking price, which in this case was P22.50.
QB Trader
The “QB Trader” had two buy orders for June 10. These were all focused on the telephony industry, namely: Digital Telecommunications Philippines Inc. (DGTL) for 100,000 shares at P1.34 per share and Globe Telecom Inc. (GLO) for 100 shares at P980.00 per share. She has one song for her orders. “DGTL has a stable price [and] the price of GLO is increasing; both have lots of room for growth.” Her portfolio is negative at the end of the trading week.
Integrator
On the last day of trading for the week Thursday the “Integrator” came out with an order. It was to buy 25,000 shares Benpress Holdings Corp. (BPC) at P2.05. This was invalidated because BPC opened at P2.12 (also its low), made a high of P2.24 and closed at P2.22. Trader28 was silent all week long.
Bottom line spin
The market last Thursday also gave a strong indication that it was still hitting the “buy” button and that stocks had resumed their upward trend with the upside objective to breakout from the 2,627 level of the main Philippine Stock Exchange Index (PSEi). By the way, starting last June 12, the Market Rider now comes out twice a week--every Tuesday and Friday.
(You may reach the Market Rider at marketrider@inquirer.com.ph or directly at densomera@yahoo.com)
