Christmas Sale at PSE

It's 16 days before the end of 2010 and so I have started balancing my assets and portfolio. I have realized that I have surplus cash in my trading account (thanks to the bull run last Oct) and so I'm planning to pull it out and put it in my Bond Funds by mid January next year. I normally check stock price every end of the day and when I check last night, I found that there are some stocks which can be a potential investment and so I decided to postpone my exercise schedule today to observe the market and buy if opportunity comes....it did and a lot....and so I made my own version of Christmas shopping...

SMPH

SMPH is one of my favorite stocks in PSE since it has a long history of growing profits and it has the business franchise value or durable competitive advantage that Warren Buffet loves. In my valuation last year, SMPH's intrinsic value for 2010 is 12-13 and with sustainable growth rate of at least 9% for the next 10 years base on the current payout ratio and 5-year average ROE.So while many other Filipinos will shop for the holidays, I bought SMPH stocks at Php10.80 today and plan to sell it once the new mall in Cebu started its operations....

AP

I wanted to buy this stock ever since but for some reason my attention is always caught by FPH (which is my biggest bet in my portfolio....I will make a post about this soon). It has a good ROE and a big player in the rapid growing sector in the Philippines...the Power and Energy Sector. The profit margin is also attractive and whether we like it or not we need to buy their electricity. Some people might think that AP has reached its maximum value but based on my analysis...its a yes and no....yes if you consider only the current capacity...but if you can estimate the expansion and put it in the valuation it still has long way to go. I'm expecting a value of  48-55 for this stocks....So, as a Christmas present for myself, I bought it at Php32.5...

EDC

I started buying this stock since 3.8++. Then sold some it its last run at Php6.25-6.53 (but I only sold half of my holdings). Same reason with AP, but with additional advantage, this Power company focus on renewable energy...the energy of the future. For this reason that it has the advantage of securing additional finances for expansion and tax perks (I bet you don't know these...).  If you review the call option made by FGEN (see my post: http://pinoysmart.blogspot.com/2010/12/history-this-is-important-reference-for.html), the exercise price is Php 5.67 for Apr2010-Apr2011, Php 6.19 for Apr2011-Apr2012 and 6.76 for Apr2012-Apr2013.  However, with my valuation assuming a 15% growth for the next 10 years, I'm expecting to sell it at minimum Php8.5 between 2012 and 2013. 

...and there's a lot more like FPH, SPC, LPZ, AMC and etc at discounted price. Some people who are shortsighted thinks that the current market is already Overbought but if you check the value of each companies, you can find the best buys at PSE....

Note that I'm not a day trader and I buy more than sell because I plan to invest in a long term. 

Disclaimer: Above-mentioned is only my personal opinion and base on valuation at my own assumptions.