News and Views: AP, CEB, COAT

AP
Price = 31.75,  PE(TTM) = 12.77, ROE (TTM) = 21.66
The National Irrigation Administration gave the go signal to Aboitiz Power AP) to perform the feasibility study for the expansion of  Magat hydroelectric power plant in Isabela.

This is just one of the project being pursued by AP as a response to the fast growing demand of our country. As I have said in my previous post, "Christmas Sale at PSE", AP stock price is still expected to go up in the next 2-3years. My valuation for the said stocks is at Php48-55.

click here for the complete news in BusinessWorld
click here for the complete news in Inquirer


CEB
Price = 106.30,  PE(TTM) = 10.69, ROE (TTM) = no data
JG Summit is buying shares of Cebu Pacific (CEB) after the shares stumble down from its IPO price of Php125 to its current price of Php106.30. The said decline was the market's reaction to the announcement that Air Asia and Tiger Airways will enter the local market which will create a stiff competition with our local carriers.

Even with the said move, I'm still not entice with CEB since I'm well aware of the notorious price competition in the airline industry. I'm a frequent flyer and I always choose the cheapest fare regardless of the airline. As the competitor increases, the fare price decreases and so is the profit margin. With this reason, I consider airline stocks as a risky long term investment. I will leave this stocks to the speculators and gamblers and put my money  in a stocks with more room for growth or with the companies with long history of consistent profit.
click here for the complete news in Inquirer

COAT
Price = 2.42,  PE(TTM) = 6.48, ROE-5 = 12.32
Chemrez Technologies Inc., had expressed interest in acquiring the formula which will solve the crown rot problem in bananas. The said formula was developed by The Philippine Center for Post-Harvest Development and Mechanization (PhilMech).

This is an additional product with high profit potential for COAT should they became successful in mass producing this solution. Banana is one of our leading export product thus created a demand for this solution.
click here for the complete news in BusinessWorld

Legend:

ROE-5- is the 5 year average Return of Equity.

PE (TTM)- is the price to earnings ratio of the stocks based on the earnings in the most recent trailing twelve months(TTM) while price is base on previous days closing price.