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...

San Miguel Corportation....a Big Bull on the run

I’ve been observing San Miguel Corp., lately and I must say that this company is a good buy especially now that its momentum has picked up. The Management moves of selling existing stable business and buying into fast growing stocks makes its ROE seems low and scare away many investors (or should I say traders). But looking in depth at its financial statement, the company has a healthy balance sheet and will surely grow fast in the next 10 years. It has a low to medium leverage withdebt to equity ratio, or DE ratio (a valuation to test the debt level of a company) is 72.74%. Assuming a 20% annual growth for the next 10 years, SMC stock price intrinsic value is at PhP196 by discounted cash flow calculation. I’m expecting a 50% upside for this stocks.