Assessing PERC

PSEi
4,893.48 4,893.00
-0.48

PERC Petroenergry Resources Corporation is my first ever stock bought since I started trading. Up to this day I still hold  this stock in my portfolio.

This is to remind me that basic knowledge on investing can be the best thing there is when application of complex approach may sometimes lead me to a deadend and I may end up picking other stocks due to "analysisparalysis".

Not being sentimental on this but I respect my early application of stock pickings through fundamental outlook.
All possible aspects as to my knowledge in investing were weighed and everything boils to one particular stock, and that is PERC.

Knowledge of the industry- check ( I work in oil industry)
P/E- 8.53
Book value- 6.5 (current price is fair- 6.4) Price is at par on BV
i.e.  (Total equity $42M/outs.shares)

Do the same and determine BV and dividend yield of (other oil companies)  OV & OPM :

OV- 3X BV (3x expensive), 2% dividend yield
OPM-2X BV (2x expensive), no dividends
Price lower or equal to the BV is better. There is room to move the price up to BV level. Any other catalysts can shoot it more.

PERC Catalysts: Oil price is up, success in geothermal projects, good 4Q earnings, USD getting strong against peso, upcoming decision on galoc 2 expansion, PXP as stockholder...

PERC has not released their 4Q report as per PSE website. Interesting whether they have increase profit for yet another yummy dividends to expect.

Product future- Oil is increasing its value especially due to tension in Iran gulf.
Dividend yield- 3.3% way more better against OV & OPM
PERC is the company where PXP is getting their profits.
see page 4 of this link:

http://www2.pse.com.ph/html/ListedCompanies/pdf/2011/PXP_17Q_Sep2011_1.pdf 
 
Expansion to other business venture- Geothermal projects.
Expansion means growth and diversity in invesment.

This was my first application of my knowledge in choosing a stock. Unlike nowadays, as much as info I get, news I absorbed, and charts I
interpret, nothing really compares to the basic knowledge of stock pickings than what I had learned in my early ways.