Merry Christmas- in Istanbul

Last week I was at Istanbul Grand bazaar to see what I can buy and bring home for souvenir. When I took my first step inside the building I saw stalls with variety of products being sold. Now this is interesting when many items flaunted are first seen...

I came upon a mesmerizing sight of gold. I called up my friends to accompany me inside to inquire on the prices on selected items. I went to ask for the price of gold chains.

At one point in my decision making, I became too lousy and stupid. I know for fact that I am good at pricing items especially when I know the standard price much more for gold. But to my surprise my investor's mentality just dropped off on that particular moment. I submitted to the opinion of the vendor of what he calls 'best price and discounted' he can give. I should have known what he was talking about if I have computed it myself the suggested price of that gold chain. Indeed, good marketing can sometimes blind us and unknowingly dropping our fundamental approach. 

Same what happen in stock investing. Many investors know the fundamental stand of companies but still fall on good marketing of few clever traders ready to sell their shares to gullible buyers..I really thought this time I was one..Anyway, when I reviewed and got my own computation, I saw that I have not bought it with a significant discount, but rather at a reasonable premium price. 

The approach to buying a certain items must be the same as how I evaluate a stock. I've got to have a knowledge of how it should be priced. I must know the real price of a stock before I can say whether the price of a for sale item is cheap or expensive. From there it is so fun to haggle for a best price in my own terms..

Right after the gold purchase, I went on for a vengeance. When a gold plated copper coffee pot caught my attention, I haggled for a lower price and demanded for a free 2 teaspoon while showing a ready Euro on my hand..I also hinted to him that I can bring more customers in his store with just one call from my friends waiting for me outside..with all those things to weigh and magic poke on his greediness, he submitted to my demand. I was quick to hand him my money and get what I think I am more than happy to acquire- The gold plated copper Coffee pot, for my espresso machine at home.

In this case, I have no idea of real price of the coffee pot. But feeling happy and worth the money I paid for it is just so priceless experience.


Merry Christmas and a prosperous New year to all!

Dec.7 SPC Power--JUST WED

SPC Corporation Q3 2012

Out.shares                 1,495,121,903

MarCap                      7.236 Billion pesos

1Q-290.6M                617% up compared to same period in 2011

2Q-479.4M                247% up compared to same period in 2011

3Q-217.0M                26.1% up compared to same period in 2011

News: Unit 2 of KSPC shut down on July 2012 3Q

Cause: breakdown of ILP turbine and Labyrinth

Effect: Equity share of parent company amounted to 21M, a decreased of 78% compared to 95.2M same period.

Action: Item sent to Japan for refurbishment. Completed and received back on Oct.6

Update: Grid synchronization achieved to 100% capacity as of Oct 28, 2012.

Conclusion: Therefore the company is back to normal and profitable condition. More upside to improve earnings for 4Q

Annualised Earning:             1.316 Billion

EPS:                                   0.880

Comparative avg. PE with other companies at 12

Current price:  4.84 pesos

0.880 x 12 = 10.50 pesos

Current price to TP: 117% upside

Dividend History:

YEAR	STOCK	CASH	SPLITS	RIGHTS	EX-DATE	RECORD	PAYABLE
2012	-	0.10	-	-	11-Jun-2012	15-Jun-2012	03-Jul-2012
2010	-	0.25	-	-	10-Jun-2010	16-Jun-2010	30-Jun-2010

Other notes:

Net income 9M 2012: 987.1 million pesos
Net income 9M 2011: 350.7 million pesos
change: 181%

Return on Equity:       28%
Return on Assets:      23%
Net income margin:   56.5%

Current ratio:           4.45
Debt-to-equity:        0.15

Dec.4 stock monitoring for the coming weeks

Investing continues even with the index is at historic highs, now at 5706.

LFM- I may exclude from my monitoring since this will be kept for the purpose of  dividend giver. This will remain in my portfolio or may decide to have this certificated. Of course my plan is subject to change. Should there be any information I deem necessary to monitor then I will disclose in appropriate time.

WEB-technical indicators still shows a hold plan for me. Buy back program on going

PCOR- break 10 and I will sell. hold 10.4 then I will do the same. break 11.0 then I will add...before anything else, watch price action and buyers above 11.00

PNX- it may hold for quite sometime at 9.0 level. prolonged consolidation will cement 9 as strong support. Investors believe that it should visit pass 10.00 level. Testing patience of traders to sell at this critical level before the move to 10.0. Catalyst is nearing.

Three picks look well. While these are not so volatile it is fitting to my situation at the moment when I cannot monitor them minute by minute. I am back at work here in Turkey. Start of work is at 7am and it is 1pm for Philippines. I will only have the afternoon trade session to check my picks- it's not fun.

It's more fun in Philippines!