May.16- PetroEnergy Resources Corp. (PERC) 1Q 2014

PetroEnergy Resources Corp. (Q1 2014)

273.8 M -Out.shares
1.56 B -MarCap 

1USD:43.5PHP

275 million pesos -Capital stock
543 million pesos -Retained earnings

481 million pesos -Cash and cash equivalent

4.38 billion pesos -Total Asset

2.86 billion pesos -Total Liabilities

1.99 billion pesos -Equity attributable to parent company

818 million pesos -Current Asset

225 million pesos -Current liabilities 

Revenue:

240 million pesos –Q1 2014
127 million pesos –Q1 2013

% change: 189%

Net Income:

152 million pesos –Q1 2014
24.7 million pesos –Q1 2013
% change: 615%

closing price 16-05-2014: 5.71 pesos
ANNUALIZED EPS: 2.22
PE: 2.57               

BV per share: 7.27 pesos

Price to book value: 0.78x

Note: market price is below Book Value(BV)

Other notes:

Return on Equity: 7.6%
Return on Assets: 3.5 %
Net income margin: 63%

Current ratio: 1.53
Debt-to-equity: 1.43

Expensive Multiple as per Benjamin Graham is 22.5 (PE x P/BV)

BV=7.27

P=5.71

P/BV= 0.78

PE= 2.22

BGM= 1.73 

Happy Investing!

Screen prints from F.S. 

BUY an Asset to BUY a liability

Our Village has organized a Basketball tournament and the opening games will start on March 15. The players are grouped into different regions of the Philippines, and I am on the Eastern Visayas team. 

Seldom only that I get the chance to play in the tournament due to my work schedule so I am buying myself a new pair of shoes. I have few other good shoes that I can spare for the games but this time I prefer to buy any of the new release of Nike hyperdunk. Doing so is tantamount to buying a liability and this is not so me, hehe

Liability- any purchase that does not give back any gain nor return of my capital.

Buy asset to buy a liability is the way of the wise. Putting it the other way around, "buy liability to buy asset" is never heard of and it cannot be done.

My principle in buying a liability

Before to buy a liability, buy first an Asset. An asset that can appreciate in price and use its gain to purchase a liability. Here, I share to you my story so I can well explain what I mean about this method. I hope you consider it educational. 

There are many kinds of asset that may help you give an opportunity to make a gain. In my case I have it more convenient and efficient in purchasing shares of a company through the stock market and selling these shares at a higher price. You may also buy any real estate and other stuffs that you can sell later on and hopefully selling it with a gain. However there could be a liquidity issue in this kind of assets especially real estate. I'm talking about the quickest way you can exchange the asset back into cash so you can buy your liability the day after. 

And there is this quickest way of cashing out while invested and it is through investing on a "Bank deposit".  This is the simplest form of investing since you still get some gain which is at most 1% of your fund. Sad but true, bank deposits cause you more losses than gains in the long run due to inflation and other factors that decreases the purchasing power of a currency :P

The basic thing to consider is the purchase of any asset that when you are ready to sell you can execute the sale transaction the fastest way possible and in a shortest time frame to achieve your target. 

In investing, the exit strategy is more important than the entry.  


The Liability 

Basketball Nike shoes.
Price range 6,000-8,000 php


The Asset

Feb. 25 
Buy: 1.50 pesos per share
50,000 shares x 1.50 = 75,000 Capital
Sold:1.85 avg. (23.3%)
Gain:17,500php

a screen print on that gain:

If it takes a long time to achieve the amount, then think that liability does not just come to you that fast. Therefore be glad. You see I just don't buy a liability. I plan it by choosing which Asset to buy.

Utilized the money created in the air to buy liability, not with your capital. In this way investing becomes more exciting when you know, at some point, you will get what you want.
The excitement of gaining and then having free money to buy your liability is one of the best fulfillment you can experience.    

*the sample stock I have shown above is not a recommend to buy. I have no more ATNB as of this writing. This I can freely show since I do not own it any longer.

Now, I am again doing the same on certain stocks in order to fund my Doodads!


Happy Investing!



P.S. May.10 (update on the Basketball league)

I was not able to join my team in the league. Huli na nang dumating dito sa Pinas! My team did not even make it to the semis. 

Instead of buying a new pair of shoes, the profit I took from the stock will be set aside for depositing on a CCA fund account. A fund that gives out 18% dividend per annum- and this is so me :)

May 05- SHNG chart and analysis

Stock: SHNG
Date:05 May


Open-3.25
Low-3.18
High- 3.37
Close-3.37
Change: 4.33%

Technicals:
-noticeably price breaks pass the 200SMA trend
-psyc resistance 3.40,3.60,3.80
-rising MACD histogram
-STS 72.55

Actions:
start to water the plant

Trailing stops:
N/A

Other info:
Recent Company disclosure is SHNG buys out stake of ALPHA in Shangri-la Hotel for 1.7B

You may want to check the 2013 Financials:

SHNG 2013