Author Archive
Buyback Programs
27 March 2008With the recent downturn of the local stock markets, we have seen many companies come out with disclosures regarding the approval of a stock buyback program by their respective board of directors. Many firms disclosed their stock buyback programs months ago and we have seen some companies that have been actively buying back their shares of stock from the local market.
There are currently 2 types of share buybacks happening in the PSEi:
1.) The company buys back stock from the market and records it as treasury shares.
This is the most common type of buyback. The company's free cash is used to buyback stock to reduce the outstanding number of shares and lists them as treasury shares under the equity subsection. The total outstanding shares of the company will be reduced.
Market Returns
7 January 2008
Fortunes come and Fortunes go as the saying goes. With the recent volatility in the stock markets we have seen many fortunes which were made last year vanish faster than we could have imagined. When hard times fall onto investors, many wish for the good times when the markets seemed like a never ending party with quick cash and seemingly never ending record highs. What however would happen if our markets never corrected? could we actually have never ending partying due to unlimited funds being generated from our stock market trades?
This thinking was analyzed by a Jeremy J. Siegel a Professor of finance in Wharton School at the University of Pennsylvania and was detailed in his book The Future for Investors.
What a Market!
6 January 2008
For the short term traders, there is nothing to be happy about with this type of market especially with the US in a recession. One might wonder as to what to do with the current state of our markets. Well to borrow the advice from our friends here in financemanila, the best advice to take is to sit and just wait. Unless you are good at business valuations and are planning to position for the long long term, this type of market is nothing to cheer about.
ROX
6 September 2007Here is a little background info from the PSE Website:
Roxas Holdings, Inc. (ROX), formerly Central Azucarera Don Pedro, was founded in 1927 and was one of the first sugar mills established in the Philippines. On December 11, 2001, the Securities and Exchange Commission approved the change in the company's primary purpose from sugar manufacturing to that of an investment holding company.
Starting off the analysis of ROX brings us to the balance sheet. In the balance sheet we see the following assets which are of interest to us: (For easy reading, i am imputting here the "Panic Amount" or the immediate estimated liquidation value)
Assets:
AEV
28 August 2007Aboitiz Equity Ventures is the listed holding company of the Aboitiz family. Their interests include food manufacturing, power and electricity production, transport systems as well as banking. The Aboitiz family now has 3 listed companies in the exchange (4 including AEV) wherein AEV has an interest in.
These companies i am mentioned above are Aboitiz Power (AP), Unionbank of the Philippines (UBP), and Aboitiz Transport System (ATS)
With the recent downturn of the market, a lot of people have focused back on the fundamentals and a lot of the people i know are looking for good companies which might be undervalued relative to earnings, assets, or even both.
Investing Basics
21 August 2007We’ve all heard the many debates about long term vs short term, TA vs FA, speculative vs value, etc. I won’t repeat that here because we’ve all heard or read the many articles about this. I however would like to write something about investing basics here due to a message i received early in the trading day. The message went something like this:
xxx: Looks like the market is up today
me: yep
xxx: looks like xyz stock has good buying volume
me: seems like it
xxx: is it a good time to buy now or should i wait a bit more?
Revaluation and Repricing
17 August 2007Back in August 15, Dragon wrote in his DMN the following:
“After all this rain of blood is over, there will be a revaluation and repricing, and nerds will come out with numbers on how the selling has been overdone.”
This was a very funny but true comment and i have that funny feeling that i will probably be one of those nerds who will come out with numbers to show that the selling (when it stops) has been overdone. Due to the recent downturn, people have been wondering where the bottom of this market is and how far can it be from current prices. We have tried to find the bottom using Technical Analysis and charting but for some reason the market has constantly proved us wrong.