Philippine Stocks I’m Planning to Invest in 2012

by Gily Tenorio on February 13, 2012

in Stocks

One of the best knowledge that I’ve learned and thankful for is stock investing. Perhaps you know that there is a very small percentage of people are now investing in Philippine stocks. There are many reasons behind this scenario why Filipinos are shying away from this good investing opportunities.

I have known the word “stocks” when I was employed in my first company which at the time of my employment I was given a number of stock shares of the company. However, I only know few things and stuffs about stock at that time. By 2009, during my stay in Korea as an OFW, I begun interested in financial education after I almost laid off because of global economic crisis and downsizing of the company.

Knowledge drives away fear. Many people are afraid investing in stocks because they don’t know how stocks works. The fear of losing money is one reason why few people are not going to this kind of investment. However, if you have the proper knowledge and you understand what you are doing, this fear will be put behind and you will realize the big opportunity in investing in stocks.

This year I’m planning to invest continuously in Philippine stocks. Actually, I already bought these stocks beginning of 2010 but I withdrew my investments when we paid the purchase of our house so this year I will start again to buy back these stocks.

The following stocks could be also a good option for you but before buying them, make sure you study deeply their business and financial status. I prefer to buy stocks during “down” time when almost all stock prices are going down, not when it is going up.

1. FPH

First on the list is First Philippine Holdings Corporation (FPH). Currently, I have only 100 shares of FPH. I’m planning to add more when its price goes down to P56 to P57 range. I like FPH because it gives consistent high dividends and it is the biggest player in energy generation in the country.

philippine stocks

I’m not particular at detailed financial data about the company I’m investing. However, I do research about some important facts about the company I’m interested. One information that I’m looking before investing is the nature of the business of the company. As of this time, I prefer to invest in high value company, good management, companies without or small debt and strong cash flow.

2. URC

Universal Robina Corporation (URC) is one of the biggest food manufacturers in the Philippines and in the Southeast Asia. URC is a part of JGC Group of Companies along with other companies like Cebu Pacific Air and Digitel. I like URC because of its strong products not only in the Philippines but also in other Asian countries.

As of this writing, URC stock price is at P52.20, P/E ratio of 23.21, EPS of 2.25, ROI of 10.38 and ROE of 11.35. In addition, it has dividend yield of 2.88%.

3. GMA7

GMA Network Inc. is one of the leading broadcasting networks in the Philippines with a strong customer-based particularly in the NCR and nearby provinces. The main income of GMA7 comes from advertising fee paid by other companies for their advertisements in GMA, particularly the TV and radio ads. It has very small debt and few competitions in their industry.

It consistently pays high dividend to their stockholders which is around 5-10% per year. As of this writing, GMA7’s financial statistics is the following: price of P9.22, P/E of 19.40, EPS of 0.44, ROI of 19.72 and ROE of 14.25.

4. JFC

All Filipino children know Jollibee. Jollibee Food Corporation (JFC) is the number one fast-food chain in the Philippines. JFC is a group of companies composed of several restaurants and fast-food chains such as Choking, Mang Inasal, Greenwich, Red Ribbon and restaurants located in China.

As the leading fast-food chain, Jollibee will continue to dominate the food industry, not only in the Philippines, but in other countries as well in the near future. Its customers are continuously increasing because there are more and more babies are born and soon become a fan of Jollibee.

As of this moment, JFC financial status are: price of P99.50, P/E of 32.87, EPS of 3.01, ROI of 14.08, and ROE of 17.45. In addition, Jollibee has a dividend yield of 1.08.

5. MEG

Megaworld Corporation (MEG) is a property and realty corporation that builds condominiums, buildings, offices and residential houses. It is one of the major construction companies in the Philippines.

Megaworld has three major business divisions: real estate sales of residential and office developments, leasing of office space, primarily to business process outsourcing (BPO) , and retail space, and management of hotel operations.

Currently, MEG has the following financial statistics: price of p1.70, P/E of 5.61, EPS of 0.30, ROI of 9.06 and ROE of 12.83. Furthermore, it has a dividend yield of 1.43%.

This year I will concentrate only on 5 stocks which I think a good strategy by doing cost-averaging. Perhaps after this year, I could add five more stocks on my list.

 

Image Credit: digitalart

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{ 2 comments… read them below or add one }

Chin Chin April 26, 2013 at 02:36

Hi, readers! =)
If you’re interested to invest in the Philippine stock market, you can also check Philippine Stock Exchange’s Market Education website: http://www.pseacademy.com.ph
Thanks!

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Maria Lenkkeri February 14, 2012 at 06:27

2012 is a good opportunity for you to invest.Good luck to you.

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