Sunday, February 24, 2013

How to Spot the Best Stock that Grows 40 % or Higher

I was a little surprise when I saw that one of my long held stocks SMDC the condo developer arm of the SM group of companies went up to 45% higher than my original price. Although it's not one of those recommended by Citiseconline several weeks ago , I still persists  on my fundamental  analysis based on current valuations of this stock. I bought it at P6 / share around December and hasn't move until recently up to P 9.12. I remember how the famous investor  Mr.Warren Buffet analyze stocks to buy  base on a valuation of 5 yrs consecutive profitability (as seen on Citiseconline Valuation Table) and  buy them when others are afraid.   I also observed how SMDC  has  overrun any other developers in the speed and quality  of their projects execution because we live near where it all happens the "SMDC Light" in the middle of Mandaluyong Central Business District. To cut the story short , just by being observant of what's happening around you and having the fundamental and technical knowledge, one would be able to spot the best stock that grows 40% or higher . Here is how I did the technical analysis of SMDC ...

SMDC_Up_45 %

As soon as I see that the 10 day moving average crosses above the 20 day and above the 100 day MA then the Uptrend started and will continue until  a greater downward force as dictated by market maker or the greater masses pulls it down . The peak may also be determined by MACD 2nd indicator forming a downward arc and or crossing the zero line  with corresponding downward position of OBV (On balance Volume)

As always this is not an advice to buy now- Invest only with extra money and don't put all your eggs in one basket - Keep investing and winning !

Kind rgds,

by Jun dela Cruz













Thursday, February 21, 2013

Why RCBC is a Good Buy.

 RCBC posted P 1.53 Billion in Net Income for the 1st Quarter of 2012, P 506 Million or 49.47% higher than the P 1.02 Billion registered during the same period last year .  Annualized Return on Average Equity remained strong at 15.64%. Total Operating Income increased by 28.53% to P 5.61 Billion as Net Interest Income grew by 6.11% or P 156 Million to P 2.7 Billion.


Fundamentals are strong and the basic criteria for a cheap stock called the Price to earnings ratio (P/E) is only
34  compared to an average of  54 to other banking institutions.


Technicals are also bullish as the 8 days moving average cross above the 32 days EMA.  Volume, OBV  and MACD are all pointing up signifying an upward trend.


9May2012_RCBC
Since February I recommend  a buy signal for RCBC at P 30 / share.





Congratulations PSE for the new record :All time High 650000

For four consecutive sessions the Philippine Stock Exchange has breach an all time high of  6500 , a new record for the Philippines proving the strength of our economy and the investors confidence as a whole.
All the newspapers from around the globe is stating the bullishness of the stock market as the year 2013 started, indeed its a prosperous New Year to all.

For those who have bought the right stock earlier a toast is welcome .  Two of my favorites are Metro Pacific Investment  (MPI) of the Manny Pangilinan group and  Henry Sy's  SMDC /SMPH.

SMDC_20Feb2013


With the news about the merger of SMDC with SMPH into one property conglomerate , SMDC stocks soared to as high as 50 % from its previous price of  P 6.00 /share before closing at P 8.85 today. I would like to congratulate all my fellow investors who took this wild ride up gaining one of my best trades so far .