2011 Stock Picks

I'm starting to invest long term in stocks this year. In previous years, I'm more on it in a short term basis.

My top 20 picks

The following Philippine Stock Exchange (PSE) listed companies would be my target for accumulation for a 3-year period:

1. PLDT (TEL)
2. Globe Telecom (GLO)
3. Ayala Corp. (AC)
4. SM Investment Corp (SM)
5. San Miguel Corp. (SMC)
6. Phil. Stock Exchange (PSE)
7. Metrobank (MBT)
8. China Bank (CHIB)
9. CitisecOnline (COL)
10. MERALCO (MWC)
11. Manila Water Co. (MWC)
12. First Philippines Holdings (FPH)
13. Aboitiz Power (AP)
14. TransAsia (TA)
15. Jollibee Food Corp. (JFC)
16. Engineering Equipment Inc. (EEI)
17. Alliance Global Inc. (AGI)
18. Metro Pacific Inc. (MPI)
19. Philex Mining (PX)
20. Semirara Coal Corp (SCC)

I am not a guru in stock investing. I'm just a common man watching the stock market, reading company's disclosures, financial statement and press releases. My basis for selecting the above stocks is their percieved future values, while the timing of entry would be based on PER and PBV.


Aside from my top 20 picks, I'm also watching the following stocks which would be included in my short term stocks portfolio, depending on movements and rumors:

1. FDC-Filinvest Devt Corp
2. IMI-Integrated Micro
3. OV-PhiloDrill
4. SOC - South of China
5. LC - Lepanto Mining
6. MA - Manila Mining
7. AT - Atlas Mining
8. NIKL - Nickel Asia
9. PAX - Paxys
10. SMDC - SM Devt Corp
11. BELLE - Belle Corp
12. CYBR -Cyber Bay Corp
13. LR - Leisure
14. EDC - Energy Devt Corp

As of this writing, return on my portfolio for the 4 month period is at 6% or 18% year-to-date (YTD). If paper gain/loss will be included, the return would be 12% or 36% YTD.

Vista Land & Lifescapes, Inc. stocks - 70% off

My prediction of upward movement of the stock market as mentioned in my previous post is yet to happen.

Reviewing Philippine Stock Market data for last weeks trading, I discovered that there are a lot of bargain stocks. Among the stocks that caught my attention was Vista Land & Lifescape, Inc. (VLL) which closed today at P1.16, is trading at a discount of almost 70% (BV is P3.76)

I will post a buy to this stocks and will hold it for long-term.

Although, the company:

• Posted net income is lower than the previous period by P500M
• Involvement of its perceived owner Sen. Villar to the Budget brouhaha
• Real property sector growth for the near future is seen to slow down due to the global financial crisis re: the OFW market
  

The bright prospect overshadowed the perceived downside:

• Trading at 70% discount
• Positive Retained Earning - P4.5B
• Posted a net income for the semester - P1.5B
• Diversified real property products, market and location
• Low D/E ratio of 32%
• Paying dividend (latest was April 2008 @ P0.067/share)
• Supports its stock price thru buy-backs