Selected Stock Updates: CEB, FGEN, and LPZ

CEB

CEB reached its conservative valuation of 63.

My projection for CEB’s 2012 earnings is at 6.27 which translates to 62.70 should it be valued at 10x PE ratio. PAL is the only comparable publicly listed airline company in PSE so we could not determine on what multiple should CEB trade. Conservative investors may stick to 10x PE ratio while risk takers can gamble for a 15x PE ratio.

FGEN

I like FGEN. This is a stock that I consider to be the most conservative. Conservative because buying this stock is like seeing the future. Earnings are very predictable and immune to economic recession. A stock I can comfortably buy even at 23.50.:)

I failed to add this in my own portfolio though. The reason is that I was in CHIB when FGEN’s major business developments happened. Although FGEN’s earnings are predictable, CHIB’s short term capital gains are much more predictable (at that time).

On hindsight I should have bought FGEN!lol

Read about FGEN here.

LPZ

A stock I bought for speculation.:)

Recent hint on what GLO would do is disclosed here:

http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-8566_GLO.pdf

Part of the news that alarmed me was the portion where the debt is convertible to equity! If that would be true then LPZ valuation will fall at the lowest end of our valuation model (6.51).

Of course, I’ve done my due diligence and the financial obligations that GLO are buying are NOT* convertible to equity!

*I hope I did not miss such an important fact!

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