Selected stock updates: MER, PRC, AGI, GREEN

MER

This morning, news came out that MER’s credit rating was upgraded by S&P to B+ from BB-.

http://www.bworldonline.com/content.php?section=Corporate&title=S&P-gives-Meralco-higher-credit-grade&id=62110

As a result, MER’s price went up by 3.53%.

My take, MER is undervalued even at current prices. Franchise alone is worth P380/share (See comments section of MER stock report). IMHO, a P300 price before year end is very possible.

Short term investment strategy: Buy and hold until the Open Access and Retail Competition (OARC) which is on the second half of 2013.

Long term investment strategy: Hold 5 – 16 years.

 

PRC

Just as I thought there are no more sellers in PRC, ATR came out with so much more shares. Anybody have an idea when ATR will exhaust all his shares?

 

AGI

AGI confirms their intention to spend $1.5 billion for Resorts World.

http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-8586_AGI.pdf

Good news! With the following assumptions:

Return on Assets (ROA) = 5%

Outstanding shares = 10 billion

Forex rate = P 40

The estimated 1.48 increment in its intrinsic value depends on when and how AGI will spend the $1.5 b capex.

 

GREEN

 No news or disclosure except that it’s down 11% from my initial entry.lol

 

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