Stock thoughts: PAL, PNX, MER, LPZ, FGEN, TA, PRIM

PAL

An example of par reduction that would not result to increase in number of shares:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-0787_PAL.pdf

PAL decrease the amount of authorized capital while maintaining the number of shares:

Current par = P 16B / 20 B shs = P.80

New par = P 4B / 20 B shs = P.20

 

PNX

Many weeks ago, somebody gave me a heads up on this stock regarding their consistency in declaring stock div.

2012 – 50%

2011 – 30%

2010 – 40%

2009 – 40%

2008 – 30%

And now, 30% stock div:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-0788_PNX.pdf

Congrats! 🙂

 

MER

MER attaining its short term valuation of 300.

More here:

https://fundamentalenthusiast.wordpress.com/2012/11/10/manila-electric-company-pse-mer/

 

LPZ

Wohoo! LPZ realized its value of 7.35. Oh yeah!

Sold all at 7.35 (not my own account)

 

FGEN

Finally, somebody is seeing the value of FGEN. 🙂

 

TA

Adjusted short term valuation of TA of 1.60 is reached.

Back-of-the-napkin calculation here:

https://fundamentalenthusiast.wordpress.com/2013/01/02/fiscal-cliff-stock-thoughts-agi-ta/

 

Not-so-back- of-the-napkin calculation here:

https://fundamentalenthusiast.wordpress.com/2012/10/29/investing-in-trans-asia-oil-and-energy-development-corporation/

The funny question is why did I not buy TA for my personal account if I know its real value?

Answer: I fell to anchoring bias. 🙂

A way of thinking influenced by anchoring bias goes like this: “TA has gone up 30%, it should go down and it shall be the best opportunity to buy if it happens.”

I based by decision to a known fact (30% increase) that has no bearing to my decision.

Proper thinking should be: “TA is still undervalued at 1.30, if its short term value is 1.60 then I can still expect 20% return.”

More here:

http://www.investopedia.com/terms/a/anchoring.asp#axzz2JQgGLGr1

My mistake, charge to experience. 🙂

 

Now, why will I not buy TA if I know its long term value is 2.13?

I REALLY find my current holdings undervalued….. too. Lol

 

PRIM

Talking about speculation, PRIM stock price soared ahead of its extension of corporate life:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-0955_PRIM.pdf

The thesis is that the market will speculate as PRIM will extend its corporate life. The majority shareholders may change the purpose of the company from banking to media.

PRIM is majority owned by MVP group so there is a possibility that TV5 will be listed through this stock.

Heard about this since last year but had no liberty to share since the idea did not originate from me. Now, the person who told me about this is taking his profits. Congrats! 🙂

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