Airline industry, Rice, Stock thoughts: EDC, FGEN

Airline Industry

Good news for Philippine airline companies:

http://www.interaksyon.com/business/56325/good-news–philippines-successfully-addressed-aviation-safety-concerns–icao

They can now fly directly to US and Europe. 🙂

 

Rice

This sounds so good:

http://www.interaksyon.com/business/55809/philippines-aims-to-export-300000-mt-of-rice-by-2016

More investments in the Agricultural sector can drive our country’s GDP higher.

More on interpreting the GDP:

https://fundamentalenthusiast.wordpress.com/2013/02/13/my-common-sense-approach-in-interpreting-the-gdp/

 

EDC

EDC’s series of bad news made EDC’s price plunge.

Suspension of operations of BACMAN:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-1871_EDC.pdf

Landslide:

http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-1908_EDC.pdf

Assuming that BACMAN would not resume operations, the worst EPS that EDC could report is P.49. The market overreacted today, even reaching 6.03 lows.

Bought EDC for my hypothetical conservative portfolio @ 6.72 last Friday

 

FGEN

I completely understand why EDC should go down much but I do not comprehend why FGEN too.

EDC contribution to FGEN is only 20%. My forecasted EPS for FGEN excluding BACMAN’s possible contribution would be P1.97 at 13x PE we can have an intrinsic value of P25.

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