I watched Love 24/7 this weekend. Love 24/7 is an interview of different people about what they will do if the world ends. The movie then concluded that all that matters is love. That if the world ends, it would always be the time spent for your loved ones that will matter.
I STRONGLY AGREE! If the world ends, we should forget our stocks and just be with our closest and wait for the world to explode. If the world ends, all the assets in the world that has the capacity to generate future cash inflows will not matter because there will be NO FUTURE for all of us.
BUT the world will not end. The world will keep on changing and we need to work to put food on our table tomorrow and in the years to come. Love is important but it is not the only thing that matters. Balance is important.
In investing, most investors see book value (BV) as the company’s intrinsic value. Seeing a company’s value through its BV is viewing the company DEAD. A company that is dead has NO FUTURE. There is no need of using the Price to Earnings Ratio (PER) in valuation since the company will be dead anyway.
A company that is alive grows its book value.
JFC’s BV in 2008 @ 14, in 2011 @ 19
JGS’BV in 2008 @ 11, in 2011 @ 21
To illustrate, if company A has a book value of P1 today and currently selling at P2, is it undervalued or overvalued?
If you view it dead, it is overvalued.
What if I say that Company A is projected to grow its book value to P5 in 5 years? is it over or undervalued at P2?
Probably you’ll think twice whether it is under- or overvalued. You’ll have to consider PER and all other financial tools.
BV is important but it is not the only metric that matters. Balance in considering other financial tools is important.
Courtesy of Zepol, check this out:
In the last paragraph:
“In the event that the debt offers are completed, Globe intends to apply with the rehabilitation court to amend the terms of the rehabilitation plan in the interest of assuring Bayan’s long-term sustainability. Globe expects that the debt will remain subject to the jurisdiction of the rehabilitation court after the completion of the debt offers,” Globe assistant corporate secretary Marisalve Ciocson-Co said earlier.
What could the amendments be?
Below is my thought flow chart for LPZ:
I will be waiting for a PSE disclosure regarding the result of special stockholders meeting on December 11 or December 12. Trading halt probably? ahahaha wishful thinking.