Among 86 companies under the property sector, PSE included 15 in its index. The existence of these numerous companies shows that real estate industry is booming in the country. Whether it is a bubble or not is another question. Among 15 companies, in PSE property index, my broker selected 7. They are ALI, CPG, FLI, MEG, RLC, SMPH and VLL. During my first three months in the stock market, I tried three stocks from my broker's list: ALI, SMPH and MEG. As a result, I gained once in ALI, twice in SMPH, and almost even in MEG. However, after reaching a price almost close to their "fair value," these three stocks started to dance sideways. This makes it difficult for me to enter. And so I did my own research and came up with my own list after using fundamental analysis. I came up with 11 stocks. My only criterion is to do further research on stocks that are consistently paying out dividends. To my surprise, 8 stocks in PSE property index did not appear in my list and 1 in my broker's list, CPG. I think if there is any common opinion I share with both PSE property index and my broker, it is about MEG and FLI. What surprises me is the exclusion of both SHNG and LAND. Among the 11 stocks in my list, I see SHNG as the most attractive. Its P/E ratio is 5.60; P/BV ratio is 0.64, and; its ROI is 16.5%. LAND on the other hand is the next undervalued stock following SHNG with a P/BV ratio of 0.75. I wonder about the reason for exclusion. Perhaps, the experts know something about these 2 companies that the financial statements do not show. That's the limitation of a small time individual investor.
1 comment:
I missed CDC. I think CDC's recent financial standing is the soundest in property sector. The major challenges in this stock is the lack of volume and liquidity.
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