The better part of valor
11:30 am Wednesday Sept. 14, 2010 Philippine stock exchange Index 3961.15
From time to time, even if we have a strong market, we cannot avoid some profit taking. In some cases, we see broad-based profit taking across all sectors; in other occasions, corrections are selective and investors rotate to other sectors.
The move I am observing is profit taking setting into the power and financial sectors while strength is looming in Telcos ad Mining.
I took profits on PNB, DMC and AP. These are positions that i have held for a long time. I sold all my AP and PNB while I sold only half of my DMC. The price action of AP shows some reluctance from buyers to push it forward and with good reason. The stock has gone up seven times in 18 months and profit taking has never been more compelling.
As to PNB, I think the story of the merger has already run its course. PNB may move up in the long run, but short-term, I think all the juice has been squeezed.
On DMC, I am selling only half because while its power story may be taking a rest, its mining (SCC) and housing businesses will still be on a roll. Property businesses will likely continue to perform given the very compelling margins particularly in high rise dwellings in urban areas and those within easy access to business center. That is why I also like VLL and SLI – laggards stocks that have very good land banks and have recently gone into vertical development
56 Comments »