Gus Cosio says so

Ideas on the Philippine Stock Market

Keep on trucking

6:45pm  Tuesday 7 December 2010

By now, everybody reading this blog should be convinced that stock prices do not go up in one straight line.  I observed from many of the comments when the market was falling that many were nervous about their losses.  Today, after 4 trading days of the market rising, we see another down day today.  While I am constructive in the market, I think the market is always vulnerable to profit taking. The market may drift lower again tomorrow, but I hope traders put any decline in perspective – something I always harp on.

What recent the price movements tell us is that we should have conviction in what we buy or sell.  I cannot but always stress that investors should enter the market at prices where they feel comfortable.  By that I mean, a buyer of stock should not think that a stock will go up immediately after he or she takes a position.  The more important consideration should always be the relative value of a stock at its current price.

I, for one, used the downturn in November to evaluate what I should be buying.  When I felt comfortable that the prices were at levels that were of good value, I began to buy what I felt were strong buys.  These were DMC, JGS and VLL.  I have strong conviction on these stocks for a very fundamental reason – their earnings prospects.  One thing to remember is that the stock market is always forward-looking, so prospects are usually more important than historical earnings.  Of course, one should not ignore track record because the value of a company is surely determined by its ability to deliver earnings.

At this juncture, I believe that if one is to buy stocks, he or she should be buying for values to be achieved in the first quarter of 2011 already.  I do not think quick trades will be easy in the coming days as the market thins out.  Nevertheless, I think the next few days should present buying opportunities on stocks with very good prospects as well as some old favorites.  For example, BPI and AC are in very decent price levels.  These are not high growth stocks; but because they lagged the market a lot in the past 3 months, they could do a catch up.  SMPH is another stock which is conservative but could deliver good price appreciation together with SM and SMDC.

Among the power producers, I believe EDC will continue to head higher while AP may be coming to some exhaustion in tandem with AEV.  That does not mean that AP and AEV will start a reversal.  I think that they will not move as fast anymore.  The stock that I think has a lot more kick in it would be SCC because of the prospect of higher oil and coal prices.  A strong SCC translates to good performance of DMC as well.

One should also start looking at some of the laggards like FLI and ALI because they could be good trading prospects over the next few days.  In the property sector, my best recommendation is VLL as a value stock while I would look at SLI due to its follow on offering.  There were rumors earlier that this will not pull though, but recent information tells me otherwise.  SLI raised money from debt to fund some projects, but the offering will go ahead as announced.

I will wrap up by suggesting a review of trading action over the past year.  It was a good year for many who have been persistent followers of the market and good opportunity seekers.  I think persistence is key to finding these opportunities, so keep on trucking.

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December 7, 2010 - Posted by | Financial markets in Asia

95 Comments »

  1. Hi Sir Gus, another great post. Now that MER has gone back to 200, do you think it’s still cheap?

    Comment by A.J. | December 7, 2010 | Reply

    • A.J., I think it’s still cheap at Php200 although I have mine at Php177 and Php187 levels. :)) Remember that used to be Php236.

      Comment by Shan | December 7, 2010 | Reply

      • Shan,
        I suggest that you keep an eye on MER. You can take a small position now and build it up whenever the price goes down. That is assuming you’ll be a long term follower of this stock.

        Comment by Gus Cosio | December 8, 2010

  2. Yes, it has been a good year indeed! I just started trading this year but with so much that has happened, it made me learn a lot about profit taking and cutting losses. But most of all, it taught me how to invest properly; backed up by research and not by guesses. Thanks sir for all your insights! 🙂

    Comment by James | December 7, 2010 | Reply

    • Keep on trucking, James. Remember that you do not have to make money with every trade. Just make sure you own worthwhile stocks and to view your capital employed in the market as principal seeking yield. If the principal makes anywhere upward of 10%, you should be pleased that you made more than other alternative investments.

      Comment by Gus Cosio | December 12, 2010 | Reply

  3. Hi Sir Gus. Am very happy with MER and DMC. If the correction will continue in the next few days and trading will be thin till the year end, I hope to buy more MER, DMC, MPI, EDC, AGI, Ore and NIKL. I hope it will be a merry merry Christmas to all players and followers of your blog. More power!

    Comment by Shan | December 7, 2010 | Reply

  4. “a buyer of stock should not think that a stock will go up immediately after he or she takes a position.” – I agree. Thanks, Gus.

    Comment by haripoter | December 7, 2010 | Reply

  5. one can be immune to daily price changes if they have done their homework on companies they’ve invested in..homework on fundamentals and the price for its fundamentals..buying businesses instead of markets..

    Comment by cliffhanger | December 7, 2010 | Reply

  6. Hi Sir Gus, I’ve been reading your blog and I find it very informative to a newbie like me. Sir Gus, although i’m a newbie, I stick with the blue chips. Unfortunately, my SMPH isn’t doing well. Any insights on this stock? It is the leader in the mall industry. It has a good management. It also has strong balance sheet and has been earning ever since going public. Correct me if i’m wrong but I think this stock is the crown jewel of Henry Sy as URC to John Gokongwei. Love to hear from you regarding this stock. Thanks!

    Comment by jen | December 7, 2010 | Reply

    • Jen,
      SMPH is a stock where you will not lose money in the long run. For me, the best way to earn from this stock is to watch where the price range is and trade the range and keep coming back.

      Comment by Gus Cosio | December 12, 2010 | Reply

  7. What do you think of ore sir?
    I also bought VLL @ 3.02 and i am optimistic of the future value of this stock. I see lots of buying opportunity but i only have a small capital since i am still a student. Quite disappointed that i failed to buy mer while it was @ 181, but its okay at least i learn my lesson.

    Comment by Francis | December 7, 2010 | Reply

    • Hi Francis,

      No worries, you should be happy coz as early as now you started to invest in equities..

      Comment by Perocho | December 7, 2010 | Reply

      • i agree with perocho, francis. you have plenty of time to learn, trade and build wealth. Good luck!

        Comment by pinoyturtle | December 7, 2010

    • Francis,
      On a scale of 1 to 10 where 1 is speculative and 10 is complete certainty, ORE would be around 4. It is not entirely speculative because we know that it is a producing mine and that there is ore on the ground. The big question is whether or not it will be a profitable mine over time. That is still to be proven. However, that it is in the middle of the range makes it the object of a great profitable trade. If there is absolute certainty in their profitability already then this stock will no longer trade at 3.40 or so; it will be trading closer to 10. The fact that it is still near enough to being speculative makes the risk reward payout quite large.

      Comment by Gus Cosio | December 12, 2010 | Reply

  8. Hi Sir Gus,

    Good Day!

    What can you say about NICKEL ASIA?

    Thanks!

    Comment by Forth | December 7, 2010 | Reply

    • This stock could have gone up to 20p if majority of the underwriters were local, but they gave it mostly to foreign entities hence the heavy selling. Who knew they were also tsupiteros.

      Comment by Seth | December 8, 2010 | Reply

    • Forth,
      I think NIKL is worth a hold. As Seth said, this stock should be worth at least 20. It is a matter of time. Furthermore, I will be decidedly long on good mining plays for the coming months due to firmer commodities and metals prices.

      Comment by Gus Cosio | December 8, 2010 | Reply

      • Thanks Sir Gus and Seth! 🙂

        Comment by Forth | December 8, 2010

  9. Hi Sir,

    Do you think NIKL is still a good buy? Its been hovering around the high 15’s to 16 these past few days..

    And since they’re releasing some new stocks wouldn’t this saturate the market and bring the price down?

    Thanks.

    Comment by Julie | December 7, 2010 | Reply

    • Julie,
      I think NIKL is a good buy specially if you are positioning for 2011 already.

      Comment by Gus Cosio | December 8, 2010 | Reply

      • Hi Sir,

        Thank you very much for your opinion.

        Comment by Julie | December 8, 2010

  10. sir gus, any comment on ore, lcb and Meg?
    I bought vll@2.98 and mpi@3.75 and is poised for a merry xmas…. how about ore, lcb and meg?

    Comment by bush | December 7, 2010 | Reply

    • Bush,
      I don’t mind holding ORE at this point. As for LCB, I do not have much enthusiasm for this stock. I would rather hold VLL or even FLI for MEG since MEG is purely a trading stock. You’ll find deeper value in VLL and FLI. You could even consider SLI, if you have the patience.

      Comment by Gus Cosio | December 8, 2010 | Reply

  11. good thing MER went up. so happy to have another green stock in my portfolio aside from PX… hope the others will follow para may pambili ng hamon this coming Noche Buena!

    Comment by RmR | December 8, 2010 | Reply

  12. good day sir gus, may I know your thoughts on meg? compared to vll which is a better buy now? thanks.

    Comment by jovy | December 8, 2010 | Reply

    • Jovy,
      My money is on VLL, hands down.

      Comment by Gus Cosio | December 8, 2010 | Reply

      • the 3 most undervalued property stocks right now are MEG, VLL, and FLI..whats good about VLL is that they have a lot of developments in the mass housing sector..

        Comment by cliffhanger | December 9, 2010

  13. Hi Gus,
    nice call on vll and edc….both up today

    Comment by glacier | December 8, 2010 | Reply

    • u dont really need to monitor it daily..try extending your monitoring to monthly or weekly stages..of course you’d have to be confident in your bets for you to be comfortable doing that..

      Comment by cliffhanger | December 9, 2010 | Reply

  14. Hi Sir Gus,

    What’s your take on companies selling below their net current asset value? A few issues are so neglected they’re selling at significant discounts to their NCAV.

    Comment by Cogitator | December 8, 2010 | Reply

    • Cogitator,
      It is not always the case when a stock is selling below its net asset value that is is cheap. Remember that stock prices are forward looking. Some stocks trade below their NAV because their prospects are declining rather than getting better.

      Comment by Gus Cosio | December 8, 2010 | Reply

  15. Hi Sir Gus,

    Hope your info on SLI will pursue, i still have this stock. Based on previous discussion with stock analysts, this SRO will not pursue as loan has been secured for their 2011 projects. Again i hope your informant is correct,wishful thinking..

    Comment by Blogspot | December 8, 2010 | Reply

    • Blogspot,
      I would prefer that you see the stock – SLI – as a good fundamental buy despite news on any secondary offering. I look at SLI from this perspective and I’m willing to ride with the stock for the time being.

      Comment by Gus Cosio | December 8, 2010 | Reply

  16. green is a sign for bullish…lolz

    Comment by marketbeginner | December 8, 2010 | Reply

  17. Bought Mer,VLL,SCC,JGS.. thanks for this forum..hopefully it all fly soon =)

    Comment by irving | December 8, 2010 | Reply

    • Irving,
      I think that you have a winning portfolio for the next 3 months at least. It even could last longer.

      Comment by Gus Cosio | December 8, 2010 | Reply

      • Thanks sir…
        your comment really helps…
        God Bless!

        Comment by irving | December 8, 2010

  18. Metal Prices reached its peaked already…I think they will start going down next month avoid/Sell MA and LC….

    Comment by Tony | December 8, 2010 | Reply

    • Perhaps, but I think that metal prices may go higher as the U.S. is poised to grow in the next few quarters.

      Comment by Gus Cosio | December 8, 2010 | Reply

  19. Hello,

    I have just started trading and my friends said that I’m lucky because I entered at the start of the bull run. Usually, how long does these runs last? They said it should extend maybe 1-2 years more?

    Thanks

    Comment by Tony | December 8, 2010 | Reply

    • Tony, I’m looking for 2 good years of ups and downs but things will likely end up at the end of two yeas.

      Comment by Gus Cosio | December 8, 2010 | Reply

      • Ok. So I still have quite some time to invest. But what happens after 2 years? From my understanding, the “bear” market would emerge. Would this make the prices fall back to maybe the prices 2-3 years in the past or would things just move very slowly? I was thinking of staying in the market a little bit longer but when it ends, do we just pull everything out and wait for the next bull?

        Thanks

        Comment by Tony | December 8, 2010

  20. Hello sir Gus,

    You mentioned positioning on mining stocks. However, I don’t hear you mentioning AT. Copper price is trending up. Demand for it is swelling. There are a lot of reasons for this stock to be a BUY. 1 very good reason is that starting next year, they can sell copper unhedged. Care to share your view on this sir?

    Comment by Richie lim | December 8, 2010 | Reply

    • Richie,
      We analyzed AT and we see it at 20. It is a good stock to trade, but I already have my favorites.

      Comment by Gus Cosio | December 12, 2010 | Reply

      • Thank you for commenting sir.

        Comment by Richie lim | December 13, 2010

  21. Hi sir. Is it wise to invest 50% in First Metro Save & Learn Equity Fund & 50% in Balanced Fund? Would appreciate your advise on this matter. Thanks, God bless.

    Comment by Pipo S. Onrubia | December 8, 2010 | Reply

    • I think it’s better to put your investment in Equity fund since balanced fund are also invested in stocks. Try to look at the returns on both funds. You’ll see only a little difference.

      Comment by PoGGs | December 9, 2010 | Reply

    • Pipo,
      When you allocate it that way – 50% equity and 50% balanced, you are keeping your volatility down by around 20% compared to having everything in an equity fund. Nothing wrong with that.

      Comment by Gus Cosio | December 12, 2010 | Reply

  22. Dear sir. I will invest 50% in First Metro Save & Learn Equity Fund & 50% in Balanced Fund. Am I making the right move? Thanks, God bless.

    Comment by Crispulo S. Onrubia | December 8, 2010 | Reply

  23. Sir gus Im always with you but i like mining Stocks 6 months ago when PX was @ 10/sh right now I will avoid it….but will buy again maybe by Middle of 2011…I like VLL right now….

    Comment by Tony | December 8, 2010 | Reply

    • Tony,
      I recently sold my PX at 14.98 but I am not abandoning following the stock. If it goes down below 14, I’ll think about taking a new position. They should be earning around Php6.5billion next year at current prices of gold and copper.

      Comment by Gus Cosio | December 12, 2010 | Reply

  24. Hi Sir Gus,

    What are your thoughts on LPZ? Its price has recovered rapidly from a low of 4.42 in Dec 1 to 5.55 today. Is this a good stock to hold long-term?

    Comment by blue7 | December 8, 2010 | Reply

    • Blue7,
      Nothing wrong with LPZ. It will trade with a little more volatility than the index in general. It is a conviction stock so it is really what you think that counts.

      Comment by Gus Cosio | December 12, 2010 | Reply

  25. Hi sir, similar question on no. 2O. What are your thoughts on ORE vs. AT? I bought AT when I saw their earnings were trending up but was dissapointed when the last quarter showed a loss and gladly exited. Thanks.

    Comment by jovy | December 8, 2010 | Reply

    • Jovy, last quarter showed losses for the company bec of mark-to-market loss. I will not get into details on that but next quarter they will have a stronger earnings. Suffice to say, I’m still waiting for sir Gus view on AT.

      Comment by Richie lim | December 9, 2010 | Reply

      • Btw, Ore and AT is a different kind of animal so you cannot compare the two. Ore is purely nickel play while AT is producing copper And nickel. Forecast on Demand for copper is just absolutely stunning! I’m not hyping, it is a fact.

        Comment by Richie lim | December 9, 2010

  26. I’ve been reading ORE’s latest report, and well.. at least they are still at it.They must really believe on that mine.

    > The company expects a significant change in its manpower as the number of employees is anticipated to reach 312 upon commencement of large scale production.

    But.. hmm, so they are still not on the “large scale production” phase?

    Anyway, perhaps I should take a punt.. If MER reaches my target price, I’ll probably flip that for ORE or NIKL later.

    Comment by jasper | December 9, 2010 | Reply

    • The target price for ORE is 10p if you believe the local jockeys supporting this stock. Forward earnings is very profitable. For ORE going up 315% in 2010,this stock is not doing so bad. I have some ORE.:D

      Comment by Seth | December 9, 2010 | Reply

  27. hello I know that Citibank is not listed in the PSE. What are your thoughts on buying C at these levels? How is Citibank doing in the Phil market Thanks

    Comment by gabe rapatan | December 9, 2010 | Reply

  28. Do you consider buying SMC and PCOR?
    They say SMC will sell 1billion shares for as much as 200pesos. If that will be the case, the stock still has lot of potential to increase given that its current price is around 130.
    What do you think sir?

    Comment by Francis | December 9, 2010 | Reply

  29. hi all, based on my elementary assessment of the following stocks, i find FPH, MER, MWC, AC and MPI to have the highest potential for growth next year.

    I am now planning to allocate 40% on MWC, 35% on FPH, 15% on MER, and 10% on SCC.What do you think?

    >newbie here

    Comment by rdthedeveloper | December 9, 2010 | Reply

    • i also have FPH MWC and MPI on my list

      Comment by cliffhanger | December 9, 2010 | Reply

    • are you really sure that for next year MWC, and FPH has the highest potential for growth?

      how come? just curious..

      Comment by jasper | December 9, 2010 | Reply

      • mwc has a low p/e with a high profit margin 30% and return on equity 19%..

        fph p/bv is at 0.60, p/e around 15, return on equity at 14%..

        id say with the net profit margin, mwc has more chance of growth, and one would buy fph basically for its discount on the book value..

        Comment by cliffhanger | December 9, 2010

      • hi jasper, of course im not sure with MWC and maybe nobody is :), just that based on COL analysts’ fundamental analysis, it has high FV and currently traded on lower price.

        Also, i strongly believe with MWC’s potential in longterm. I think its revenue stream is stable, its an Ayala company, and a lot of things are going on in Manila to improve its service efficiency.

        With FPH, while not discussing a lot about values in its fundamentals i think its undervalued/discounted at current price. I’m actually hesitant about this ‘coz of its case with the pipeline may broke out of proportion. But its a holdings company, i guess its already diversified.

        With MER, i want to enter at 200 or less, else I’ll hold my cash for it. 70% of my portfolio is in MER at 178/sh.

        As you may observe, my position are mostly medium to long term 🙂

        Comment by rdthedeveloper | December 9, 2010

    • Those are very conservative allocations. I’d put 20% on SCC and 25% on MER and reduce MWC to 30% and FPH to 25%. I think there is more certainty in MER and SCC than there is in FPH.

      Comment by Gus Cosio | December 12, 2010 | Reply

      • yes sir gus, i decided not to get any FPH last week. I think there is more potential on DMC and SCC.

        I have now AEV(4%), AP(3%), DMC(13%), SCC(20%), MER(26%), MWC(24%) and this is good upto Q1 FY2011 :). Looking forward for a greener 2011!

        Comment by rdthedeveloper | December 13, 2010

  30. sir,
    what can you say about SMCP1? i’m clueless regarding preferred shares. i have it now, can i hold it for a long term?

    Comment by aldrin | December 9, 2010 | Reply

    • preferred basically acts like a bond in that it has a coupon, say 8.5% and the company pays you 8.5% dividends per year.

      The major difference with bonds is that the company is not obliged to pay the dividend. If they don’t pay any dividends you get nothing.

      So it is essential that you buy preferred stocks of companies that has decades of uninterrupted payments. Otherwise, since preferred prices don’t change much – if they cancel the dividends, you are stuck with nothing.

      Comment by jasper | December 9, 2010 | Reply

      • thanks for the info. but this is smc’s first offering of a preferred share so they don’t have a track record of sorts for giving out dividends. my question is can i hold this for a long term or shall i trade it when smc’s offering pushes thru nxt year?my guess is they’ll be jacking up the prices of the smc stocks to make the offerinh more attractive. am i right?

        Comment by aldrin | December 9, 2010

      • hi aldrin,

        I’m sorry I don’t do preferred so I can’t tell you much. But think of it this way, TEL will give you 9% AND it has a chance of going up. Why would I buy something that gives ‘just’ 8% and will mostly be flat? And why don’t you just buy a straight bond too. Those give 8-8.5% the last time BDO contacted me and offered me some.

        Btw: I dunno if the price will go higher and if you can sell preferred shares when you need to. I haven’t a clue about its liquidity.

        But well, do tell later on if you find that it gives good value. I’m willing to keep an open mind about it..

        Comment by jasper | December 9, 2010

    • Hello Aldrin. When did you get your SMCP1.
      Yesterday? I’ve read that this was offered last year at P75 with a guaranteed dividend of 8% per annum.

      I also bought a few board lot yesterday.
      From what I saw, there is a play here related to SMC. A certain broker is gapping up prices at the close, yesterday and today.

      Same scenario is observed with SMB when it was always closed at 24.

      But let’s not be so greedy here, 18% gain at today’s close is already yummy. Let’s sell on strength!

      Comment by Aldrien | December 9, 2010 | Reply

  31. Hi Gus,

    What your take on EEI?
    Planning to get this stocks for long term.
    Thank you.

    Comment by Johann | December 10, 2010 | Reply

    • hi johann, i think eei isgreat long/medium term hold 🙂 the $200 million project alone in saudi it bagged recently will put its forward p/e to be less than 1 at a conservative return of 30%. my prediction isthat it will have a 2nd ipo offering soon enough to fund its future projects that in my estimate will generate at least 4 times its current market capitalization in 3 years time.

      Comment by chris m. | December 10, 2010 | Reply

  32. I bought ore at 3.62 and now that it is down below 3.45, i have to admit i am starting to feel scared of its price movement. Do you still have your ore sir?

    Comment by Francis | December 10, 2010 | Reply

    • I dunno if Gus already disposed all of it, but if you back-read he said he left at 3.7x..

      Comment by jasper | December 10, 2010 | Reply

      • i thought he reinstated his position on ore. I hope Sir Gus still has ore on his portfolio. SO that in a way i can feel confident on my holding.

        Comment by Francis | December 10, 2010

      • Hi Francis, Jasper,
        I sold some ORE at 3.83 and 3.77 but kept some which cost me about 2.89. I am looking to slowly buy back when it stops moving down.

        Comment by Gus Cosio | December 12, 2010

    • thought there are so many positive things that they say about ORE, most of them are just “potential” since the realization of its earnings did not materialize, most of us are still waiting for the shipment to pursue. Already sold out my ORE..

      Comment by Blogspot | December 10, 2010 | Reply

      • dont you think some people are just creating fear among ore holders by selling down so that they can acquire more ore at a lower price?

        Since i believe once the shipment pursues, it is going to be a blast to the stock price! What do you think?

        Comment by Francis | December 10, 2010

      • well, if an owner has too little faith on the stock that rumors will move him to sell, he might be better off not buying it in the first place.

        Comment by jasper | December 11, 2010

      • Well i would rather put my investment on other active stocks rather than being stagnant, i can still go back and buy once shipment was done,look at the trend, & its a fact that it is going down..we’ll see by 2011..

        Comment by Blogspot | December 11, 2010

  33. Sir,

    Are we still in BULL RUN??
    just worried that i jumped in the wrong side of the market.

    availed COL2x but losing money in falling market and interest. any advice on how to maximize the COL2x?

    thanks a lot.

    Comment by irving | December 10, 2010 | Reply

    • irving,

      if you are new to the stock market i understand your worry however if not you must not be in the equity picking business. that question has been raised and answered several times by sir gus and by some follower of this blog since november of this year. try to check those entries and you will find the answer to your question. this is my advice to you when trading try to detached your emotion. this correction is already foretold several weeks ago and the rest of december trading days are good opportunity to position yourself for 2011.

      Comment by richard | December 10, 2010 | Reply

      • thanks a lot =) god bless

        Comment by irving | December 12, 2010

    • whats COL2x?

      Comment by jasper | December 10, 2010 | Reply

      • its a loan program by citisec if their account holders wanted to take advantage of the prices and you don’t have no available balance.

        https://www.citiseconline.com/Final2/B_home_new/FAQS_COLX2.asp

        Comment by rdthedeveloper | December 10, 2010

      • > This credit line facility will be available to you at an interest rate of 1.5% per month or 18% per annum

        Oh wow.. 18%? thats higher than what most funds earn in a year.. in fact you can even do that cash-for-card of BPI, and they will only charge you about 12%..

        I think if its not a total rip-off.. then at the very least its a very bad deal.. plus – one of the things one needs to learn is to avoid using unnecessary leverage..

        18% is totally unnecessary :/

        Comment by jasper | December 11, 2010

      • yes, it can be a bad deal because it will be like spending money we don’t have or own.

        it maybe helpful for fast traders, like what happened to MER where from 175/sh to 200/sh in < 2weeks i think. I think if trader took advantage of COL2X, then sell after, take profit, then the interest will be low.

        Comment by rdthedeveloper | December 11, 2010

    • It would be prudent to only use the COLX2 when adding up to positions that have a confirmed run or breakout. Otherwise, just have it in reserve. Its a powerful tool to maximize your profits but you should know WHEN to use it.

      Comment by Jojo | December 11, 2010 | Reply

  34. Theres an old saying.

    “The bulls earn money, the bears earn money, but the pigs get slaughtered”

    wala lang.. hehe.. :peace:

    Comment by jasper | December 10, 2010 | Reply

  35. hi. May I know what to do with SLI?

    i bot it at 1.87. im just worried since its now at 1.79. will it continue to go down

    Also, is this the bottom of our index, or do we expect profit taking in the next few days?

    Comment by yanyan | December 10, 2010 | Reply

  36. did anyone buy ip converge? they said they are going to be a dividend paying company and that first dividend will be on dec 31. If the stock won’t sink further, then it might be a good dividend-buy..

    plus i read that the current price is at a low 5x pe or so.. so is a value buy too..

    still not finished reading the prospectus though..

    Comment by jasper | December 11, 2010 | Reply

    • Here are some of the things I found out about CLOUD.
      1. I think the margins are too thin. They gross 500M but, the net is only about 35M.
      2. Its not 5x pe. Its selling at about 13-15x pe.
      3. Seems like the owner is selling his shares as fast as he can.
      4. I’m not going to buy ;/

      Comment by jasper | December 13, 2010 | Reply

  37. Gold Falls to 1365 from 1421….

    Comment by Tulip . | December 12, 2010 | Reply


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