FLI: Ready to fly?

FLI is a stock worth looking at. The chart below shows that FLI is currently resting near its channel resistance which if broken may push FLI to go up fast.

Will FLI break past its resistance or breakdown and head back down? In my opinion, FLI may break it. It's MACD and RSI are suggesting that FLI has a good potential of going back up. RSI is far from overbought which, should buying will start, indicate that there is a very huge room for growth.

FLI is fundamentally rich as well. A week or two ago, Filinvest reported different projects worth P5.2 billion in different major cities. With that being said, we can expect FLI to have a series of developments and projects in the years to come.

Stock Pick: EDC

EDC is a stock worth looking at for this week or probably next as well. EDC's chart below suggests that it is resting on its support/resistance at 6. Should EDC break past such resistance this week, it may have another trek back up to 7.

The chart below is EDC's price action in 4 months time. It's price is currently at either its support or resistance indicated by lines 1 and 2. Line 1 is the resistance and line 2 is the support. Which of which is true? Only future price action will tell.

However, EDC's current RSI suggests that selling is stronger than buying. Should this hold true, Fibonacci suggests that the next possible entry points are at 23.6% Fib which is at around 5.93 or at 38.2% Fib which is at 5.8. If both Fibonacci supports fail to hold, next entry would ideally be at 50% Fib which is at around 5.7.

Despite EDC's current RSI, it may still get back up considering that Dow is strengthening (temporarily). Line 2 should be monitored as it is EDC's support. EDC has gained some strength and should be a stock worth looking at.

On the fundamental side, EDC's interim EPS is way much higher than its projected year end EPS and its P/E ratio is quite low at 40 in comparison to other stocks in its sector.

Rebirth of Real Estate

The properties sector, or real estate to be more specific, is a sector that is worth looking at on 2012. Properties are popping up like mushrooms in almost everywhere which means significant profits for companies in the real estate business.

BHI has been spectacular during 2011 going up by roughly 900% in just three months before going back down giving a year to date (as of this moment) of some 400% increase since it surged and retraced. From as high as 0.45, BHI went back down to 0.3 and even down to its current 0.2-0.22 levels after the news broke out that it is going to be suspended for three months prompting fear and panic.

At its current levels (0.2-0.22), BHI is somewhat cheap and once the renovations in Boracay is done, expect BHI to wake up once again.

Two other stocks that are worth looking (or probably even more worth looking) are ALI and FLI

ALI reported an increase of 30% of its net income in the third quarter. Ayala Land, the property arm of the oldest conglomerate in the Philippines, eyes to meet its 20,000-unit target by yearend. ALI's 9-month income was marked at P5.932B, a 33% increase from its P4.445B record of the same period last year.

Mid-level brand condominiums Avida is expected to continue ALI's rise throughout the year and expects to sustain its growth in 2012.

FLI on the other hand will start its P5.2B worth of projects late this year or 4th quarter of 2011. Filinvest cited projects on locations such as Ortigas, Sta. Mesa, Pasay City, Filinvest Corporate City, Cebu City, and Davao City as future developments.

FLI also increased its 9-month profit by 15% from P1.45B last year to P1.66B this year.

Fundamentally, FLI has a low P/E ratio at 13.9024, quite ideal to buy and its interim EPS exceeded its projected EPS. FLI has a projected yearend EPS of 0.08 while its interim EPS as of Nov. 11, 2011 is already at 0.082.

Correction or Recession?

For months, Greece and probably the whole of Europe has been struggling financially over debt. Probably an unpopular decision that made lots of people furious, Greek PM George Papandreou called out a referendum for Greece's latest bailout package. Is this something good or not? We never know but probably what is certain is that the market may continue to move sideways or probably down if Greece and Europe can't show any signs of development.

As far as PHISIX is concerned, some stocks have shown resiliency. Because of the uncertainty in Greece, I think that the mining and oil sector will still hold strong. Anything related to oil (such as power generation and energy) may have some momentum as well.

Since nobody can predict the market, stocks may appear cheap now but still may continue to go lower. Keep in mind that during a market recovery, blue chips move so fast (just like DMC and JGS after 2008) preceded by penny stocks.

Two scenarios: [1] Market moving sideways, or [2] Market going down. So what are we going to do in each scenario?

Scenario 1: We have noticed Dow has been moving inside a channel. It drops for two or three days and goes back up for almost the same number of days. We can take advantage of such behavior by anticipating when will it go up and down.

Scenario 2: Because of the turmoil in Greece, it might be wise to stay away from the market for a while. This is a very risky time for both traders and investors. For investors who are looking for the best value for their money, wait a little longer and get in when the market shows some legitimate strength. For value investors, stocks are cheap right now and whether or not they continue to go down, the upside is huge.

Rainbow After the Rain

The crisis that has hit Europe, Greece in particular, so far has caused both reasonable and exaggerated fear. Reasonable in a sense that the markets are bound to go down in the next few weeks or even months not until the said crisis is resolved and exaggerated in a sense that some traders/investors are making it look worse than it seem. Either way, major markets are going down and not even the good economic state of the United States can spare it.

Patience is indeed a virtue and on an investors' point of view, the rewards that may follow the recession may not just be great but spectacular. Let's see how did some blue chip companies do after the 2008 financial crisis.

DMC - For as low as P2 per share in December 2008, DMC went up to as high as P48 in May 2011 or some 2400% increase in 2.5 years. DMC was around its previous high of P14 before it went down to lower the P2 levels.

JGS - JGS was around P2 per share in December 2008 and went up to as high as P28 in May 2011 or 1400% increase in 2.5 years. JGS was at a previous high of around P15 before it went down to P2.

DMC and JGS are just some of the stocks that have worked wonders when the market recovered. What does this say? Blue chips are bound to get cheap with the upcoming recession (if Europe can't solve the Greece puzzle). Some stocks that are have great potential are EDC, MEG, mining sector stocks such as PX, NI, ORE, AGP, DIZ, LC, and MA, the financial sector stocks, and probably SMC, and CEB.

However, while waiting for the storm to calm down, penny stocks are getting some attention. 2011 was filled with mixed emotions in the market but these penny stocks has just been plain spectacular

BHI - From around 0.065 in January 2011 to as high as 0.51 mid September, BHI has already went up to as high as 685% in just 9 months before it went down after the news broke out that it is going to be suspended for 3 months. At around 0.2, BHI is somewhat cheap and it will go back up in just a matter of time.

MA - From 0.022 in January to as high as 0.077 at late August, MA has gone up to as high as 250% in just a matter of 9 months. Thanks to the strong mining sector that has pushed this one up along with LC. MA/B has basically the same growth as MA.

LC - A leap from 0.4 to 1.8, LC has gone up by 350% in just a matter of roughly 9 months. A strong gold plus the Goldfields deal pushed LC up along with LC/B and pulled MA and MA/B along with it.

ZHI - Kinda late as it started its run just on July but it went up by more or less 500% in just a matter of weeks. After the retracement, ZHI has started to show some life once again by going up from 0.6 to nearly 1, roughly 66% in two or three weeks.

What are the key points here?

1.) With a very uncertain market, traders/investors are banking on "cheap" stocks such as penny stocks. Putting aside P/E ratios, debt-to-equity ratios, and other fundamental indicators, by cheap we mean a huge upside potential. Penny stocks can give a large number of shares which in return, may result to bigger earnings (or losses) per tick. Penny stocks come to life when the market is bad and while waiting for the market to recover and the blue chips to come back to life, rest on penny stocks. One stock that may follow suit is WPI.

2.) As soon as the market recovers, shift to blue chip companies. Blues move faster in a very good economy because they are the barometers of the economy. Though penny stocks may still continue to do good, blue chips move faster. Just refer to DMC and JGS's performance after 2008.

Stock Analysis 10/28

The positive sentiment keeps on coming. Dow surged by almost 340 points because of the European debt. The push was caused by the deal crafted by European leaders to slash Greece's debt load and to prevent the crisis from engulfing other larger economies such as Italy with the aim of preventing another financial collapse like the one that happened in 2008 after the sinking of Lehman Brothers.

What's in store for us today? PHISIX may significantly surge. We may see several stocks that may gap up. So here's some options.

1.) Sell on the initial rally and buy back during the retracement

2.) Just hold on to your positions as this may continue next week

3.) Sell on the rally and stay liquid

My take would be a combination of 1 and 2. Sell on the initial rally, buy back on the retracement, and hold the position for next week. There are some developments on the European debt crisis which, in my opinion, will continue next week. There is some serious positive sentiment over the weekend and the momentum of most stocks are so strong.

Stocks to look out for:

ZHI - ZHI closed at its high yesterday and may easily breach P1 today. ZHI's price action might be prompted by its ASM on Nov. 16.

Sleeper stocks - If we noticed yesterday, sleeper stocks such as ZHI and BHI went up. ZHI continued to do so until the market closed but BHI's momentum waned. However, despite the weak momentum, BHI showed some signs. After ZHI, BHI may follow as well as other stocks such as WPI and LIHC. Just keep an eye on this stocks.

GEO - GEO is starting to get back up slowly but surely. It may finally break away from the 0.56 levels and break past 0.6 today.

Blue chips - Some blues that gained some attention are DMC, ALI, and MEG. These stocks traded with high volume and with Dow's high surge, these stocks are expected to rise

TEL  and DGTL - For traders, DGTL is a more viable option because it is way cheaper than TEL. TEL on the other hand, a PSE heavyweight, can determine and influence the movement of our index and economy. Both TEL and DGTL are good for short term plays.

NI - More investments are coming to NI. Expect NI to do so good today and next week.

*Gold went down by more than 11 points and it has shown some weakness. Maybe its good to start get ridding of mining stocks because, other than gold, other metals are going down as well.

However, despite the very positive sentiment, the possibility of PHISIX taking a dip is quite high. There is a long weekend coming. Traders may clear their positions out.

Stock Analysis 10/27

Dow Jones surged by more than 100 points after the reports that China will provide some aid for Europe's financial turmoil. NASDAQ, S&P 500, and gold all finished green as well signifying some strength. What should this do to PHISIX today? This may push PHISIX, especially blue chips, up but may fail to sustain momentum because of the long weekend ahead. Long weekends normally prompt selling because of the anticipation that something bad may happen to the market. However, this could go in two ways.

1.) The market may do good during the weekend, or
2.) The market may not do good

If there will be some negative sentiment during the weekend, stocks are bound to sink next week but if there will be some positive sentiment, stocks are going to go up. Those who are brave enough are going to benefit the most.

So what should we do? Take greed and fear away from the picture and assess your risk tolerance. If you can afford to put your money in some stocks when the market is closed and take the risk of having negative sentiments during the weekend, pick stocks that are trading with high volume or some blue chips. The rewards are great if there is some positive sentiment. If you're a little conservative, stay liquid.

Stocks to look at:

Some stocks went up significantly yesterday but among that stood out is NI. For the second straight day, NI has went up significantly and may be profit taking bound. Instead of NI, pick AGP. NI-ORE-AGP moves together and if one starts to move up, the others are going to follow.

PWR and the IP-CLOUD-DFNN tandem are also worth looking. PWR's price action show some buying strength while IP seemed to bounce at the 1.8 levels. It looks like IP have already filled the gap and is bound north again.

For the past 3 days, the volume in PHISIX is been relatively low.

Stock Analysis 10/24

Dow Jones is up by 267 points and gold is up by more than 23 points. Such increases are very bullish and we should expect our very own PHISIX to follow suit as well. Technically, PHISIX's MACD and RSI are indicating some bullishness (really bullish actually) which may continue today.

The mining sector is something to watch out for. Gold's 23 point increase may push mining up. Penny stocks MA and AR are stocks to watch out for. MA's momentum is quite strong and AR's trek towards a cent is still on.

Last week's wonder workers IP-CLOUD-DFNN has been trimmed down to just one recently, IP. The lock up until December 15 can be considered as an indicator that there is something cooking in IP. Consider this. These people who locked their capital in IP are seasoned investors and are most likely to know more about IP and its deals. There is no way that these people are going to lock their money up for either a loss or something unclear, a significant gain is definitely around the corner. What to do with IP? For those who have IP, hold it. If it gets past your average price, sell it. For those without IP, monitor it and buy if it goes down further. We may have today until tomorrow or Wednesday (max) to day trade or momentum trade. There is a long weekend ahead and long weekends prompt selling in anticipation of something bad may happen during the vacation break.

Selectively pick stocks and be defensive in trading.

Stock Analysis 10/21

Dow Jones is up by 37 points. PHISIX may either continue its correction or will resume an uptrend. However, Gaddafi's death may prompt major markets up which, in my opinion, will provide positive sentiment in PHISIX. Most traders will anticipate surges in major markets thus will position themselves early. However, I may be wrong thus monitor the market keenly.

IP is a stock to look at. IP's lock up is due until Dec. 15 and traders and jockeys alike may manipulate its price action before the said date. For mid term holders, IP is a great choice and for short term traders, buying on dips and selling on rallies on this stock can give good gains.

Penny stocks AR, BHI, and MA are also good picks. AR is 0.01 bound, MA's momentum is quite strong, while BHI is cheap as of the moment.

Position yourselves today in anticipation of strong rallies in the next few days.

Stock Analysis 10/20

Dow is down by -72 points, NASDAQ by more than 50 points, S&P 500 by more than 15 points, and gold by almost 3 points. In my opinion, Dow Jones hasn't corrected completely yet and when will Dow convincingly correct, we never know. I'm not more concerned about Dow but more about PHISIX. If we noticed yesterday, PHISIX has shown some weakness yesterday especially on stocks like IP and DFNN. That just might be an indicator that PHISIX will finally correct today.

PHISIX is very bullish for the past 10 days and has shown some resiliency. However, RSI is still far from being overbought which indicates two things, first, PHISIX may continue its trek up, or should there be a correction, it will be short lived again and PHISIX will bounce quickly barring any negative news here and abroad.

Keppel's delisting in PSE may not significantly affect the market today.

Stocks to look at:

IP-CLOUD-DFNN - Many traders are stuck in these stocks. If you have these stocks, hold it to avoid losses. I'm not concerned about IP not unless it breaks past 2.58. Jockeys can easily push this stock up to 7 or even high if they wish to in the next couple of days. DFNN on the other hand is on accumulation mode as per reco. Let's just be patient on this one.

AR - AR has shown some strength yesterday when most stocks weakened. AR closed at high and there is a good possibility of a gap up. Trading plan: For those with AR, sell on the initial surge, monitor it, and buy if it shows some bullishness. For those who doesn't have AR, buy it at opening, sell on initial surge, monitor it, and buy if it shows some bullishness. Just be cautious of bull traps for short term plays. Keep in mind that AR's target price is 0.01

MA - Slowly but surely. There is nothing much about MA aside from the fact that it follows LC and LCB. however, as far as strength is concerned, MA is very strong. It has gone up from less than 0.044 to as high as 0.065 in just a matter of 12 days, some 47% gain for the past 2 weeks. MA is still far from being overbought and I think it will break past 0.07 in a day or two.

IP Update

After the sale of his interest in the national electricity superhighway, tycoon Ricky Razon is now shopping around for a listed shell company for his ventures outside of international port operator ICTSI.

We're talking about Bloomsbury Investments, which is now building a $1.3-billion integrated casino and tourism facility at the Pagcor-initiated Entertainment City in partnership with the gigantic Las Vegas Sands group, which operates the famous Venetian casino complex.

According to the grapevine, Razon is in talks with publicly listed IPVG Corp. or some of its operating units for the backdoor-listing ticket. IPVG, after all, is undertaking a restructuring program to unlock values at the publicly listed shell company level while spinning off its technology-related businesses. This means that Razon can come in and infuse his gaming interests into IPVG.

-Doris Dumlao

Stock Tips 10/19

Dow is up by a little over 180 points as well as NASDAQ, S&P 500, and even gold. Is Dow's correction already done? It's hard to tell but we can expect PHISIX to start up strong today.

1.) Most people are stuck with stocks that went down yesterday and if these stocks will surge early, it is an opportunity to get out.

2.) Another reason why PHISIX will surge is the entry of traders. Because of Dow's +180.05, it will prompt buying. It may be short lived because such traders may exit on initial rallies.

3.) Another possibility is PHISIX surging until close. Ideal game plan for this one is to sell on rallies and buy back during the retracement. However, monitor if the market will indicate some strength near close (like IP yesterday).

A special case is IP and other stocks that surged. These stocks are candidates for gap ups. In IP's case, it may reach 3.87 during the initial surge. IP is a stock that is worth monitoring because if it breaches 3.87, it may surge ahead to 4 or even higher. CLOUD may follow IP but must be sold on initial high.

DFNN may follow IP and CLOUD after these two stocks lose their momentum.

Pick blue chips selectively. I think that we are already on a confirmed bull run. This may continue to do so until December.

Stock Analysis 10/18

Dow Jones is down by nearly 250 points. NASDAQ, S&P 500, and gold are down as well. Basically, almost everything is down. This could be the long awaited correction that we are looking at. Dow has surged significantly over the past few days.

Below is the chart of PHISIX.

PHISIX has just broken past its support which may indicate some bullishness. However, because PHISIX, just like Dow, has been surging for the past few weeks, it may correct along with Dow. Worst case scenario is PHISIX going back down to fill the gap at 3900 levels (encircled). Should we be worried? Personally, there is nothing to be worried about. The market has gained some strength to push it back up. What we may experience is just a mere correction. PHISIX's MACD and RSI are far from overbought and are indicating bullishness.

What should we do? If PHISIX will show some weakness, either we'll hold on to our shares or sell it and buy back lower.

My stock pick for today is MA. MA has exhibited some consistency.

The chart above shows that MA has been rising slowly but consistently. Good thing is that it has broken past its resistance at 0.06 and both MACD and RSI aren't indicating some bearishness. If we may recall, MA wen't up by 10% and its RSI still haven't reached 50 which indicates that there is still a very huge room to grow. What's with MA? There is really nothing so serious about MA right now aside from its chart pattern and price action. MA moves with LC and this is a good stock to pick until March when Goldfields makes its final payment on Lepanto. Why MA over LC? Because MA is way, way cheaper than LC. P2 can buy roughly just a share of LC or LCB but can buy more or less 33 shares of MA or MAB. That's some penny stock earning power there.

Other stocks to look at are PX, the hyped IP-CLOUD-LR-BEL-DFNN tandem, and the future wonder stock LIHC.

NI and ORE

The 2-day massive sell down has brought most stocks down. Corrections are healthy and are always a part of the market movement. The good thing, what goes down always comes back up.

Majority of the stocks are on their bargain prices and after days, and even weeks, of bullishness, most of these stocks have retraced and are soon bound to go back up.

ORE and NI have shown great potential to rise. On the first chart below, ORE is currently resting on its channel support at 5. How strong is the support? ORE's low for the day was 5 signifying that such support is strong.

Hyped to make it to 10, ORE is poised to give nearly 100% return. Fundamentally, the ASM is scheduled on September 15 and prices are expected to rise before the said date.

Below is the chart of NI. NI bounced at 50% Fibonacci at 3.67.

Fundamentally, NI is being prompted by the anticipation of a "big company" coming in. Because NI bought a part of ORE, both NI and ORE might go hand in hand together.

Both NI and ORE are poised to make it to 10 but the question is who makes it first. As far as the channel and Fibonacci are concerned, ORE is a sell at the 7 or even 8 levels while NI may breach 4 once again in a very short period of time.

EDC: Soon to Rise Again?

EDC's chart suggest that it may once again regain some bullish momentum. In the first chart (below), EDC's price is currently resting at 23.6% Fibonacci in more than a 2 year span. Though 23.6% Fib isn't considered as a major support compared to 38.2%, 50%, and 61.8%, in some cases, price action bounce at 23.6% Fib. Should this support hold, EDC may head back to its previous high at a little over than P7.

The second chart below shows that EDC's 2-year 23.6% Fib is currently at its 1-year 50% Fib which is considered as a major support (encircled in yellow). With two Fibonacci ratios hitting the same price, this further solidifies EDC's chances of resuming an uptrend.

But some caution should be exercised. EDC's RSI and MACD suggests that it is a little far from being bullish. EDC's RSI is oversold which could mean two different things: [1] Traders/investors have lost interest/confidence in this stock thus selling and getting rid of it (probably for the mean time), or, in the positive note, [2] Should EDC gain momentum, there is a very high upside because of the availability of shares.

Fundamentally, EDC incurred losses amounting to P1.3B upon shutting down its Northern Negros Geothermal Power (NNGP) but made it up by bagging tax breaks from two geothermal power projects worth P3.91B.

Indicators suggest that EDC is bearish as of the moment but it may rebound quickly and be bullish in an instant. Confirmation in the price action is needed to minimize the risk. Brokers currently having heavy loads of EDC from August 17 to August 22 are BDO Securities, Macquarie Securities, Abacus Securities, and Angping and Associates (to name a few).

Megaworld: Mega-rise bound?

Megaworld (MEG) has been a megastock midyear 2010 after it's meteoric rise from less than P1.2 to over P2.8 in just 6 months, talking about some 133% gain in just half a year span. Apparently, MEG has somewhat lost some steam in 2011, range trading between the P2-P2.4 levels before finally breaching P2 and head down to as low as P1.8.

Though MEG has exhibited some bearish characteristics, significant moohlah can still be earned from this stock and in fact, it may once again gain it's bullishness that it once had.

The chart below shows MEG's trading channel for the past 4 months.

What's significant about MEG's chart is its support. It's price bounced thrice (as of the moment) upon hitting its support indicating that support is strong and reliable enough. Should MEG exclusively follow such trend, an entry price of less than P1.8 is ideal, preferably 1.75 or lower. MEG's MACD indicator is also indicating some bullishness. MACD is a trend indicator signifying how strong (either bullish or bearish) a trend is.

Fundamentally, MEG has reported 70% increase in earnings to P15.75B in the first half of 2011 in comparison to the same period last year and it's net income increased by 131% to P5.16B including a P2B non-recurring gain from sale of AGI shares of stock. MEG's strong performance was backed by strong sales of residence projects such as Newport City, McKinley West, and McKinley Hill, as well as strong leasing income from it's BPO and retail portfolio.

With an entry price of P1.75 soon (hopefully) to be hit by September, MEG can rise to as high as 2.15 as far as the channel is concerned. We are looking at a conservative near 25% gain. Not really bad to swing trade.

Nihao Mineral Resources International (NI): Time To Shine Once Again?

Nihao Mineral Resources International (NI) is one of the most loved and hated stocks last year. After hitting more than P8 late in 2009, NI has gone downhill leaving many traders trapped and forced many others to cut their losses.

However, NI is showing some signs of life and opportunities to win some love back. The chart below is NI's 6-year uptrend support wherein it suggests that its price is currently hovering above such support. There is also a potential inverted head and shoulder formation coming and should such pattern come into a reality, NI is bound for some significant rebound. A target price of P4 is ideal for the inverted head and shoulder.

This second chart shows NI's price action for the past 3 months. NI has found a resistance at P2.50 and is out to challenge it once again.

This last chart shows that NI has been gaining momentum as it has risen for the past 3 days and its RSI (encircled in green) is showing that there is some buying pressure on NI.

NI's momentum is not yet significant but is worth looking at. Personally, I think that it is a good buying opportunity for NI.

Personal Disclosure: Bought some NI @ P2.27

PX Poised To Give Its High Another Run

The Manny Pangilinan led Philex Mining (PX) may hit another high soon. The charts below suggest that PX is setting itself up for another bullish run and possibly break its previous high set at the 27 levels.

The first chart below suggests that PX is just a few notches below its 10-month resistance to date.

The second chart however suggests that it is once again going to challenge such resistance. It has just bounced from its June-July support and may have got some new life.

PX finished strong today closing at 25.65 from 25.50 and hovering around the 25.30-25.40 mark for the most part of the day before going up. Ideally, if the support and resistance levels will hold true, PX will rise from 25.65 to a little less than 28 or probably even breach that mark. Setting a target price at 28 (maybe just a conservative amount), PX could rise by 10%-11% in just a matter of days or maybe weeks, not really quite bad.

Aside from the support and resistance levels, PX's RSI suggests that it is far from overbought thus many buyers will flock this stock in the next few days prompting this one to get so bullish. On the second chart, it's MACD (encircled in green) is starting to reverse which signifies that it will once again head back up. With both RSI and MACD considered, there is a good chance that PX will break such resistance (27.80 to 28 levels). If such resistance is broken, PX is going to uncharted waters where history suggests is a territory where stocks phenomenally go high. Setting a target price of around P35 or a gain of more than 20% is still realistic.

PX is fundamentally rich as well. Philex's subsidiary Silangan Mindanao Mining Co. just bagged tax breaks in its P49B project in Surigao del Norte. The said project can generate 2,592 jobs upon its operation by 2017 that covers 2,880 hectares of land and estimated to contain 393 million metric tons of ore which will have an estimated mine life of 36 years.

Possible Superstars in the Properties Sector

The PSE Properties Sector has been moving sideways between the 1400 and 1600 levels for the past 10 months. Now that such sector is nearing 1600 once again, there is a good chance that such resistance will be broken. In order to do that, stocks in the properties sector must do well, just like how the mining and oil sector is doing in line with the continuous rise in the oil price.

Here are two technically rich stocks that might propel the properties sector to break the 1600 mark and possible build some momentum and rise significantly.

Ayala Land Inc. (ALI)

The chart below shows that ALI has just broken out its 10 month resistance. With its RSI suggesting that it is still far from being overbought and the fundamentals that the properties sector has got recently, it won't be surprising to see ALI go up.

If ALI's price action moves up, it may encounter resistances at 17, 17.50, and around 18.20. With its current price at 16.58, ALI presents some conservative yet possibly less risky gains.

Belle Corporation (BEL)

Whether BEL behaves extraordinarily or not, its chart still suggests a huge upside. For the past 5 1/2 months, BEL has been moving sideways inside the P4-P6 channel. With its current price at P4.70, it may ideally have some P1.30 upside or 21.67% gain potential as far as the channel is concerned. The chart below suggests that BEL has a huge gap to fill from P4.70 to P6.

BEL has been dormant lately moving sideways just between the 4.68 to 4.75 channel for the past month. However, with the huge potential and promise that the properties sector is showing, BEL may wake up real soon. Its RSI suggests that it is way too far from overbought and in fact nearing oversold thus the bulls may just push this stock up soon. BEL however might not be good for short term play but as far as potential is concerned, this is a good stock.

ALI and BEL are just a few of the many stocks that show good potential in the properties sector. With the market still focused on the mining and oil industry and with mixed emotions because of the "ghost month", it may take some time for these two to move. The properties sector is already starting to build some momentum with the fundamentals that the Philippine market is getting so this sector may have next wonder worker especially now that the mining and oil sector is getting too overbought.

Ayala Land Inc. (ALI): Breakout Bound

The chart below shows that Ayala Land Inc. (ALI) is at its 3 month resistance at 16.48. With the properties sector winning some significant market sentiment lately as evident in the price action of stocks such as FLI and VLL, ALI is bound to breakout soon.

So how confident ALI could be? ALI has been consistently rising for more than a week and yet its RSI suggests that it is not yet oversold. With the properties sector bound to breakout and ALI owning the biggest chunk on the said sector, it might push the said sector up. How ALI will do will significantly affect the properties sector.

ALI also bagged a P3.5 billion sale and lease of 7.7 hectares of state property at Negros topping rival SM Prime. The said sale is prompted to provide more jobs, improve the tourism in the province, and Negrenses will enjoy a better kind of life.

Personal Disclosure: Sold PWR for a loss due to the crappy internet connection and bought ALI at 16.42. I bought PWR at 3.05 last Thursday and should have sold it at 3.30 at Friday but failed to do so because of the lag on the broker's system. I ended up selling it at 2.98 and 2.95. Looking forward to buy more ALI if the resistance is broken.

Manila Mining (MA) to challenge 10 month resistance

I've been a fan of Manila Mining (MA) for the past week. MA just got out from its triangle and went up from 0.051 to as high as 0.063 (23.52%) in just a week. However, the chart below tells that MA is right at its 10-month resistance.

Should MA maintain its momentum and break such resistance, 0.1 would just be around the corner. With the momentum that the mining and oil sector has gained over the past months, there is a good possibility that MA will get past such resistance and continue to go north. On the downside, MA's RSI shows that it is already over the oversold level.

Fundamentally, the market sentiment towards the mining and oil sector remains very high and the price of gold continues to increase thus making MA still one of the better picks in the market today.

Personal Disclosure: Sold MA for 17.19% gain after 5 days and bought PWR for another short term play. Should MA bounce back after the correction and break such resistance, I'll get back into the MA wagon.

Manila Mining (MA): Breakout Bound?

The long wait for Manila Mining's (MA) run could finally be over. MA went up by 0.0050 points or 9.62% to close at P0.057 and reach a new high. MA has already broken out from its triangle formed in the past two months and has breached its uptrend resistance as shown in the chart below.

Now that MA is already in an uncharted territory, anything is possible. LC and PWR were phenomenal after making new highs with LC roughly doubled in just two months while PWR nearing 600% gain in just a week! With no resistances to stop MA, it could follow LC and PWR's footsteps and could be the next wonder worker in the days or weeks to come.

Fundamentally, gold continues to do very well internationally which puts the ball back into the mining sector. Gold went up by 2.90 points in the global market despite of the heavy selling that sent the stocks down to a new low for July. Dow Jones Index (DJI), S&P 500, and Nasdaq all went down while gold and oil remained positive.

The positive sentiment towards the oil and mining sector could push MA (and other stocks in the sector) up. A little caution must be exercised though as MA's RSI is indicating that it is already a little overbought and correction or selling might just be around the corner.

PSE Index: Breakout or Breakdown?

For two and a half months, the Philippine Stock Exchange Index or PSEi has been moving sideways. It hit an all time high of more than 4,450 last July 6 but went down from then on. The chart below shows that PSEi is currently resting at its past resistance. Hopefully, such resistance will turn into a support so PSEi could bounce and head back up again.

Aside from turning the resistance into a possible support, PSEi is also resting on 38.2% Fibonacci in reference to its last correction. The Relative Strength Index (RSI) is also showing some good signs as it is not overbought. However, the MACD is showing some bearish signs.

A little caution must be practiced because, despite PSEi's good technical position, the fundamentals aren't looking great. The debt crisis that the European markets are experiencing are having an impact on the global markets. The Dow Jones Index manifested such crisis by dropping 151.44 points or -1.20%. Nasdaq also dropped 57.44 points or -2.0%, while oil continues to tumble down.

Gold might push PSEi up aside from its good technical position. Gold increased by more than 6 points which might have triggered the 11% increase in LC. If gold continues to do such wonder, the mining and oil sector will remain as a safe bet for both traders and investors. The mining and oil sector is also on an uptrend.

If PSEi's technical position won't hold, it may sink to as low as 4200, its long term uptrend support, a deep dive from its current value at 4375. PSE's chart is showing some bearish divergence so there might be a good chance for it to drop.

War of Telcos: GLO vs TEL-DGTL

The PLDT (TEL)-Digitel (DGTL) merger created buzz in the stock market and in the consumer world drawing in mixed emotions and reactions. Many felt threatened now that PLDT owns more than half of the unlimited call and text pioneer in the Philippines. But is it really so? Here's my insights about the merger.

The recent TEL-DGTL merger was likened to the BDO-Equitable PCI Bank merger in 2006. When BDO bought PCI Equitable Bank in 2006, they released a statement that Equitable PCI Bank would remain and operate as a separate entity but later on became Banco de Oro Unibank and Equitable PCI Banks were slowly turned into BDO branches.

Manny Pangilinan said that Sun Cellular would retain its existing features yet many people are pessimistic and think that the unlimited call and text will be gone soon.

I don't think that the unlimited call and text features of Sun Cellular will be phased out in the merger because such feature is the lifeline of Sun Cellular and the same feature will further boost PLDT's subscriber population. Though in a sense that a huge part of the competition has been killed, Globe still owns a significant part of the market which I believe is strong enough to compete with TEL and DGTL. PLDT has to keep its competitiveness up against Globe and the unlimited call and text feature is an edge.

What's in it for Globe? Globe (GLO) gained market sentiment after the merger. Two days after the merger, TEL's stocks decreased (probably because of profit taking) while DGTL's continued to sink while GLO's still went up.

What prompted the market sentiment for GLO? In my opinion, GLO is the only company that could neutralize the monopoly of PLDT as of the moment. Globe has approximately 25 million subscribers, quite significant in comparison to PLDT's 41 million and Digitel's 16 million. Though the merger made PLDT own the lion's share of the pie at 57 million, the market sentiment is leaning towards Globe for now and if they can capitalize on the panic that the merger has created, they could give PLDT a run for their money.

Fundamentally, I am staying away from telco stocks right now. First, I find TEL and GLO expensive. Expensive in a sense that for an amount of 2400 or 900 I can buy more shares from different stocks at a cheaper price and for an equal potential. As soon as the telco fever is over, I'm confident that other stocks will follow. Second, other than the merger, telco companies doesn't have much fundamentals. There hasn't been any technological advancements which makes me think that the telco sector is stagnating as of the moment.

PSEi Finally Breaks 4000: The Good, The Bad, and The Ugly

The long wait is finally over. The Philippine Stock Exchange Index (PHISIX) finally broke the 4000 mark after the bearish run to start the year and a very long consolidation state. Experts, experienced traders and investors, and analysts predicted that PHISIX will resume an uptrend this March but unfortunately, events in Egypt, Libya, and Japan made it hard for PHISIX to move forward. So the forecasts still made it in time, it's March 30 and PHISIX gained 116.51 points to finish at 4023.74.

PLDT's (TEL) acquisition of 51.55% of Digitel (DGTL) shares prompted the push beyond 4000. After the news of the acquisition was confirmed, TEL rose by 320 points to finish at 2356 while (surprisingly), rival Globe Telecom (GLO) gained 96 points to finish at 842. The telco fever has sent the PHISIX skyrocketing.

The Good

PHISIX might have finally built enough momentum for another bull run. Some experts say that PHISIX could break its previous high at around 4400 and even go as high as 4600 or 4700 before 2011 ends. It's something good to look forward to, at least we're being optimistic about the market.

Because of the momentum, other stocks will most likely go up after the telco fever subsides. TEL might go even higher while GLO might go lower. I'm staying away from these two stocks because I find these two a bit expensive. I can buy more stocks for 2400 and 845 with equal potential as TEL and GLO. More shares for equal potential, the better. Look out for SMC, EDC, AC, AP, JFC, SCC, and probably even JGS (just to name a few).

And lastly, now that the PHISIX is starting to go up, expect other investments to go up as well. To those who are investing in mutual funds, this is the entry that you've been looking for: cheap NAVPS and more shares bought. Other than mutual funds, this is also a great opportunity to start investing or adding more in UITFs, bonds, and other equities.

The Bad

The chart below shows that PHISIX is forming a symmetrical triangle.

Though symmetrical triangles are neutral in nature, it also signifies that the market is undecided where to go next. The price action might go either way (up or down) and it is best to wait for confirmation before coming up with a decision.

The Ugly

This one has nothing to do with the price action but more on the consumer side. Now that PLDT owns a majority stake of the unlimited call and text pioneer in the Philippines, we might expect higher rates sooner or later. Though PLDT said that don't intend to cut Sun Cellular's services, I remain skeptical in the long run. The merger has not only killed the competition but made PLDT the majority share holder of DGTL further expanding its telecom empire. On a business sense, it was a win-win situation for both Pangilinan and Gokongwei as Pangilinan now owns more than half of Digitel while Gokongwei gets a part of PLDT. With lesser competition (and Globe not a fan of unlimited calls and texts), expect subscribers to carry heavier rates soon.

Summing it up, I'm very much optimistic about PHISIX. Rather than following the price action of TEL and GLO, it is much better to accumulate shares on stocks that are taking short term dips. These stocks will fuel PHISIX's continual growth and they are way cheaper than TEL and GLO.

Fibonacci Analysis: The Long Overdue Bull Run

Apparently, the much awaited uptrend is already long overdue. Bad news comes one after another which significantly affects PHISIX. Nevertheless, the index has shown signs of life as it remained in the consolidation stage despite the negative turn of events. Quite an achievement so to speak.

I ran a Fibonacci analysis on some stocks (including PHISIX) and found some interesting set ups. The chart below shows that PHISIX is just hovering above 23.6% of Fibonacci which is at 3800. This is applicable to those who are investing in mutual funds and UITFs since these financial entities are strongly affected by the stock market. As soon as PHISIX hits 3800 and bounces back up, it's a good entry point.

The charts below show some good stocks positions for several companies.

PCOR: Many are scared of PCOR because of the dip that it took for the last two months. The chart below shows that PCOR went up as it hit the 50% mark. 50% in Fib is quite strong (in my opinion). It is a little premature to take PCOR but this is definitely worth the look.

JGS: JGS hit the 23.6% mark at 21.5 and went back up. Confirmation is needed as usual to minimize the risk. The chart also shows that 21.5 is a resistance that might turn into a support if JGS would bounce back up. Other than Fibonacci, JGS is also resting on its uptrend support.

JFC: JFC is nearing to hit the 23.6% resistance at 85. If JFC will break it, it will indicate some strong bullish momentum. On a short term perspective, JFC is consolidating. It's undecided as to where to go so again, waiting for a confirmation would be wise before coming up with a decision.

EDC: EDC hit 23.6% at P6. Considering that this has some bullish momentum, this would most likely bounce back up. EDC got some good reviews for the year so I think that at P6, it is a good buy.

AC: Just like JFC, AC is up to challenge the 23.6% resistance at 360. AC was hovering around the 355-360 mark recently and should it get past 360, it will signal some strong buying.

Fibonacci Retracements only suggest where the price would possibly go next but doesn't exactly tell where it would head. It still needs confirmation of price action, other indicators, and fundamentals to further boost its reliability. Nevertheless, I remain optimistic on these stocks for 2011 and the bulls are just waiting at the corner.

The Rainbow After The Rain

After some selling pressure for more than a month, the Philippine Stock Exchange Index (PHISIX or PSEi) is now into the consolidation stage giving signs of a possible uptrend real soon. Some stocks have already broke loose from their short term (in the 1 month downtrend) resistance, some going into consolidation as well while some turned such resistance into supports. However, there are some that continued to go down.

Since the valuations went down for the past weeks, this is a very good time to buy as the much anticipated uptrend is just around the corner. PHISIX is flirting with it's 3900 resistance and as soon as it gains some serious bullish momentum and break such resistance, expect a good number of stocks and PHISIX as well to soar high.

The list entails a lot of Fibonacci retracements and Elliott Wave Theory wave 5 potentials. Elliott Wave Theory's wave 5 is an uptrend or in other words, the value of a particular stock continuing to go up. Fibonacci on the other hand notes some precalculated support/resistance levels that are found to hold true (not all the time but most of the time). If a price hits a Fibonacci support/resistance, it is most likely to reverse.

I have kept a handful of companies in my watch list and picked a few with some really good potential to invest in for at least this year. Most of the MACDs and RSI of such companies are positive indicating some good points of entry. Here's my list:

AC - For the past weeks, AC dropped from around 403 to just a little over 320. For the month of March, AC gained buying pressure as it rose to almost 355. In a two-year reference, AC is hovering above it's two year support and might possibly head into wave 5 of Elliott Wave Theory. My favorite part is seeing it bounce at 38.2% of Fibonacci since January of 2009.

AP - From mid-October of 2008 until this day, AP is on a very strong uptrend gradually yet consistently rising from barely a peso to as high as 35. However, a certain support (from around September of 2009) says that AP's support has turned into a resistance which it is currently challenging right now. Fibonacci suggests that AP might have bounced at 23.6% already (which is a minor support in Fibonacci). As of now, there is no clear indication as to where AP would head next but as soon as it breaks through its resistance at around 32, it's going to be a good buy.

DMC - Technicals are really looking so good for DMC. First, it is resting on a very solid uptrend support and just bounced recently at around 33-34. Second, in a two year span, DMC's position for an Elliott Wave Theory wave 5 is looking really good. For the entry, DMC just broke it's resistance at around 37. It is going to be on its way to challenge its previous high at 40. I'm very optimistic about this one.

JGS - JGS broke its uptrend support and went sideways for the past 2 1/2 months. However, JGS is forming an ascending triangle and should the resistance at around 19.8 will be broken, JGS could go high fast. In a 1 1/2 years span, JGS could enter Elliott Wave Theory wave 5. It needs some confirmation though as MACD is showing selling might just be ahead. JGS has already hit its 38.2% Fibonacci support in a two year reference.

MBT - Another Elliott Wave Theory wave 5 candidate. However, MBT's support for the last 2 years has become its resistance. If it could break its resistance at 72, it will be on its way up, wave 5 might come after all. It is also resting on its 38.2% Fibonacci support. A bounce is more likely.

MEG - From April 2009, MEG is an eye candy for Fibonacci players. MEG is well resting on its 38.2% support, consolidated, and resumed an uptrend. MEG also just bounced from its 2 year uptrend support, quite a solid support that is.

RCB - In nearly two years, RCB just bounced from its 23.6% Fibonacci support. However, on the same span of time, it has just gone below its uptrend support and challenges to break through it. Should RCB break such resistance and turn it back into a support, it will be on its way up.

SCC - Not really much to say about this one. It's uptrend support is very strong. One of my best picks for the year.

SMC - After a strong uptrend, SMC is consolidating as of the moment. Considering all the fundamentals that this company has, SMC remains a strong one for 2011. Confirmation is needed for entry. From the foot of its uptrend late in 2010, SMC is on the 23.6% support of Fibonacci at roughly P160.

SMPH - As of this writing, SMPH just broke out from its downtrend from December of 2010. A support at 10 is somewhat found but as far as Fibonacci is concerned, it might fall down as it hits the 23.6% ceiling. However, in a two year span, SMPH might head into Elliott Wave Theory wave 5. Quite worth looking at.

However, these are all just based on my analysis of the charts and doesn't include fundamentals yet. Always keep in mind that the most important thing in all of these is the price action. Technicals are just signs of the possible behavior and to project the possibility of the direction of the price. If things won't go as expected, bail out. Your decisions will never be right all the time. And lastly, cut hoping (that the price will go up anytime soon). Hoping can lead to false hopes.

BEL: Double Bottom?

The chart below shows that BEL (Belle Corporation) is in a potential double bottom. BEL was one of the many companies that surged late in 2010 as it went up from a little below P2.50 last November of 2010 to as high as P6.30 in mid January of 2011 before starting to sink to less than P5 in February.

However as shown in the chart, BEL gained some momentum at around P4.70ish, went back up to reach near P5.20 before going back down to around P4.70. Since then, BEL gradually picked up some uptrend momentum.

What's interesting in the chart is that the P4.70 level was an uptrend resistance before the double bottom (hopefully) formed. Around January 6, 2011, BEL hit the P4.70 level before bouncing back up for one more run before losing some strength.

Should the double bottom hold, BEL could continue its uptrend run. The good catch? BEL is just hovering around the P5 mark, quite cheap.

I'm optimistic about BEL (I'm always optimistic anyway) but a confirmation would be wise. The double bottom might not hold true. Better be safe than sorry.

MER: Shining Bright

The chart below shows that MER (Meralco) is getting near it's 2-year uptrend support at around the 213-220 range. For the month of February, MER found a strong support at around the 216-220 range but always manages to finish a higher high from 235 to around 240 and its resistance forming a slope signaling an uptrend.

If worse comes to worse and the technicals won't hold true, MER could fall back down to its 5-year uptrend support at around 160.

Fundamentally, MER is a good long term buy. MER has significantly developed under the leadership of Manny Pangilinan in energy production, distribution, and customer care. MER is looking forward for further and massive developments in energy production and distribution in the next 5 years.

To start off, MER is going to put up a pioneering jet fuel/diesel/natural gas plant in Calamba, Laguna set to start on the first quarter of 2012 to produce 120-150 megawatts of power. The company also aims to produce 150 megawatts in 2012, another 150 megawatts in 2013, 600 megawatts in 2014, and 300 megawatts in both 2015 and 2016. MER is also in talks with 2 to 4 groups for possible partnerships in the future and is optimistic that they can offer consumers 5 kilowatt per hour rates.

MER is dancing around the 230 levels right now which for me is a good buy. As soon as their plans will start to come into fruition, MER could go as high as 450 in the next 1 1/2 years based on Fibonacci.

SCC: Going Down?

For a little more than a year, SCC's uptrend support has been so strong. SCC's stock rose from around P40 in January of 2010 to as high as P210 (even higher) in January of 2011. The support was challenged several times yet held firm.

However the chart below signifies that SCC's uptrend support might finally give in. First, the chart shows a rising wedge formation which theoretically signals that a downtrend is coming soon. Second, SCC has breached its seemingly strong uptrend support (encircled in blue).

Though SCC is a strong one, the chart shows the market sentiment. It's price action is starting to consolidate after a gradual yet consistent rise. This could be testing a new support level or heading for a reversal (hopefully, it's the former).

On a personal note, I think that SCC is going to be one of the strong stocks as soon as PHISIX is done with consolidation and resumes an uptrend. The Mining and Oil index is projected to do very good in 2011 and SCC is the leading company in the said index.

SCC's charts shows two things: [1] That it is a very strong stock considering its uptrend support (which was breached possibly because of consolidation of the market), and [2] That it might finally break the support and go for a nosedive. How deep? Nobody knows. SCC could go as low as P160, P140, or P110 based on Fibonacci's 38.2%, 50%, and 61.8%.

A bold prediction on SCC: As soon as this gets through the previous uptrend support which is at around the P210-P215 range, it will gain momentum and rise fast. Right now, I think that it would just be wise to buy on rallies and sell on dips (or sell on resistance).

DMC: Feels Really Good to be Home

This is the right time to do some stocks window shopping. The market is in the consolidation state for almost the whole first quarter and a correction is just waiting around the corner. While looking around for some potentially good stocks, I have stumbled upon DMC.

The chart below shows that DMC is getting near it's two year uptrend support at around 30ish. If the support holds, DMC is bound for another strong uptrend. In approximately 2 years time, DMC rose from barely a peso to as high as P35 or 3500%. Should such slope and momentum continue, DMC could go as high as P50 or even P55.

The chart below shows where DMC stands in the Elliott Wave Theory. Though not as steep as it should be, I think that DMC is already at wave 4 and wave 5 is coming up soon. DMC is also at its 23.6% Fibonacci support level. Though 23.6% doesn't hold strong in comparison to 38.2%, 50%, and 61.8%, it is still a valid support. Considering that DMC is in consolidation and it's short support holding quite well, I think that makes 23.6% valid.

Fundamental wise, DMC has just bagged in 3 contracts for 2011 worth billions. This news actually prompted me to give DMC a look.

I still don't think that DMC's fundamentals is that strong to push it back up. However DMC is really looking good technically and just like most of the stocks that I'm looking at, a few more fundamentals are needed to trigger an uptrend.

Megawide: Developing Properties, Developing Potential

Megawide Construction Corp. is the first company to go public this 2011. Just in case you're not familiar with what this company is, Megawide is one of the biggest and fastest growing engineering and construction firms in the Philippines today. Megawide accounts for 70% of the residential condominium projects of the Sy family's SMDC. Other than SM's projects, Megawide's clients include Belle Corporation, Antel Group, Suyen Corp. (owner of Bench), Prince Jun Development Group, Bellevue Hotel Group, Keppelland Realty, Malate Bayview Development Group, and Goldland Properties and Dynamic Realty.

In it's move to go public, Megawide opened 34% of its company's total stock to the public. In it's opening day, Megawide (listed as MWIDE in PSE) offered P7.84 per share.

Being it's top client, Henry Sy's SM bought 64% of MWIDE's total shares leaving only 36% left for public consumption. SM is having several construction plans for 2011 all over the Philippines which means more projects for Megawide. Never mind Sy and SM owning part of Megawide to cut costs in their projects, Megawide is going to have a very busy year and that's all that matters.

Rumors also has it that SMC plans to buy into MWIDE. SMC's diversification plans fits well with MWIDE as SMC is planning to get into PPP (public private partnerships) this year. Should SMC get into MWIDE sooner or later, that would further boost MWIDE up. SMDC and SMC are strong enough to lift MWIDE up. Aside from SMC, Phinma and Ben Chan of Bench are also rumored to take part of MWIDE.

Lastly, there are 11 PPP reported to start this year for a rough total of $200 billion. Being one of the biggest construction and engineering firms, expect Megawide to get into the negotiation and contract talks in at least one of these 11 projects.

Megawide was established in 1997 by De La Salle University civil engineers Michael Cosiquien and Edgar Saavedra and became a P2 billion company since then and accounts for 20% of high rise residential property construction business. Turnover is expected to double to P4 billion this year.

My personal note is that I think that MWIDE is still undervalued considering that SM bought more than half of it's shares. If SMC would push through in acquiring shares and with their PPP plans, MWIDE could be worth a lot more than its IPO price.

SMC: Fundamentally Sound in 2011

San Miguel Corporation (listed SMC) is one of the companies poised to have a breakout in 2011. SMC broke loose from around P80 in November of 2010 and reached highs at around P185 entering January 2011. The sudden rise was triggered by the reports that SMC is going to invest $40 million in Indophil Resources NL, owner of 37.5% stake in the untapped gold and copper deposit in Asia and part of the $52 billion Tampakan copper-gold project in South Cotabato and the recent acquisition of petroleum heavyweight Petron.

However, SMC has somewhat found a resistance at around P180 as shown in the chart below. For a company that has a lot of fundamentals, what could possibly be holding SMC back from breaking out? SMC's sharp rise might have prompted several firms and individuals to take their profits. The sell out has brought PHISIX down and several investors have taken their money to more stable economies such as the United States and Europe, invested them in stronger currencies or indices.

As far as SMC is concerned, their diversifying plans have further boosted the value of their stocks. Other than the Tampakan project, SMC may also challenge the Pangilinan-led Metro Pacific Investment Corp.'s offer to buy the government's stake in Metro Rail Transit (MRT 3) confirmed by SMC president Ramon S. Ang. SMC is also in talks with Citra Lamtoro Gong Persada and Star Tollway Corp. for a possible organization and establishment of a corporation that will consolidate and undertake toll-road operations and participate in infrastructure projects initiated by the government through it's PPP (public private partnerships) program.

In terms of revenues, SMC eyes a revenue of P1 trillion by 2016. The company made P230 billion in 2010 and projects P530 billion in revenues in 2011. Out of the projected P530 billion revenue, only P214 billion are said to come from the company's traditional food and beverage businesses while the remaining sum from the new businesses, spearheaded by Petron.

Mr. Ang also announced that SMC will have its second public offering once the price of its shares goes up to P250. Ang also said that SMC's current price which is around the P175-P185 range doesn't reflect the company's real assets and worth.

As soon as the market would pick up some buying momentum and break its resistance at P180, expect SMC to go high, fast, and steep. Personally, I think that SMC could go higher than P250 even as high as P300 before 2011 ends provided that its diversification plans would come into fruition.