As one of the shinning stars of 2007, Meg was pushing past Php4 per share. It was last traded before Christmas at Php0.66.
It came quite a long way down. Is it at a bargain? Megaworld seems to think so. In a press release last year, they said that they expect P1.4 billion in sales revenues from its fifth Greenbelt-area project. It is dubbed the Greenbelt Madison. The 31-story building will rise along Salcedo St. in Legaspi Village, Makati City.
A couple of weeks prior to the press release on November 25. They bought back some 2,100,000 shares at 0.5028. After the transaction, 20,510,226,901 shares remain outstanding and 131,420,000 are in the treasury.
Does that mean that they put their money where there mouth is? I don't really think so. 2.1M shares is barely a drop of dew on a rainy morning and thus is not conclusive of their position.
Nonetheless, I personally like this stock. It's a company that appears to have had rode the wave of the sunrise BPO industry rather well. Do I think its at a bargain? Yes. I do.
Saturday, January 3, 2009
what will happen to stocks for 2009
I do not see a coherent consensus of what will happen to the stock market in 2009.
What I have noticed are the following:
1. The world is watching the U.S. and China very closely.
2. The consensus is that there is no consensus
U.S. and China
The U.S. is where this all began. World markets have spent 2008 following the lead of American markets. My own opinion is that the some of the usual suspects will break away. As businesses begin to feel the real effects of the changes in the economic environment of the world and see clearly what it does to their balance sheets and income statements, confidence will be restored to where it should be. The fact is, America isn't the world and if America continues to suffer economically in 2009 not everyone will.
No consensus
There's talk of a rebound in the third quarter while there's also talk of the S&P 500 falling to 500 and staying there at years end.
How will the PSEi look by the end of 2009? I wish I could tell, but what I do know is that the Philippine economy is set to weather the storm in a manner far superior to the developed world. The long and the short is that the outlook for BPO is still strong, remittances are still poised to grow, albeit slower, the Banking Sector is guarded by regulations from the lessons of 1997 and the list does go on.
Thus, even if we can't see where the PSEi will be twelve months from now, we know that the Philippine economy is a logical bet in the long run. Stock prices are low so all we need now is some good intel on which ones are at a bargain and which ones are are cheap in reflection of their true value or lack of it.
What I have noticed are the following:
1. The world is watching the U.S. and China very closely.
2. The consensus is that there is no consensus
U.S. and China
The U.S. is where this all began. World markets have spent 2008 following the lead of American markets. My own opinion is that the some of the usual suspects will break away. As businesses begin to feel the real effects of the changes in the economic environment of the world and see clearly what it does to their balance sheets and income statements, confidence will be restored to where it should be. The fact is, America isn't the world and if America continues to suffer economically in 2009 not everyone will.
No consensus
There's talk of a rebound in the third quarter while there's also talk of the S&P 500 falling to 500 and staying there at years end.
How will the PSEi look by the end of 2009? I wish I could tell, but what I do know is that the Philippine economy is set to weather the storm in a manner far superior to the developed world. The long and the short is that the outlook for BPO is still strong, remittances are still poised to grow, albeit slower, the Banking Sector is guarded by regulations from the lessons of 1997 and the list does go on.
Thus, even if we can't see where the PSEi will be twelve months from now, we know that the Philippine economy is a logical bet in the long run. Stock prices are low so all we need now is some good intel on which ones are at a bargain and which ones are are cheap in reflection of their true value or lack of it.
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