First Metro Asset Management Inc

Peaks and troughs, by Gus Cosio

11:45  Wednesday  26 October 2011

I will be out all of Thursday to attend the Philippine Investment Summit at the Makati Shangrila.  This is an event that will be attended by around 70 investment professionals from foreign investment firms.  There will also be delegates from the large listed companies and total attendance should be over a hundred people.  The roster of speakers are high powered with tycoons Manny Pangilinan and Monchu Aboitiz leading the private sector.  NEDA Director General Dondon Paderanga and Secretaries Cesar Purisima and Mar Roxas will speak for the public sector.  Hopefully, the summit will encourage foreign investors to bring more long term investments to the Philippines.

In Philippine stocks today, we saw some profit taking ahead of what is happening in Europe.  I thought that today was a buying opportnity for stocks like DMC, ICT, EDC, AGI, SCC and other favorite large cap stocks.  Those that bought TEL are pretty lucky because just as the market was closing, PLDT and Digitel disclosed the approval by NTC of their merger.  I am pretty sure that TEL will surge above 2400 Thursday morning.

Mining was a bit mixed with PX and AT easing a bit while NIKL, NI and ORE moved north.  In the past few days, NI has been very strong.  The stock is definitely worth a second look although I would do due diligence research to say the least.  As a minimum effort, you should scour the PSE disclosures of the company including all its quarterly filings with the PSE.  Value is still being built for NI as production is not yet that large.  One thing is for sure though – there is a rich mineral resource that they have mining rights to and they are seriously developing, producing and shipping nickel ore to buyers in China.

A good strategy would be to do accumulation of stocks that have been mentioned in this blog because I think all the bad news have been priced into the market already.  The rest of Asia has grown Weary of the European debt crisis and fund managers here are starting to ignore Greece already.  Why not?  Stocks are reasonably cheap already and the Asian economic environment is reasonably stable.

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First Metro Asset Management Inc