August 27, 2012 – Casper is the Friendly Ghost and other market wraps

Good afternoon,

I got a lot of heartwarming emails in my facelesstrader inbox (which I wasn’t able to read partly due to forgetfulness and lots of work last 3 weeks.) mainly from OFWs who toil hard outside the country, and simply want to attain financial freedom for their family and themselves.  If my blog can be helpful, then why not?  To me, I’m just a messenger of information I find valuable.  If it can help others, then I’ll be glad to do so.  (Note that I don’t guarantee profits.  I merely try to be an envoy of useful and good public information.)  I don’t advertise on my website.  I don’t seek readers to open accounts under the company I work with (though if you would open a Philequity mutual fund or Wealth Securities online or traditional serviced account, of course, thank you for the trust.)

Let me try to make a useful wrap up , despite all my delays on what has basically happened in the Philippine markets, in the context of the global markets.

Highlights from Philequity Corner:

(Please visit http://www.philequity.net for a full archive of all Philequity corner’s posts dating back as far as 2004.  If you want wisdom, you’ve got it archived in this website. )

1.) August 27, 2012 – Whatever It Takes

In this post, there’s a subtitle called “Risk on”.  I wanted to explain to readers that when people say “the risk trade is definitely back on” — that basically means, that people will buy the bad assets- the walking zombies, the citigroups, the bank of americas, the high beta names etc.  Notice that the Philippines is not perceived as a bad asset, but a safe-haven amongst global investors.  That’s why the Philippines suffered from foreign outflows last few weeks.    We, the local stock market participants have been buying the stocks that the foreigners have been selling. (I have a chart on the Net foreign buying/net foreign selling but its in the office, so I’m sorry if I can’t upload the chart.)  Read the article for more details.

2.) August 20, 2012 – The Friendly Ghost

I was thinking of using a picture of Casper, Wendy, Spooky and the trio (Stretch, Fatso and Stinkie).  Remember when we were all younger and we used to read Harvey comics back in the days?  Okay… I guess I’m only talking to the 90s kids who loved reading Archie, Casper, Hotstuff.  Well basically, this post is a bullish post in explaining that although for some surreal coincidence that there exists a negative bias during the Ghost month as well as the stock market returns, Philequity argues that there’s also a ton of positive bias supporting December’s Santa Claus rally which suggests that instead of getting spooked away from these August and September months, we should see them as windows of buying opportunities.  Trick or Treat Guys and Gals and Ghouls 🙂

3.) July 23, 2012- An Avalanche of Overnight Secondary Placements

Just last two months, Philequity corner wrote in Philstar that investors cannot be complacent as other companies can follow suit and make secondary placements similar to the likes of Ayala Land, Ayala Corp and Puregold.  Lo and behold, SM Investments Corporation does make that prediction come to life.  Last Friday, the company raised P6.37 Bil pesos by selling 9.1 Mil shares at 700 each.

Read the full SM Investments Disclosure here: http://sminvestments.com/smic/?p=259&type=2&sec=25&aid=13195

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I’m proud to say, fellow Filipinos, that Philippines is touted as one of the most visible growth countries not merely by our local banks but other foreign banks.

1.) DBS (Singapore) has written that many Filipinos are seen staying in the Philippines as the economy grows.

http://business.inquirer.net/78810/filipinos-seen-staying-in-philippines-as-economy-grows

2.) Morgan Stanley’s Ruchir Sharma, the head strategist of emerging markets coined us a breakout nation and can be heard everywhere from CNBC, Bloomberg touting to global investors on what sets Philippines apart from other nations.

http://business.inquirer.net/66999/making-a-breakout-nation-can-be-aquinos-historic-legacy

3.) Goldman Sachs have listed the Philippines in its N-11 list (Next 11)

http://www.goldmansachs.com/gsam/advisors/products/growth_markets/n11/index.html

4.) Citigroup has highlighted the Philippines in a wealth report to its clients on the emerging class of Filipinos who can be a buyer of secondary homes. http://www.rappler.com/business/10928-ph-to-post-high-growth-until-2050

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Buy the Leaders , not the Laggards (Use the Pullbacks as a Safer Entry) 

It is notable to highlight that last couple of weeks, Philippines, along with Indonesia, Singapore. Malaysia and Thailand (the countries with the most visible growth) have had a bout of profit taking.  The explanation has already been written by Mr. Valentino Sy’s article in Philequity.  The risk on trade is definitely working.  However, this also presents a lot of opportunities for the local market participants, to buy the strongest countries and the strongest stocks in that region, and benefit from both investment led growth (PPP projects in the Philippines) as well as robust domestic consumption.

Have a great day, and I hope that this post has led you to do your own further research in making more informed decisions for you and your family 🙂

– Faceless Trader

P.S.

I think an extra set of eyes and another’s experience will help me and others more, so send links and articles that you think can be helpful.  Share them via my facebook page or via this commentary box below.