Professional Documents
Culture Documents
December 2014
Volume 5, No. 24
Invest Throughout
Your Lifetime
In the past 40 years, the stock market has grown an average of 12 percent
a year. Isnt that cool? Those 40 years include the worst catastrophes in
human history. The 9/11 bombing. Asian Crisis of 98. And the Financial
Meltdown of 08.
Imagine if youre a 25-year-old. After you joined the TrulyRichClub,
you started investing P5000 a month into the stock market, and it gave
you a conservative return of 12 percent like it has for the last 40 years,
youd have accumulated almost P52 million by the time you reach 65
years old. Mindboggling, right?
At age 55, your investments would still be P16 million.
At age 45, your investment would still be a sizable P4.8
million. (Yes, I know its small compared to P52 million, but P4.8
million is still P4.8 million. Kawabangga.)
My point?
Dont ever stop investing.
Your relationship with the TrulyRichClub is a lifetime relationship. Ill be here for you, guiding you, and your
children, and your grandchildren, on creating your multimillions.
May your dreams come true,
Bo Sanchez
P.S. Im reminding you to supercharge your 2015 by leaps and bounds. How? Join WEALTH SUMMIT 2015. Hurry
before the early bird tickets disappear. Through our biggest learning financial event of the year, I know youll grow
in your rock-solid commitment to build your long-term wealth. To supercharge your 2015, visit www.trulyrichclub.
com/wealthsummit now!
Stocks
Update
Stocks
Update
Page 1 of 8
In the recent issues of our Stocks Update, weve been looking into updates on our SAM Stocks on how they
faired during the 3rd quarter of 2014 or the 1st nine months of this year. Were done with AC, AP, CEB, and EEI.
For this issue, lets take a closer look at LRI and MBT.
LRI
LRI posted an 11.91 percent growth in its 3rd quarter 2014 net sales compared with the same period last year.
Specifically, the company reported P6,336,797,000 for the said quarter as against P5,662,194,000 during the 3rd quarter
of 2013. This is based on its reported unaudited consolidated earnings.
Earnings from its operations also increased by 92 percent from the same
period last year. This is from P945,974,000 to P1,816,326,000. Also,
earnings before tax was P986,482,000 against P911,719,000 a year ago.
This is a 8.2 percent increase.
Furthermore, for the 1st nine months of 2014, the company posted
net sales of P19,096,615,000. This is 6.97 percent higher compared to the same period in 2013 at P17,851,095,000.
Earnings from its operations for the 1st nine months of this year decreased by 2.10 percent from P4,168,462,000 during
the same period last year to P4,080,413,000 this year. Lastly, earnings before tax fell by 2.12 percent at P4,080,413,000
against P4,168,462,000 a year ago.
MBT
Metrobanks profits during the 3rd quarter of the year jumped by 57.4 percent to P4 billion. This added to its net
income for the 1st nine months of 2014 to P13.1 billion, 70.2 percent of COL Researchs full year forecast. Its earnings
disappointed due to lower than expected fee income and profits from its trading business. This was also partly offset by
the booking of significant non-recurring gains. However, MBTs core lending and deposit taking business continued
to be strong with the net interest income for 2014 as of November rising by 23 percent to P34 billion in the 1st nine
months of 2014.
The companys core operations continued to be strong with net interest income increasing by 13 percent to P11.7
billion during the 3rd quarter of this year and by 23 percent in the 1st nine months of 2014 to P34 billion. This was also
pushed by the 21.4 percent growth in its loan portfolio to P697.3 billion as well as the 22.4 percent increase in interest
earning assets to P1.5 trillion. This, on the other hand, was elevated
by the 23.4 percent jump in total deposits to P1.1 trillion and the net
issuance of P21 billion of tier-2 capital notes. However, despite the
quick increase in assets, net interest margin was stead y at 3.35 percent
for this years 1st nine months.
During the 1st nine months of 2014, total non-interest income decreased by 57.1 percent to P19 billion. The 90
percent drop in trading gains to P1.5 billion primarily caused this decline. The company attributes the steeper than
expected decline to weaker trading activity in the secondary bond market. This in turn negatively affected the earnings
of MBT from spreads on bonds sold to clients. Another thing that negatively affected non-interest income was the
slower than expected growth in fee-based revenues. From the beginning of the year up to November, fee-based income
only increased by 3.2 percent to P6.6 billion. Fee income was expected to grow in line with the increase in assets and
deposits because bulks of these fees are transaction based. According to the company, the slower growth in fee-based
Stocks
Update
Stocks
Update
Volume 5, No. 24
December 2014
Page 2 of 8
income was caused by the decline in rates charged on banking services brought about by intense competition.
If you noticed in our last issue, MBTs Target Price was lowered to P106. This was caused by the companys
weaker than expected non-interest income during the first nine months of the year. However, COL Research and TRC
believe that MBT will continue to deliver strong headline numbers for the whole year. Despite the lowering of our
target price for Metrobank, it is still expected to be one of the major beneficiaries of the growth in demand for loans
because of its size, and liquid and healthy balance sheet.
I hope these updates have enlightened you on the current standing of LRI and MBT. For our next issue, on
January 2015, Ill be tackling MEG and SMPH.
I hope you had a good year of investing this 2014. May you have a better one this coming 2015. God bless and
Merry Christmas!
Happy investing in between holidays!
Here are our SAM Tables (as of December 23, 2014 closing)
STOCK
Current Price
Target Price
Action to Take
AC
675.00
709.00
816.00
Continue buying
AP
42.00
39.00
44.90
CEB
84.95
130.00
150.00
Continue buying
EEI
11.00
11.90
13.70
Continue buying
LRI
8.89
13.78
15.85
Continue buying
MBT
82.00
92.00
106.00
Continue buying
MEG
4.75
4.98
5.73
Continue buying
MER
255.80
308.70
355.00
Continue buying
SMPH
16.90
17.60
20.30
Continue buying
STOCK
SYMBOL
DATE
BOUGHT
PRICE
BOUGHT
PRICE
TODAY
YOUR
RETURN
BUY BELOW
PRICE
TARGET
PRICE
EXPECTED
GROWTH
AC
Jul-13
603.50
675.00
11.85%
654.80
753.00
24.77%
Aug-13
598.50
675.00
12.78%
602.40
753.00
25.81%
Sep-13
580.00
675.00
16.38%
602.40
753.00
29.83%
Oct-13
601.50
675.00
12.22%
602.40
753.00
25.19%
Nov-13
569.50
675.00
18.53%
602.40
753.00
32.22%
Dec-13
555.00
675.00
21.62%
602.40
753.00
35.68%
Jan-14
525.00
675.00
28.57%
599.13
689.00
31.24%
Feb-14
538.50
675.00
25.35%
599.13
689.00
27.95%
Mar-14
574.00
675.00
17.60%
599.13
689.00
20.03%
Apr-14
590.00
675.00
14.41%
599.13
689.00
16.78%
Aug-14
704.00
675.00
-4.12%
709.00
816.00
15.91%
Oct-14
688.00
675.00
-1.89%
709.00
816.00
18.60%
Nov-14
690.00
675.00
-2.17%
709.00
816.00
18.26%
Dec-14
689.00
675.00
-2.03%
709.00
816.00
18.43%
TOTAL
12.08%
24.34%
Legend:
n Continue Buying
Stocks
Update
Stocks
Update
Volume 5, No. 24
n Stop Buying
December 2014
Page 3 of 8
STOCK
SYMBOL
DATE
BOUGHT
PRICE
BOUGHT
PRICE
TODAY
YOUR
RETURN
BUY BELOW
PRICE
TARGET
PRICE
EXPECTED
GROWTH
AP
May-14
36.40
42.00
15.38%
38.00
44.30
21.70%
Jun-14
36.60
42.00
14.75%
38.00
44.30
21.04%
Jul-14
36.55
42.00
14.91%
38.00
44.30
21.20%
Aug-14
37.00
42.00
13.51%
39.00
44.90
21.35%
Sep-15
38.95
42.00
7.83%
39.00
44.90
15.28%
TOTAL
16.60%
20.11%
CEB
Nov-14
76.70
84.95
10.76%
78.26
90.00
17.34%
Dec-14
85.00
84.95
-0.06%
130.43
150.00
76.47%
TOTAL
5.35%
46.91%
EEI
Oct-13
9.57
11.00
14.94%
10.40
13.00
35.84%
Nov-13
9.88
11.00
11.34%
10.40
13.00
31.58%
Dec-13
9.70
11.00
13.40%
10.40
13.00
34.02%
Jan-14
10.04
11.00
9.56%
11.04
12.70
26.49%
Feb-14
10.00
11.00
10.00%
11.04
12.70
27.00%
Mar-14
11.00
11.00
0.00%
11.04
12.70
15.45%
Jun-14
10.62
11.00
3.58%
11.04
12.70
19.59%
Jul-14
11.00
11.00
0.00%
11.30
13.00
18.18%
Aug-14
11.24
11.00
-2.14%
11.30
13.00
15.66%
Oct-14
11.10
11.00
-0.90%
11.30
13.00
17.12%
Nov-14
11.18
11.00
-1.61%
11.30
13.00
16.28%
Dec-14
10.70
11.00
2.80%
11.91
13.70
28.04%
TOTAL
5.08%
23.77%
LRI
Jun-13
11.50
8.89
-22.70%
12.68
15.85
37.83%
Jul-13
11.00
8.89
-19.18%
12.68
15.85
44.09%
Aug-13
10.50
8.89
-15.33%
12.68
15.85
50.95%
Sep-13
9.72
8.89
-8.54%
12.68
15.85
63.07%
Oct-13
9.10
8.89
-2.31%
12.68
15.85
74.18%
Nov-13
9.25
8.89
-3.89%
12.68
15.85
71.35%
Dec-13
8.82
8.89
0.79%
12.68
15.85
79.71%
Jan-14
8.71
8.89
2.07%
13.78
15.85
81.97%
Feb-14
9.00
8.89
-1.22%
13.78
15.85
76.11%
Mar-14
8.99
8.89
-1.11%
13.78
15.85
76.31%
Apr-14
9.24
8.89
-3.79%
13.78
15.85
71.54%
May-14
9.97
8.89
-10.83%
13.78
15.85
58.98%
Jun-14
9.59
8.89
-7.30%
13.78
15.85
65.28%
Jul-14
9.95
8.89
-10.65%
13.78
15.85
59.30%
Aug-14
9.85
8.89
-9.75%
13.78
15.85
60.91%
Sep-14
9.87
8.89
-9.93%
13.78
15.85
60.59%
Oct-14
9.49
8.89
-6.32%
13.78
15.85
67.02%
Nov-14
9.50
8.89
-6.42%
13.78
15.85
66.84%
Dec-14
9.40
8.89
-5.43%
13.78
15.85
68.62%
TOTAL
-7.47%
64.98%
Legend:
n Continue Buying
Stocks
Update
Stocks
Update
Volume 5, No. 24
n Stop Buying
December 2014
Page 4 of 8
STOCK
SYMBOL
DATE
BOUGHT
PRICE
BOUGHT
PRICE
TODAY
YOUR
RETURN
BUY BELOW
PRICE
TARGET
PRICE
EXPECTED
GROWTH
MBT
Jun-11
50.06
82.00
63.79%
78.88
93.60
86.96%
Jul-11
55.69
82.00
47.26%
78.88
93.60
68.09%
Aug-11
52.85
82.00
55.16%
78.88
93.60
77.11%
Sep-11
50.40
82.00
62.70%
78.88
93.60
85.71%
Oct-11
48.34
82.00
69.65%
78.88
93.60
93.65%
Nov-11
50.33
82.00
62.92%
78.88
93.60
85.97%
Dec-11
47.60
82.00
72.27%
78.88
93.60
96.64%
Jan-12
49.42
82.00
65.92%
83.07
108.00
118.54%
Feb-12
55.23
82.00
48.47%
83.07
108.00
95.55%
Mar-12
61.60
82.00
33.12%
93.91
108.00
75.32%
Apr-12
60.20
82.00
36.21%
93.91
108.00
79.40%
May-12
62.13
82.00
31.99%
93.91
108.00
73.84%
Jun-12
60.55
82.00
35.43%
93.91
108.00
78.36%
Sep-12
65.38
82.00
25.42%
93.91
108.00
65.19%
Oct-12
65.10
82.00
25.96%
104.35
120.00
84.33%
Nov-12
67.24
82.00
21.96%
104.35
120.00
78.48%
Jan-13
72.38
82.00
13.29%
113.04
130.00
79.61%
Feb-13
78.75
82.00
4.13%
129.57
149.00
89.21%
Mar-13
81.90
82.00
0.12%
129.57
149.00
81.93%
Apr-13
82.81
82.00
-0.98%
129.57
149.00
79.93%
Jun-13
84.70
82.00
-3.19%
129.57
149.00
75.91%
Jul-13
78.89
82.00
3.94%
129.57
149.00
88.87%
Aug-13
77.00
82.00
6.49%
119.20
149.00
93.51%
Sep-13
84.65
82.00
-3.13%
91.68
114.60
35.38%
Oct-13
86.95
82.00
-5.69%
91.68
114.60
31.80%
Nov-13
80.55
82.00
1.80%
91.68
114.60
42.27%
Dec-13
73.20
82.00
12.02%
91.68
114.60
56.56%
Jan-14
73.75
82.00
11.19%
86.96
100.00
35.59%
Feb-14
79.55
82.00
3.08%
86.96
100.00
25.71%
Mar-14
81.40
82.00
0.74%
86.96
100.00
22.85%
Apr-14
79.70
82.00
2.89%
86.00
100.00
25.47%
May-14
83.50
82.00
-1.80%
86.00
100.00
19.76%
Jun-14
85.15
82.00
-3.70%
86.00
100.00
17.44%
Aug-14
85.75
82.00
-4.37%
96.50
111.00
29.45%
Sep-14
88.00
82.00
-6.82%
96.50
111.00
26.14%
Oct-14
83.65
82.00
-1.97%
96.50
111.00
32.70%
Nov-14
82.50
82.00
-0.61%
96.50
111.00
34.55%
Dec-14
82.95
82.00
-1.15%
92.17
106.00
27.79%
TOTAL
20.65%
63.04%
Legend:
n Continue Buying
Stocks
Update
Stocks
Update
Volume 5, No. 21
n Stop Buying
November 2014
Page 5 of 8
STOCK
SYMBOL
DATE
BOUGHT
PRICE
BOUGHT
PRICE
TODAY
YOUR
RETURN
BUY BELOW
PRICE
TARGET
PRICE
EXPECTED
GROWTH
MEG
May-13
4.23
4.75
12.29%
4.16
4.78
13.00%
Jun-13
3.67
4.75
29.43%
4.16
4.78
30.25%
Jul-13
3.15
4.75
50.79%
4.16
4.78
51.75%
Aug-13
3.40
4.75
39.71%
3.89
4.87
43.24%
Sep-13
3.21
4.75
47.98%
3.89
4.87
51.71%
Oct-13
3.64
4.75
30.49%
3.89
4.87
33.79%
Nov-13
3.58
4.75
32.68%
3.89
4.87
36.03%
Dec-13
3.23
4.75
47.06%
3.89
4.87
50.77%
Jan-14
3.36
4.75
41.37%
3.95
4.54
35.12%
Feb-14
3.78
4.75
25.66%
4.70
5.48
44.97%
Apr-14
4.43
4.75
7.22%
4.70
5.48
23.70%
May-14
4.65
4.75
2.15%
4.70
5.48
17.85%
Jun-14
4.51
4.75
5.32%
4.70
5.48
21.51%
Jul-14
4.47
4.75
6.26%
4.70
5.48
22.60%
Aug-14
4.26
4.75
11.50%
4.58
5.73
34.51%
Sep-14
4.30
4.75
10.47%
4.98
5.73
33.26%
TOTAL
25.02%
34.00%
MER
Sep-14
258.00
255.80
-0.85%
284.00
355.00
37.60%
Oct-14
260.00
255.80
-1.62%
284.00
355.00
36.54%
Nov-14
262.00
255.80
-2.37%
284.00
355.00
35.50%
Dec-14
261.80
255.80
-2.29%
308.70
355.00
35.60%
TOTAL
-1.78%
36.31%
SMPH
Oct-13
16.90
16.90
0.00%
17.20
21.50
27.22%
Nov-13
16.40
16.90
3.05%
17.20
21.50
31.10%
Dec-13
15.10
16.90
11.92%
17.20
21.50
42.38%
Jan-14
14.68
16.90
15.12%
16.73
19.41
32.22%
Feb-14
14.70
16.90
14.97%
16.73
19.41
32.04%
Mar-14
14.90
16.90
13.42%
16.73
19.41
30.27%
Apr-14
14.90
16.90
13.42%
16.80
19.41
30.27%
May-14
16.34
16.90
3.43%
16.80
19.41
18.79%
Jun-14
16.18
16.90
4.45%
16.80
19.41
19.96%
Jul-14
16.52
16.90
2.30%
16.80
19.41
17.49%
Aug-14
15.40
16.90
9.74%
17.60
20.30
31.82%
Sep-14
16.64
16.90
1.56%
17.60
20.30
22.00%
Oct-14
16.50
16.90
2.42%
17.60
20.30
23.03%
Nov-14
17.48
16.90
-3.32%
17.60
20.30
16.13%
Dec-14
16.98
16.90
-0.47%
17.60
20.30
19.55%
TOTAL
6.13%
26.28%
Legend:
n Continue Buying
Stocks
Update
Stocks
Update
Volume 5, No. 24
n Stop Buying
December 2014
Page 6 of 8
STOCK
SYMBOL
TIME
RECOMMENDED
ESTIMATED
TIME HELD
PRICE
RANGE
ESTIMATED
RETURN
Alliance Global
AGI
January 2013 to
February 2013
1 Month
P17.54 to P20.50
16.88%
Meralco
MER
January 2013 to
April 2013
3 Months
P268.00 to P377.00
28..05%
First Philippine
Holdings
FPH
25 Months
P63.18 to P95.20
32.92%%
JG Summit
Holdings
JGS
February 12 to
October 2013
18 Months
P25.75 to P43.50
39.96%
STOCK
SYMBOL
TIME
RECOMMENDED
ESTIMATED
TIME HELD
PRICE
RANGE
ESTIMATED
RETURN
Ayala Land
ALI
9 Months
P15.09 to P21.65
35%
Nickel Asia
NIKL
2 Months
P23.75 to P26.20
10.32%
Bank of The
Philippine Islands
BPI
February 2012 to
November 2012 (4th week)
10 Months
P68.45 to P91.00
34.29%
Ayala Corporation
AC
October 2012 to
December 2012
(2nd week)
2 Months
P440.00 to P520.00
17.65%
SM Prime
Holdings
SMPH
February 2012 to
December 2012 (1st week)
10 Months
P12.48 to P17.00
27.75%
Alliance Global
AGI
January 2013 to
February 2013
1 Month
P17.54 to P20.50
16.88%
Meralco
MER
January 2013 to
April 2013
3 Months
P268.00 to P377.00
28..05%
First Phlippine
Holdings
FPH
25 Months
P63.18 to P95.20
32.92%%
JG Summit
Holdings
JGS
February 12 to
October 2013
18 Months
P25.75 to P43.50
39.96%
(Disclaimer: Past performance doesnt guarantee that youll have the exact same results in the future. After all, your
earnings all depend on the markets performance.)
Mike Vias is an Investment Trainer of COL Financial Group, Inc. He is a Certified
Securities Representative and Certified Investment Solicitor.
Stocks
Update
Stocks
Update
Volume 5, No. 24
December 2014
Page 8 of 8
P125
only
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