For the last few days, I noted that traders seems so cautious. Most are waiting for the correct entry for selected issues. With the foreign fund exodus, local traders stay alight and waiting for catalyst to move back. Today profit taking was noted plus the uncertainty in Syria. Do we need to avoid the market during this time? It depends on your risk appetite, if you are risk player you may take it as an opportunity to BUY at cheaper price and accumulate. Patience is the key here, you need to wait and set your investment horizon.
I will feature two issues as model which I believe cheap and have a big potential to earn.
SMC - San Miguel Corporation (see the chart)
While we know the strength of the conglomerate and its diversified portfolio, the stock has started to hit the bottom. From high of 120 in May now it's down to 73.90, I believe its lowest since 2012. The stock is consolidating at the support level of 73-75, I am not sure if the support will be sustained. At the current price of 73-76, I believe it's safe to enter.
Another promising pick is CPG - Century Properties Group. (see the chart)
I have been monitoring the movement of CPG since the correction waves, from high of 2.44 the stock dipped to 1.08. Despite the good performance of it's core business, and the net income grew by 11.9% as compared to the 1st half of 2012 (1,056 vs 944). Price earning ratio of 6.40 is way below the 10% plus PE ratio of its peers excluding ALI and RLC. From the chart, I can see an immediate bullish formation that may try the 1.40 level, then 1.60 and may possibly reach my target of 1.75, hopefully.
Cheers and happy trading.
I will feature two issues as model which I believe cheap and have a big potential to earn.
SMC - San Miguel Corporation (see the chart)
Another promising pick is CPG - Century Properties Group. (see the chart)
I have been monitoring the movement of CPG since the correction waves, from high of 2.44 the stock dipped to 1.08. Despite the good performance of it's core business, and the net income grew by 11.9% as compared to the 1st half of 2012 (1,056 vs 944). Price earning ratio of 6.40 is way below the 10% plus PE ratio of its peers excluding ALI and RLC. From the chart, I can see an immediate bullish formation that may try the 1.40 level, then 1.60 and may possibly reach my target of 1.75, hopefully.
Cheers and happy trading.
SMC pull down but I view it as an opportunity to enter. But be sure to wait for the recovery, possibly may take some time to bounce back. It doesn't hold to 70 level support.
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