Petron was my favorite issue having a favorable outlook going forward. The recent downward trend was seen as an opportunity to accumulate. I always like Petron for being the biggest player in the Philippine oil industry and it's aggressive expansion to enhance growth.What made the stock tumble in the last weeks? In it's press release, "Petron Corporation Employees' Retirement Plan ("PCERP"), a shareholder of Petron Corporation (the "Company"), has agreed to sell 470,000,000 common shares of the Company at a price of P11.50 per share". This was the culprit at the eyes of punters, but for investors this was a good chance for PCOR to strengthen it's cash position, make a strong base and expand for the long term.
2013 was a good year for Petron, it posted 4.4bil net income 8 times higher than 2012 year on year performance. The question whether this growth is sustainable remains to be optimistic given the track record of the management. The $2bil refinery masterplan will boosts Petron's growth, I expect a big turn around in PCOR's financial strength in the next two years. Petron is currently on the lead in the industry with 2,156 stations nationwide adding up the industrial supply commitment to various industrial sectors.At a conservative point of view, I believe that PCOR will swing better at the end of 3rd quarter of 2014 with immediate target price of P14. Grab PCOR now!
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