Investing in Philippines: TEL: Where To Now?


Monday, June 25, 2012

TEL: Where To Now?

After all the negativity that lurked in the stock market(and I guess it is still lurking out there in Europe), the Philippine Stock Exchange is again in the positive and 5,000 level area. 

One of the stocks everybody would probably want to have in their portfolio is TEL(PLDT). I once posted here about TEL's not so stellar performance in 2011, when PLDT chairman Manuel V. Pangilinan announced in their  FY 2011 Core Income Reports that they are not expecting to have a very bright 201 and even maybe in 2012 but rather see this as a period of re-alignment in connection to PLDT's acquisition of Digitel. And as everyone knows, PLDT's share have gone done to as low as 2300 levels for the past months which believe was mainly due to the issue on the capital requirements which finally resolved.

Looking at the chart today I see some sudden rise in the past 3-4 days even in the midst of the turmoil in the stock market world.

When I read and have seen that PLDT started to go south I started buying blocks of shares to take advantage of the low price of this blue chip but having to chunk out huge portion of your portfolio did have a drawback. One is that I missed out profit taking on small stocks that went up during those bearish months. Another is that PLDT's share price didn't really drop at an instant but slowly thus I ended up not effectively cost averaging and have to stop buying when TEL was nearly 50% of my portfolio.

A little more and I can see the fruits of my patience.

Some good news I am hearing are below:

 With that, I guess PLDT is again positioned to achieve its stellar performance in 2010 of having an all time high net income of 42 billion.

As for me I am crossing my fingers and hope that in the coming months my patience pays of with TEL.


Dalamar said...

Did you check the economic statements of the company?

Investing in Philippines said...

Economic statements or financial statements? Yes I did... TEL has been earning but comparing earnings from 2010, 2011, and 2012 where 2010 has been the best year while due to the acquisition of Digitel in 2011, the performance of TEL decline as compared to 2010. The expected turn around of the Digitel acquisition is about 2-3 years thus it is stil expected at 2012 to be just within the level of 2011. Fundamentally TEL is ok being primarily a utilities company where it is heavily invested in infrastructure you would expect a not so good Current ration and a big chunk of operating finds source out from lenders.

Dalamar said...

I mean the main ratios PER, Dividends, Price to Book Value... and the comparison with the peers, do you have the URL to get the financial statements? I'll have a look.

Investing in Philippines said...

You can check at