Investing in Philippines: My Personal Opinion: SECB


Sunday, July 22, 2012

My Personal Opinion: SECB


A comment prompted me to write an analysis on SECB(it has been a long time since I made analysis like this).

Security Bank(SECB) is one of the Philippine's top 20 banks in terms of Asset, Deposit, & Loans. Primarily owned by the Asiasec Equities & the Dy family, Security Bank started in 1951 and has then gain foot hold in Philippines's banking industry.

One thing that made me think there could be something  good at SECB is that they are still able to generate good income with a nearly 1:1 current ratio, an indicator that the management is doing its job well in leveraging depositor's money. Also first quarter performance reported better figures as compared last year reiterating SECB's focus in growing the business.

Fundamentally SECB again is leveraging by looking at its Debt to Equity ratio last year which is about 6 which is within its industry. Most analyst rate SECB to date as BUY due to a P/E ratio of about 10 meaning it is at its cheapest so far. 

Now looking at its charts which prompted me to ask if it is indeed a symmetrical triangle pattern that could lead to a continuation of its previous trend.

So there you have it. For now that is how I see it, if all things go well and the other issues like the lingering EU debt problem and other new problems like China's slowing growth will not worsen I guess we are seeing a continuation and if you have funds it would be great to buy some while it is still at its breakout point but again this is just my personal opinion. So as always TRADE AT YOUR OWN RISK.


Pinoy Investing said...

bro louis, what's a good start read for technical and fundamental analysis?

Anonymous said...

SECB seems like the fastest moving stock among
bank stocks
,but somehow feels like it is on peak. still,i plan to hold this given the dividend returns.

good luck to us

Investing in Philippines said...

Yes Pinoy Investing lets look forward to that, HOLD and buy some on dips

Louis Delos Angeles said...

hmmm FUNdamental analysis? TECHnical analysis? If you have an online broker check their knowledge center or whatever they call it and learn from there, but I guess watching the explanation in video would be really be more effective. You can check out videos for that