Year 2016 Performance and Portfolio Rebalancing

For the long-time followers of this blog, you would probably know that we are also managing our own personal investment portfolio in the Philippine stock market. We refer to that portfolio as "Filipino Investor Equity Fund" or simply FIEF. So here's an update on our recent trades and our performance since we started investing in the PSE since March 2010.

PERFORMANCE:

We've managed to perform relatively well for the year 2016 despite the index being down for the whole year, we're up +19.36% vs PCOMP's -2.46% as of 30-Nov-16. The performance was mainly driven by our exposure on RSA stocks, i.e. SMC, PCOR, PF in addition to some notable gains from STI and FOOD. We don't really memorize every single trade that made and lost money because we try to look and manage the portfolio as a whole rather than on an individual stock basis but those are the primary drivers on top of our head.

Since inception-wise we are also performing relatively well vs the PCOMP and S&P 500. FIEF's CAGR is +19.31% in the last 6.69 Years vs PCOMP's +11.99% and S&P 500's +9.94% in the same time period. 

We intend to continue our value investment philosophy moving forward.

Performance Summary:

*In computing the Portfolio performance, everytime we add additional capital to the portfolio the accounting treatment is as if the cash was added at the start of the fiscal year. We believe there's a more accurate way of computing the performance than this method but we're sticking to it because it is simple, it's conservative and it makes intuitive sense.

Top 25 Highest Dividend Yield in the Philippines for Nov 2016

"Top 25 Highest Dividend Yield in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the highest dividend yielding stocks at current market prices.

This will be particularly useful to income investors a.k.a. those investors who like to buy companies that pay dividends.

We used Bloomberg's Dividend Indicated Yield in calculating the numbers defined as:

"The most recently announced gross dividend, annualized based on the Dividend Frequency (DV016, DVD_FREQ), then divided by the current market price. If the security is paying an interim/final dividend, then the indicated yield is calculated by adding the gross amount from the most recently announced interim and the most recently announced final, and dividing the sum by the current market price. Abnormal Dividends are not included in this yield calculation."

Formulas:

Dividend Yield = Dividend Per Share / Stock Price x 100%

Dividend Payout Ratio = Dividend Per Share / Earnings Per Share x 100%

We would like to remind the readers of this website to do due diligence specially on the more iliquid names.

Data as of 25-Nov-16

Dividend Ex-Dates in the Philippines for Nov 2016

"Dividend Ex-Dates in the Philippines" is a monthly publication of by Filipino Investor to give investors in the PSE a sense on when is the upcoming dividend ex-dates of PSE listed stocks in the next three (3) months.

The Dividend Ex-Date is a key date for dividend investors because it is the day when a stock will trade without the dividend (ex-dividend), hence to qualify for dividend payments the investor must buy the stock before the Dividend Ex-Date.

In the table presented, "Dividend Ex-Date" refers to the actual ex-date already announced by the company.

"Next Estimated Ex-Dividend Date" as the name implies, refers to the estimated next dividend ex-date of the company based on their historical trend of dividend releases.

Data as of 25-Nov-16

Top 25 Blue Chips in the Philippines for Nov 2016

"Top 25 Blue Chips in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the largest companies in the Philippines in terms of Market Capitalization at current market prices.

Market Capitalization is computed by multiplying the company's Total Shares Outstanding by it's Current Stock Price.

This will be particularly useful to large-cap investors a.k.a. those investors who like to large, established companies.

We would like to remind the readers of this website to do due diligence before investing. Cheers and enjoy!

Data as of 25-Nov-2016

Top 25 Cheapest Stocks in the Philippines for Nov 2016

"Top 25 Cheapest Stocks in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:

1. P/E, EV/EBITDA, P/B, P/S, P/CF were arranged from lowest to highest (lower the numbers means they are cheaper)

2. Data as of 25-Nov-16

Investment and Life Lessons - Part 9

Here's the PART 9 of our Investment and Life Lessons series. These are the ideas we've gathered from our various readings on business, stocks, economy, money, war, love and life. Our list is getting too long again hence we're sharing it with the Filipino Investors out there for them to learn a thing or two. Cheers!

1. Courage is going from failure to failure without losing enthusiasm - Sir Winston Churchill
2. Words that everyone once used are now obsolete, and so are the men whose names were once on everyone's lips - Marcus Aurelius
3. Necessity never made a good bargain. - Benjamin Franklin
4. Ask not what your country can do for you, ask what you can do for your country - John F. Kennedy
5. Work smart. Get things done. - Susan Wojcicki
6. Can you tell me how our perfect love goes wrong? - Boyz II Men
7. Paranoia ain't the way to live your life from day to day so leave your doubts and your fears behind - N’Sync
8. You have been given the dignity of choice - Jim Rohn

Dividend Ex-Dates in the Philippines for Oct 2016

"Dividend Ex-Dates in the Philippines" is a monthly publication of by Filipino Investor to give investors in the PSE a sense on when is the upcoming dividend ex-dates of PSE listed stocks in the next three (3) months.

The Dividend Ex-Date is a key date for dividend investors because it is the day when a stock will trade without the dividend (ex-dividend), hence to qualify for dividend payments the investor must buy the stock before the Dividend Ex-Date.

In the table presented, "Dividend Ex-Date" refers to the actual ex-date already announced by the company.

"Next Estimated Ex-Dividend Date" as the name implies, refers to the estimated next dividend ex-date of the company based on their historical trend of dividend releases.

Data as of 26-Oct-16

Top 25 Highest Dividend Yield in the Philippines for Oct 2016

"Top 25 Highest Dividend Yield in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the highest dividend yielding stocks at current market prices.

This will be particularly useful to income investors a.k.a. those investors who like to buy companies that pay dividends.

We would like to remind the readers of this website to do due diligence specially on the more iliquid names.

Formulas:

Dividend Yield = Dividend Per Share / Stock Price x 100%

Dividend Payout Ratio = Dividend Per Share / Earnings Per Share x 100%

Data as of 26-Oct-16

Top 25 Cheapest Stocks in the Philippines for Oct 2016

"Top 25 Cheapest Stocks in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:

1. P/E, EV/EBITDA, P/B, P/S, P/CF were arranged from lowest to highest (lower the numbers means they are cheaper)

2. Data as of 26-Oct-16

Top 25 Blue Chips in the Philippines for Oct 2016

"Top 25 Blue Chips in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the largest companies in the Philippines in terms of Market Capitalization at current market prices.

Market Capitalization is computed by multiplying the company's Total Shares Outstanding by it's Current Stock Price.

This will be particularly useful to large-cap investors a.k.a. those investors who like to large, established companies.

We would like to remind the readers of this website to do due diligence before investing. Cheers and enjoy!

Data as of 26-Oct-2016

Mathematical Proof that a Stock's Beta is Equal to the Slope of the Linear Regression using Excel

For this exercise let's say the stock we are trying to study is SM Investments Corp (PSE: SM) and the benchmark is Philippine Composite PSEi Index (PCOMP)

From our readings we've learned that SM's Beta is equal to the Covariance of SM's daily returns vs PCOMP's daily returns divided by the PCOMPs stadard deviation squared.

In addition we've also learned that SM's beta can be derived by getting the slope of the linear regression of the daily returns between a SM and the PCOMP Index.

Let's find out if that is indeed true.

Top 25 Highest Dividend Yield in the Philippines for Sep 2016

"Top 25 Highest Dividend Yield in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the highest dividend yielding stocks at current market prices. 

This will be particularly useful to income investors a.k.a. those investors who like to buy companies that pay dividends.

We would like to remind the readers of this website to do due diligence specially on the more iliquid names.

Formulas:

Dividend Yield = Dividend Per Share / Stock Price x 100%

Dividend Payout Ratio = Dividend Per Share / Earnings Per Share x 100%

Data as of 30-Sep-16

Top 25 Cheapest Stocks in the Philippines for Sep 2016

"Top 25 Cheapest Stocks in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:

1. P/E, EV/EBITDA, P/B, P/S, P/CF were arranged from lowest to highest (lower the numbers means they are cheaper)

2. Data as of 27-Sep-16

Dividend Ex-Dates in the Philippines for Sep 2016

"Dividend Ex-Dates in the Philippines" is a monthly publication of by Filipino Investor to give investors in the PSE a sense on when is the upcoming dividend ex-dates of PSE listed stocks in the next three (3) months.

The Dividend Ex-Date is a key date for dividend investors because it is the day when a stock will trade without the dividend (ex-dividend), hence to qualify for dividend payments the investor must buy the stock before the Dividend Ex-Date. 

In the table presented, "Dividend Ex-Date" refers to the actual ex-date already announced by the company.

"Next Estimated Ex-Dividend Date" as the name implies, refers to the estimated next dividend ex-date of the company based on their historical trend of dividend releases.

Data as of 27-Sep-16.

Top 25 Blue Chips in the Philippines for Sep 2016

"Top 25 Blue Chips in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the largest companies in the Philippines in terms of Market Capitalization at current market prices.

Market Capitalization is computed by multiplying the company's Total Shares Outstanding by it's Current Stock Price.

This will be particularly useful to large-cap investors a.k.a. those investors who like to large, established companies.

We would like to remind the readers of this website to do due diligence before investing. Cheers and enjoy!

**Author's Remarks: We did not expect to find out that SM Investments is actually two times larger than PLDT in terms of market cap at current market prices.**

Data as of 27-Sep-2016

BPI Branch Open on Saturday or Sunday

There are times when we really have to do our banking transactions on the weekends (Saturday or Sunday) due to our work schedule on the weekdays. Hence knowing what specific BPI branches are open on Saturdays and Sundays to facilitate our transactions would be very helpful for us.

Based on our research, we've come up with the list below for BPI branches that are open on the weekends (Saturday or Sunday).

If you think our table on BPI branches that are open on Saturday or Sunday needs some information update please hit the comment section below so we can update the list. We hope you find this useful.

BPI branches open on Saturday or Sunday:

Luzon / Metro Manila

Branch Name:	BPI Glorietta Mall Third Level
Address:	3rd Level Unit 3006 Glorietta 2 Mall, Ayala Center, Makati City, Metro Manila
Phone:	(02)5775497 / (02)4781967
Banking Schedule:	Tuesday - Saturday 10:00 AM - 6:00 PM

Branch Name:	BPI Shangri-La Plaza Mall
Address:	5th Flr Shangri-La Plaza, EDSA cor Shaw Blvd., Mandaluyong City 1552, Metro Manila
Phone:	(02) 2170022 / (02) 6877032
Banking Schedule:	Monday - Friday & Saturday 11:00 AM - 6:00 PM

Branch Name:	BPI Ayala Malls Serin
Address:	Space G-49 Ground Floor, Ayala Malls Serin, Tagaytay-Nasugbu Road, Tagaytay City 4120
Phone:	(046)5126025 / (046)4605609
Banking Schedule:	Tuesday - Saturday 10:00 AM - 6:00 PM

Investment Thesis: Solid Group Inc. (PSE: SGI)

Current Market Price: P 1.29/Share

Annual Sales: P 6.4 B

Net Income: P 486 M

Book Value: P 9.5 B

Current Market Cap: P 2.3 B

5Y Chart

Summary:

1. Very cheap valuations

P/E = 5.64

P/B = 0.24

P/S = 0.29

Dividend Yield = 7.81%

Reader Question: What's your take on $PIP (Pepsi-Cola Products Philippines, Inc.)?

Message from Anonymous to Filipino Investor [Sent on Sep 6, 2016]

Hello, Came across your blog and find some of the articles interesting. It seems you haven't written about an investment idea in a while - last one I can find in March 4, 2015 on AgriNuture. 

Curious to know if you have ever looked at or followed Pepsi? If so would be interested in chatting on the name. 

Best, 

Anonymous

Message from Filipino Investor to Anonymous [Sent on Sep 8, 2016]

Hi Anonymous,

Thank you for your email. Yes, ANI was the last investment idea that we have written in the website but it certainly is not our last. We just happen to have a lot on our plate recently so we were not able to post a complete investment thesis for our readers. :-)

About Pepsi, we are bullish on this stock as it passed our quantitative multifactor model. That said we are a buyer of PIP at current levels [P3.11 per share on Sep 8, 2016].

Note though that our approach to investing is to construct a diversified portfolio of undervalued and fundamentally sound stocks and hold it for as long as the stock still passes our criteria or a more compelling cheaper stock presents itself. That said, we would be buying PIP along with other undervalued stocks and construct portfolio of say about 20 to 25 of them for the Philippines - in essence around 10% of the available stocks listed in the PSE w/c offers around 278 publicly listed companies.

Investment and Life Lessons - Part 8

Here's the PART 8 of our Investment and Life Lessons series. These are the ideas we've gathered from our various readings on business, stocks, economy, money, war, love and life. Our list is getting too long again hence we're sharing it with the Filipino Investors out there for them to learn a thing or two. Cheers!

1. (On Quantitative Investment strategies) We have learned that no one is going to be able to stick to these kinds of strategies unless they know a lot about them - POS
2. One of the largest retail foreign exchange dealers in the United States is Foreign Exchange Capital Markets (FXCM). In 2005, Drew Niv, chief executive of FXCM, remarked to the Wall Street Journal “If 15 percent of [currency] day traders are profitable, I’d be surprised.”
3. The man who doesn't read good books has no advantage over the man who can't read them. - Mark Twain
4. It is my duty to work with men regardless of their nature. I will not be affected by them - Marcus Aurelius
5. Leaders who don’t listen will eventually be surrounded by people who have nothing to say - Andy Stanley
6. We believe in probabilities not possibilities - JOS
7. Self-attribution bias refers to our propensity to ascribe our successes to our skill, while blaming our failures on bad luck, rather than a lack of skill. For example, the stocks we buy that go up show our great stock picking skills, while those we buy that go down do so because of some outside factor, like Congress changing the law or the Federal Reserve increasing interest rates
8. We are predictably irrational - Dan Ariely

The History of "This is the Top" in the Stock Market from 1900 - 2016

Evan Bleker of netnethunter.com twitted this interesting Log-scaled price chart of the Dow Jones Industrial Average (INDU Index) from 1900 to 2016 (116 Year Period) and we thought that looking things at the bigger picture really gives us a perspective on what this so-called stock market tops and bottoms.

**Click Image to enlarge**

Note though that even given same information, two individuals could have different interpretations/decisions based on their individual biases.

But for us at the Filipino Investor, here is our take away from this chart.

Top Twenty Five (25) Cheapest Stocks in the Philippines for August 2016

"Top 25 Cheapest Stocks in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:

1. P/E, EV/EBITDA, P/B, P/S were arranged from lowest to highest (lower the numbers means they are cheaper)

2. DY was arranged from highest to lowest (higher numbers are better/cheaper)

3. Data as of 30-Aug-16

[Reflections] IBM's Deep Blue Defeats World Chess Champion Garry Kasparov in Chess

Back in 1997, the headline says that the World Chess champion Gary Kasparov (the expert) was beaten by IBM's Deep Blue (a computer).

But more importantly we should realize that it was not the computer who beat Kasparov in their match up in that point in time but rather, the summation of the knowledge learned and effort poured by IBM's groups of researchers/developers since Deep Blue's early development in the 1940s.

In essence, the match in 1997 was actually a battle between an individual person - Gary Kasparov vs the team behind Deep Blue from 1940s-1997 (50+ years) w/c was only represented systematically by the Computer.

When framed in that perspective, it actually just made sense that Kasparov lost.

Watch the video here:

Cheers,
Filipino Investor

Dividend Ex-Dates in the Philippines for July 2016

"Dividend Ex-Dates in the Philippines" is a monthly publication of by The Filipino Investor to give investors in the PSE a sense on when is the upcoming dividend ex-dates of PSE listed stocks in the next three (3) months.

The Dividend Ex-Date is a key date for dividend investors because it is the day when a stock will trade without the dividend (ex-dividend), hence to qualify for dividend payments the investor must buy the stock before the Dividend Ex-Date. 

In the table presented, "Dividend Ex-Date" refers to the actual ex-date already announced by the company.

"Next Estimated Ex-Dividend Date" as the name implies, refers to the estimated next dividend ex-date of the company based on their historical trend of dividend releases.

Data as of 29-Jul-16.

Ticker	Short Name	Market Cap (PhP)	Last Price (PhP)	Dividend Ex-Date	Next Estimated Ex-Dividend Date	Dividend Yield
TEL PM Equity	PHILIPP LONG DIS	451,124,461,568	2110	3/9/2016	8/19/2016	5.40
DMPL PM Equity	DEL MONTE PAC LT	24,717,682,688	12.72	8/23/2016		4.93
MFC PM Equity	MANULIFE FIN	1,173,744,779,264	595.0	5/12/2016	8/19/2016	4.51
SLF PM Equity	SUN LIFE FINANCI	894,693,081,088	1460	5/27/2016	8/29/2016	3.98
GLO PM Equity	GLOBE TELECOM	298,670,391,296	2254.00	5/16/2016	8/18/2016	3.90
PSB PM Equity	PHILIPP SAVINGS	24,481,728,512	102	8/3/2016		2.94
MER PM Equity	MANILA ELECTRIC	364,729,139,200	324.6	8/19/2016	4/6/2017	2.84
LR PM Equity	LEISURE & RESORT	7,895,029,760	7	9/27/2016		2.13
EEI PM Equity	EEI CORP	10,155,558,912	9.75	8/26/2016	4/3/2017	2.05
CEU PM Equity	CENTRO ESCOL UNI	3,761,385,472	10.10	8/11/2016		1.98
SMC PM Equity	SAN MIGUEL	197,417,566,208	83	6/28/2016	10/11/2016	1.69
MPI PM Equity	METRO PACIFIC IN	208,015,917,056	7.5	3/23/2016	8/23/2016	1.64
MWC PM Equity	MANILA WATER	53,402,591,232	26.00	3/8/2016	10/13/2016	1.60
ALI PM Equity	AYALA LAND INC	587,771,674,624	40.00	3/8/2016	9/5/2016	1.19
BDO PM Equity	BDO UNIBANK INC	417,299,038,208	114.3	6/10/2016	9/9/2016	1.05
HI PM Equity	HOUSE OF INVEST	4,188,773,632	7	8/9/2016		0.96
PX PM Equity	PHILEX MINING CO	43,080,278,016	9	8/5/2016		0.35
PNB PM Equity*	PHILIPP NATL BNK	78,321,057,792	63	8/16/2016
AUB PM Equity*	ASIA UNITED BANK	22,979,454,976	47	8/2/2016

Source: Bloomberg 

Note: For PNB and AUB this is their first time to announce a Special Cash Dividend hence there is no "Dividend Yield" data available.

DISCLAIMER: 

This is not an investment advice and the The Filipino Investor shall not be responsible or liable for any trading or investment decisions made based on this information.

The Filipino Investor hereby expressly disclaims any responsibility for any error or inaccuracy in the information.