Best-traded stocks may not be the best stocks to invest in for the year. But there are still good stocks to invest in today with high return on investments . But to be successful, you need to understand teh stock market trends over the past decades. Many people believe that they should hitch up their coatails to the nearest runnaway train. It can be tempting to latch on to those stocks that have sizzle and excitment. But history often reflects that it is wiser to take a longer term view. Those stocks that everyone seems to crowd to today, can often sooner than you realize, turn out to be a flash in the pan. Rather, its better to look at certain key fundamentals. One such fundamental is how stable has the company’s business model been in the past and how long can the company maintain its leverage. For the longest of time, the most successful investor in America, Warren Buffet, avoided certain sectors simply because he either did not understand the business or was uncertain as to whether the company could withstand the longer term trials and tribulations of the market place. Technology stocks are an example and because Warren could not accurately project certain fundamentals accurately over the long term due to the rapid change in technology, he avoided investments in the sector.
But times are a changing and recently Mr. Buffet has taken an agressive position in IBM. He did so not because he recently became a technology guru, but rather he re-evaluated his assumptions regarding IBM business model and their place in the technology sector. IBM is much less reliant on hardware and mainframe sales, but is not providing a valuable computer support and services, integration, and consulting role to its many clients.
So big Blue (i.e. IBM) qualifies for a best stock to invest in and I would encourage investors to also take a close look at other types of investments that make up the Warren Buffet’s portfolio of holdings. You see, he often stays with the basics that are pillars to how the economy churns. So we are talking quality banks, insurance companies, food and beverage companies (i.e. think Coke and Beer), railroads, and energy. And we are also talking about dividend paying companies.
You can chase a dream that the sizzle of the hot stocks offer or you can walk in the steps of the world’s greater investor.
Stock Opportuntities in the Philippines!
Now if you are of the mind to play with the sizzle, then take a look at some of the opportunities in emerging and developing economies.
Prince Anthony Yeung of AB Capital Securities advises investors who want to start buying good stocks for short-term and long-term investment to look at the banking and utilities sector particularly Security Bank (SECB), RCBC (RCB), Aboitiz Power (AP), Energy Development Corporation (EDC).
Photo courtesy of Depositphotos
* Security Bank (SECB)
Security Bank Corporation (SECB) was incorporated on May 8, 1951 and started its operations as a commercial bank on June 18, 1951. SECB secured approval from the Bangko Sentral ng Pilipinas in 1994 to operate as a universal bank allowing the company to expand its financial services and revenue sources. In 2006, SECB received BSP’s approval to engage in expanded derivatives activities in both its regular and foreign currency deposit unit books.
SECB’s operating businesses are recognized and managed separately according to the nature of services provided and the different markets served with each segment representing a strategic business unit. The company’s principal business activities are organized into commercial banking, which encompasses the corporate relationship group, the branch banking group and consumer lending, and investment banking, which encompasses the treasury group, the fixed income & securities division and SECB’s investment house.
As of December 31, 2007, SECB had a network of 114 online branches, 72 of which are located in Metro Manila and 42 situated outside Metro Manila, and 126 automated teller machines.
Business Address
Security Bank Centre
6776 Ayala Ave., Makati City 0719
Telephone No/s.: 867-6788
Fax No.: 891-1049
Email Address: corsec@securitybank.com.ph
Company Website: http://www.securitybank.com.ph
*RCBC (RCB)
Rizal Commercial Banking Corporation (RCB) was originally incorporated on September 23, 1960 under the name Rizal Development Bank and began operations as a private development bank in the province of Rizal. It was acquired in 1962 by members of the Yuchengco Group of Companies (YGC), a financial services conglomerate with market presence in insurance and other risk management services. In 1963, the company received approval from the Bangko Sentral ng Pilipinas to operate as a commercial bank and began operations under its present name, Rizal Commercial Banking Corporation. RCB acquired its universal banking license in 1989.
As a universal bank, RCB is engaged in all aspects of banking. It provides products and services related to traditional loans and deposits, trade finance, domestic and foreign fund transfers or remittance, cash management, treasury, and trust and custodianship services. The company and its subsidiaries are also engaged in all aspects of traditional banking, investment banking, retail financing, leasing, and stock brokering. Additionally, through its universal banking license, RCB is allowed to perform a number of expanded commercial and investment functions and to invest in the equity of a variety of allied and non-allied financial and non-financial undertakings.
RCB’s subsidiaries include, among others, RCBC Capital Corporation, Bankard, Inc., RCBC Savings Bank, RCBC International Finance Limited, RCBC Land, Inc. and New Pacific Resources Management. As of December 31, 2007, RCB had a countrywide total of 301 branches.
Business Address
12/F Yuchengco Tower, RCBC Plaza, 6819 Ayala Ave., cor. Sen. Gil Puyat Ave., Makati City
Telephone No/s.: 894-9000; 845-0158
Fax No.: 894-9958
Email Address: webmaster@rcbc.com
Company Website: http://www.rcbc.com
*Aboitiz Power (AP)
Aboitiz Power Corporation (AP) was incorporated on February 13, 1998 as a holding company for the Aboitiz Group’s investments in power generation and distribution. However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned power generation assets only. The divestment by AP of its power distribution assets was achieved through a property dividend declaration in the form of AP’s ownership interests in its different power distribution companies. The property dividend declaration effectively transferred direct control over the Aboitiz Group?s power distribution business to Aboitiz Equity Ventures, Inc.
AP conducts its power generation activities through its subsidiaries and affiliates, namely, Philippine Hydropower Corporation, Hedcor, Inc., Luzon Hydro Corporation, SN Aboitiz Power-Magat Inc., SN Aboitiz Hydro Inc., Hedcor Sibulan, Inc., Hedcor Tamugan, Inc., East Asia Utilities Corporation, Cebu Private Power Corporation, Cebu Private Power Corporation, Abovant Holdings, Inc., Southern Philippines Power Corporation, Western Mindanao Power Corporation, and Redondo Peninsula Energy, Inc.
AP also owns interests in several distribution utilities in Luzon, Visayas and Mindanao, including Visayan Electric Company, Inc. and Davao Light & Power Company, Inc. AP has additional interests in Mactan Enerzone Corporation, Balamban Enerzone Corporation, Cotabato Light & Power Company, Inc., Subic Enerzone Corporation and San Fernando Electric Light and Power Co., Inc.
Business Address
Aboitiz Corporate Center
Gov. Manuel A. Cuenco Avenue
Kasambagan, Cebu City
Philippines 6000
Telephone No/s.: 2312549
Website Address: http://www.aboitizpower.com/
* Energy Development Corporation (EDC) http://www.energy.com.ph/
Energy Development Corporation engages in the production of geothermal energy in the Philippines. The company primarily explores, develops, and operates geothermal energy projects. It is also involved in geothermal drilling and consultancy services.
The Electricity segment sells electricity generated by its power plants. The Steam segment sells steam which is covered by the GSCs. The Services segment engages in the construction and drilling operations.
The company operates 12 geothermal steamfields in the 5 geothermal service contract areas where it is principally involved in: the production of geothermal steam for sale to National Power Corporation (NPC) pursuant to Steam Sales Agreements (SSAs); generation of electricity for sale to NPC pursuant to Power Purchase Agreements (PPAs), and for Northern Negros to electric cooperative and distribution utilities pursuant to an Electricity Sales Agreement (ESA); and provides drilling equipment and rig personnel to the Lihir Gold Limited. The company’s geothermal projects are located in areas, such as Leyte Geothermal Production Field, Southern Negros Geothermal Production Field, BacMan Geothermal Production Field, Mindanao Geothermal Production Field and Northern Negros Geothermal Production Field. The company also sells electricity to Iloilo Electric Cooperative I under the Electricity Sales Agreement. Separately, it also has drilling activities in Papua New Guinea.
The company, in 2008, acquired a total of 60% interest in FG Hydro from First Gen. FG Hydro operates the 112 Megawatt (MW) Pantabangan and Masiway Hydro-Electric Power Plants located in Nueva Ecija, Philippines. FG Hydro sells electricity to Wholesale Electricity Spot Market and to various electric companies under the Transition Power Supply Contracts.
Business Address
Energy Center
Merritt Road, Fort Bonifacio
Taguig City, 1201
Philippines
Phone: 63 2 893 6001
Fax: 63 2 840 1575
Company Website: www.energy.com.ph
These stocks are expected to appreciate next year, supported by the strong fundamentals of the companies. With the economy started to show signs of recovering, many are now optimistic of a stock market rally for the whole year in the Philippine Stock Exchange. Certainly, the equities market is ripe for a rally. And if it happens, be ready in investing in the stock market and looking for the good stocks to invest in with your hard-earned money.
Other best stocks to buy now and worth considering according to Bernard Avinante, research analyst of Wealth Securities.
1. Philippine Long Distance Telephone Company (PLDT) for telecommunications sector
2. SM Investments Corporation for holding firms
3. Metrobank for the financial sector
4. Robinsons Land Corporation for the property sector
5. SM Development for the property sector
6. Universal Robina Corporation (URC) for the consumer sector
Most of the stocks of these companies are also traded in the best online stock trading companies that will give you opportunities to buy stocks online.
Start planning up on how to take care of your finances for future investments. GoldenTree Asset Management and other firms can assist anybody in dealing such matters.
If you want to invest in the stock market today, here’s a great post to read to learn how to invest in the stock market profitably.
Hopefully EDC will soar its price by the end of this year and many investors will pick it because it will really help the Philippines in terms of our energy needs in the future, clean and renewable energy.
sir/madam: can u pls explain to me on how to invest on those aforementioned companies. what is the minimum amount could invest?is it safe to invest here? tnx
the stock market game is freshhhhh dawg