My Personal Analysis: Energy Development Corporation

source: http://www.energy.com.ph/

Energy Development Corporation (EDC) is the Philippines's pioneer and leading geothermal energy generator for the past 30 years. This Lopez led company which was formerly under PNOC has tapped the Philippines's renewable energy source. 

EDC is primarily engaged in geothermal exploration and development. Other areas of their operation includes Reservoir Engineering and Management, Steamfield Commissioning, Operations and Maintenance, Environmental Management, Energy Research and Development, Project Planning and Construction and

Engineering Design

EDC also has a subsidiary in Chile, EDC Chile Limitada, to bag possible contracts to build and operate geothermal plants in Chile. An excerpt from BusinessWorld states that EDC has extended Letters of Credit amounting to $80 million for financial support(click here to read the entire article) 

Looking at EDC's 10 year price graph it shows a remarkable cup and handle formation:

 Below is the one year price graph:

 

Graphs source: www.citiseconline.com

The cup and handle formation may indicate an expected uptrend in the coming weeks or months. A short rise in price was noted after the handle formation. The price of EDC has been up for the past two weeks and expectation of an uptrend will be seen in the coming days or weeks.

Notable news about EDC are their recent bagging of 7 power supply contracts  with electric cooperatives in Leyte and Negros and the 31% increase in net income for FY 2010. Also EDC has recently issued a $300 million bond to support their expansion projects(click here to read full story).

Looking at EDC fundamentally, current ratio is at a healthy 1.97 indicating liquidity primarily due to proceeds of bond offering and settlement of Yen denominated loans. Due to the nature of the industry the company has a Debt to equity ratio of 1.28 indicating that the company is leverage by using debt to finance expansion projects.  

Net income as compared to last year increase by 31% due to increase of electricity sales. PE ratio TTM(trailing twelve months) is at 27.56 against industry of 7.42 while Price to Book Value MRQ(Most Recent Quarter) is at 3.71(source reuters.com) this indicates that the EDC share is at a level we can say that is not overprice nor underprice. With the recent expansion programs which are likely to materialize due to approval of long term loans, EDC's price has been seen by analyst to go up in the coming weeks. With the latest developments in EDC, investors are now unto it thus a high PE ratio is generated.

Below are screenshots of EDC's FY2010 reports.

source:http://www.energy.com.ph/investor-relations/financial-reports/

In my opinion EDC is a good buy for the long term. The energy sector is one of the things that is necessary in the growth of the country and use of renewable energy is now preferred due to the latest nuclear crisis in Japan. Current projects and expansion programs of EDC are seen as potential for the next years thus recommendation for it is for long term. 

Again this is just my opinion as always TRADE AT YOUR OWN RISK. 



PS. To read more technical analysis of stocks check my beloved's blog www.beautifulmantra.blogspot.com

My Personal Analysis: Energy Development Corporation

source: http://www.energy.com.ph/

Energy Development Corporation (EDC) is the Philippines's pioneer and leading geothermal energy generator for the past 30 years. This Lopez led company which was formerly under PNOC has tapped the Philippines's renewable energy source. 

EDC is primarily engaged in geothermal exploration and development. Other areas of their operation includes Reservoir Engineering and Management, Steamfield Commissioning, Operations and Maintenance, Environmental Management, Energy Research and Development, Project Planning and Construction and

Engineering Design

EDC also has a subsidiary in Chile, EDC Chile Limitada, to bag possible contracts to build and operate geothermal plants in Chile. An excerpt from BusinessWorld states that EDC has extended Letters of Credit amounting to $80 million for financial support(click here to read the entire article) 

Looking at EDC's 10 year price graph it shows a remarkable cup and handle formation:

 Below is the one year price graph:

 

Graphs source: www.citiseconline.com

The cup and handle formation may indicate an expected uptrend in the coming weeks or months. A short rise in price was noted after the handle formation. The price of EDC has been up for the past two weeks and expectation of an uptrend will be seen in the coming days or weeks.

Notable news about EDC are their recent bagging of 7 power supply contracts  with electric cooperatives in Leyte and Negros and the 31% increase in net income for FY 2010. Also EDC has recently issued a $300 million bond to support their expansion projects(click here to read full story).

Looking at EDC fundamentally, current ratio is at a healthy 1.97 indicating liquidity primarily due to proceeds of bond offering and settlement of Yen denominated loans. Due to the nature of the industry the company has a Debt to equity ratio of 1.28 indicating that the company is leverage by using debt to finance expansion projects.  

Net income as compared to last year increase by 31% due to increase of electricity sales. PE ratio TTM(trailing twelve months) is at 27.56 against industry of 7.42 while Price to Book Value MRQ(Most Recent Quarter) is at 3.71(source reuters.com) this indicates that the EDC share is at a level we can say that is not overprice nor underprice. With the recent expansion programs which are likely to materialize due to approval of long term loans, EDC's price has been seen by analyst to go up in the coming weeks. With the latest developments in EDC, investors are now unto it thus a high PE ratio is generated.

Below are screenshots of EDC's FY2010 reports.

source:http://www.energy.com.ph/investor-relations/financial-reports/

In my opinion EDC is a good buy for the long term. The energy sector is one of the things that is necessary in the growth of the country and use of renewable energy is now preferred due to the latest nuclear crisis in Japan. Current projects and expansion programs of EDC are seen as potential for the next years thus recommendation for it is for long term. 

Again this is just my opinion as always TRADE AT YOUR OWN RISK. 



PS. To read more technical analysis of stocks check my beloved's blog www.beautifulmantra.blogspot.com

7 Rules of Stock investing

source: http://www.h-l.co.uk/

I know I have mentioned this rules already but I want to reiterate it for the benefit of new stock investors in the Philippines.

Again these rules are our personal rules me and a bunch of my stock investor friends keep on reminding ourselves in our quest to be financially free. I hope these will also benefit you as you step into this vehicle or means of achieving financial freedom.

1. Only free cash

Most people believed that only the rich with tons of money can invest in the stock market. In reality you only need a minimum of 5,000.00 pesos to invest in the Philippine Stock Market using an online stockbroker. Now we only say invest only your free cash because it would be miserable to pull out what you have invested when the need for cash arises. And the worse is when you pull out your investments the stocks you are holding have a market price below your average cost thus ending at a loss. 

2. Don't be ashamed to ask

In the stock market information plays a big part. Knowing what is a stock, what is the companies current situation, what is the trend, what is the entry point and the likes. As you ask you must be able to acquire knowledge which you can use to guide you as you do your stock investing activities. Learn from your mistakes and research or analyze why you did not get your stock purchase or why is the stock at a low level.

3. Pocket your profits, moderate your greed

No one can really tell when will the stock market will go up or down. Thus one has to set until where you are willing to accept profit so that when the stock price reaches that level you sell your stock and keep the profit. Most of the time people keep on waiting and waiting for the stock to be high and when the stock price suddenly drops they wont be able to sell their stock at the desired price thus ending selling their stock at lower profit or worst at a loss because the stock went down abruptly.

4. When in doubt don't buy


Always do your due diligence or research before buying. Don't buy because your neighbor says so. Always research about the stock you wanted to purchase. In relation to this don't be afraid to ask people who knew and also invest in stock. Most people ask opinion from people who are not investing thus they make wrong stock picks. Educate yourself. In the very first part it would be very hard since everything to you is new. The terms will make your nose bleed and your brain freeze and you might think you are talking to an alien who have advanced intelligence when you talk to someone who has been successful in investing. They are the mentors and though they themselves are mentors they too do research. So when doubtful about a stock that you want to purchase do your research first before  buying.


5. Set aside emergency fund for personal use and another for bargain buying


Again in relation to put only free cash in stock investment, one has to set aside emergency fund to avoid pulling out your investment at a loss. Also set aside free cash for bargain hunting. Often times the market goes into what we call a healthy correction. When this comes prices go down to correct itself from being saturated. This is the best time to buy specially blue chips since most will have a lower price due to saturation. Those who own the stock before are now selling thus in order to sell they have to lower their asking price. It is also the best time to cost average for the stocks that you have been holding.


6. Trade at your own risk


Again as we said nobody can say when will the stock go up or down thus you should be accountable for your own stock bids and not blame somebody else when you make bad buys. You might buy a stock today and it could be possible that the next day the stock will be down and the other day and still the next week. Even if a mentor or a person with a good track record at stock investing said so and you relied on his word you should not put the blame on them when you made a bad stock buy. It could be that they are in a different but advantageous position thus they are able to make profit out of it and you on the other hand loss.


7. Share your blessings


Always set part of your blessings to give back to charity. Giving makes that sense of abundance because you can give a portion of what you earn. When you think abundance it creates that feeling of fulfillment and it would make you feel not limited thus you also make your bids as if you are a millionaire and big time investor.

 

7 Rules of Stock investing

source: http://www.h-l.co.uk/

I know I have mentioned this rules already but I want to reiterate it for the benefit of new stock investors in the Philippines.

Again these rules are our personal rules me and a bunch of my stock investor friends keep on reminding ourselves in our quest to be financially free. I hope these will also benefit you as you step into this vehicle or means of achieving financial freedom.

1. Only free cash

Most people believed that only the rich with tons of money can invest in the stock market. In reality you only need a minimum of 5,000.00 pesos to invest in the Philippine Stock Market using an online stockbroker. Now we only say invest only your free cash because it would be miserable to pull out what you have invested when the need for cash arises. And the worse is when you pull out your investments the stocks you are holding have a market price below your average cost thus ending at a loss. 

2. Don't be ashamed to ask

In the stock market information plays a big part. Knowing what is a stock, what is the companies current situation, what is the trend, what is the entry point and the likes. As you ask you must be able to acquire knowledge which you can use to guide you as you do your stock investing activities. Learn from your mistakes and research or analyze why you did not get your stock purchase or why is the stock at a low level.

3. Pocket your profits, moderate your greed

No one can really tell when will the stock market will go up or down. Thus one has to set until where you are willing to accept profit so that when the stock price reaches that level you sell your stock and keep the profit. Most of the time people keep on waiting and waiting for the stock to be high and when the stock price suddenly drops they wont be able to sell their stock at the desired price thus ending selling their stock at lower profit or worst at a loss because the stock went down abruptly.

4. When in doubt don't buy


Always do your due diligence or research before buying. Don't buy because your neighbor says so. Always research about the stock you wanted to purchase. In relation to this don't be afraid to ask people who knew and also invest in stock. Most people ask opinion from people who are not investing thus they make wrong stock picks. Educate yourself. In the very first part it would be very hard since everything to you is new. The terms will make your nose bleed and your brain freeze and you might think you are talking to an alien who have advanced intelligence when you talk to someone who has been successful in investing. They are the mentors and though they themselves are mentors they too do research. So when doubtful about a stock that you want to purchase do your research first before  buying.


5. Set aside emergency fund for personal use and another for bargain buying


Again in relation to put only free cash in stock investment, one has to set aside emergency fund to avoid pulling out your investment at a loss. Also set aside free cash for bargain hunting. Often times the market goes into what we call a healthy correction. When this comes prices go down to correct itself from being saturated. This is the best time to buy specially blue chips since most will have a lower price due to saturation. Those who own the stock before are now selling thus in order to sell they have to lower their asking price. It is also the best time to cost average for the stocks that you have been holding.


6. Trade at your own risk


Again as we said nobody can say when will the stock go up or down thus you should be accountable for your own stock bids and not blame somebody else when you make bad buys. You might buy a stock today and it could be possible that the next day the stock will be down and the other day and still the next week. Even if a mentor or a person with a good track record at stock investing said so and you relied on his word you should not put the blame on them when you made a bad stock buy. It could be that they are in a different but advantageous position thus they are able to make profit out of it and you on the other hand loss.


7. Share your blessings


Always set part of your blessings to give back to charity. Giving makes that sense of abundance because you can give a portion of what you earn. When you think abundance it creates that feeling of fulfillment and it would make you feel not limited thus you also make your bids as if you are a millionaire and big time investor.

 

What is Expert Stock Screener?

Are you a new in the stock trading? Probably you have been introduced to Value investing which focuses on fundamental analysis as well as Momentum trading which requires technical analysis and I guess your head ache with all these analysis right?

Each has merit in your decision making thus you cant just use one analysis over the other. Using the two though would be tedious and it might use a lot of your time that you wont be able to catch the market. 

There is a company that provides a product called Expert Stock Screener. 

source: http://www.apftrading.com

APF Trading is a Singapore based company that provides trading advisory services and products which include Expert Stock Screener. They provide the product into specific market like the PSE(Philippine Stock Exchange), Singapore Stock Exchange,  Bursa Malaysia, Indonesia Stock Exchange, Stock Exchange of Thailand, Hongkong Stock Exchange and India Stock Exchanges.

What is the Expert Stock Screener?

Below is an introduction from APF Trading's website about Expert Stock Screener:

APF Trading has designed an Equities Screener, which combines BOTH Fundamental and Technical analysis, so investors can easily seek alignment between the 2 approaches, and at one glance zoom in on the most promising stocks. 

Fundamental Analysis Approach: Provides you the potential upside of stocks as indicated by Financial Institutions. 

Technical Analysis Approach: Uses APF Trading's proprietary algorithm which quantifies daily/weekly/monthly chart action, based on the Japanese Ichimoku Trading system and other unique qualifiers.

How does it help you?

• Expert Stock Valuations stack odds in your favor

• Maximize Profits by zooming in and sorting out stocks with the most upside

• Gain Unfair Advantage by quickly understanding smart money flows, without the need to read through 1000s of research reports

• Advanced Insight through alignment of both fundamental and technical direction

Check this video to understand how APF Trading combined Fundamental and Technical analysis into Expert Stock Screener:

Interested in APF Trading's Expert Stock Screener? 

Learn more about Expert Stock Screener click here and make that profitable stock trade right now.

What is Expert Stock Screener?

Are you a new in the stock trading? Probably you have been introduced to Value investing which focuses on fundamental analysis as well as Momentum trading which requires technical analysis and I guess your head ache with all these analysis right?

Each has merit in your decision making thus you cant just use one analysis over the other. Using the two though would be tedious and it might use a lot of your time that you wont be able to catch the market. 

There is a company that provides a product called Expert Stock Screener. 

source: http://www.apftrading.com

APF Trading is a Singapore based company that provides trading advisory services and products which include Expert Stock Screener. They provide the product into specific market like the PSE(Philippine Stock Exchange), Singapore Stock Exchange,  Bursa Malaysia, Indonesia Stock Exchange, Stock Exchange of Thailand, Hongkong Stock Exchange and India Stock Exchanges.

What is the Expert Stock Screener?

Below is an introduction from APF Trading's website about Expert Stock Screener:

APF Trading has designed an Equities Screener, which combines BOTH Fundamental and Technical analysis, so investors can easily seek alignment between the 2 approaches, and at one glance zoom in on the most promising stocks. 

Fundamental Analysis Approach: Provides you the potential upside of stocks as indicated by Financial Institutions. 

Technical Analysis Approach: Uses APF Trading's proprietary algorithm which quantifies daily/weekly/monthly chart action, based on the Japanese Ichimoku Trading system and other unique qualifiers.

How does it help you?

• Expert Stock Valuations stack odds in your favor

• Maximize Profits by zooming in and sorting out stocks with the most upside

• Gain Unfair Advantage by quickly understanding smart money flows, without the need to read through 1000s of research reports

• Advanced Insight through alignment of both fundamental and technical direction

Check this video to understand how APF Trading combined Fundamental and Technical analysis into Expert Stock Screener:

Interested in APF Trading's Expert Stock Screener? 

Learn more about Expert Stock Screener click here and make that profitable stock trade right now.

Another thing that makes the rich richer and the poor poorer

 source: http://www.kccatalyst.com

If you remember my post on the same topic, you will remember that one thing that makes such things happen is because of TAX. 

Now there is another thing that makes rich richer and that is what we call ATTITUDE.

If you have already read Robert Kiyosaki's book "Rich Dad, Poor Dad" I believe you get the whole idea.

For those who haven't let me dispense what so far I have learned and digested.

source: http://www.sha.tc/tips/rich-dad-poor-dad

As Kiyosaki's rich dad, which is his friend Mike's dad, said the rich become richer because they keep on increasing their asset while the poor become poorer because they only increase their earnings.

The key ATTITUDE here lies on the definition of an asset. The poor define asset as a thing of value they owned. The rich define asset as a thing that puts money in their pocket. Because of this definitions the poor keeps on buying things which they consider has value like cars, house, and jewelries thinking that they have real value. 

 source: http://musicdjnik.blogspot.com/

This attitude is what we call the SPENDING ATTITUDE. And in order to spend they keep on working and working only to buy things for self use and the only way to feed that spending is to increase their earnings; just up to there and no other. Thus they work hours and hours to have overtime pay, slave to bosses so that they get promotion and have a raise, to the point that they try to impress the higher ups so that they get increase or bonus. This is what they call the RAT RACE; you have to work to feed that spending.

On the other hand the rich focus on one thing that is to increase their asset. They don't just buy things of value, they buy asset that put money to their pockets this is what we call INVESTING ATTITUDE. 

 

source: http://www.best-investing-guide.com/

They buy rental property, they buy stocks that give dividends, they buy small business which runs on its own and gives them earnings, they buy  property which can be resold at a gain, and so on. They buy things that generate income and re-invest those income to get more assets that generate income thus their asset increases so their earnings increases until to the point that they don't have to work because their assets generate enough to make them retire young.

The poor complains why the rich don't work hard and yet they have luxury. The poor gets jealous thus he works to earn enough and buy the same things he sees in the rich and end broke because of so much liabilities. The true rich on the other hand waits until his earnings  from his or her income generating assets is more than enough to sustain that asset's operation. The extra earnings becomes free money for her or him to use to buy and enjoy luxury. They only buy on credit to leverage. But there are rich who doesn't know such thus they make bad spending just like the poor and end up broke losing the money they have.

It is on how one handles money. That is why to be truly rich does not necessarily mean filthy rich but rather it is the point where one does not worry where to get the money to buy one's needs and one's luxury from time to time because they have assets that work hard for them.

source: http://sproutednutrition.com/

Another thing that makes the rich richer and the poor poorer

 source: http://www.kccatalyst.com

If you remember my post on the same topic, you will remember that one thing that makes such things happen is because of TAX. 

Now there is another thing that makes rich richer and that is what we call ATTITUDE.

If you have already read Robert Kiyosaki's book "Rich Dad, Poor Dad" I believe you get the whole idea.

For those who haven't let me dispense what so far I have learned and digested.

source: http://www.sha.tc/tips/rich-dad-poor-dad

As Kiyosaki's rich dad, which is his friend Mike's dad, said the rich become richer because they keep on increasing their asset while the poor become poorer because they only increase their earnings.

The key ATTITUDE here lies on the definition of an asset. The poor define asset as a thing of value they owned. The rich define asset as a thing that puts money in their pocket. Because of this definitions the poor keeps on buying things which they consider has value like cars, house, and jewelries thinking that they have real value. 

 source: http://musicdjnik.blogspot.com/

This attitude is what we call the SPENDING ATTITUDE. And in order to spend they keep on working and working only to buy things for self use and the only way to feed that spending is to increase their earnings; just up to there and no other. Thus they work hours and hours to have overtime pay, slave to bosses so that they get promotion and have a raise, to the point that they try to impress the higher ups so that they get increase or bonus. This is what they call the RAT RACE; you have to work to feed that spending.

On the other hand the rich focus on one thing that is to increase their asset. They don't just buy things of value, they buy asset that put money to their pockets this is what we call INVESTING ATTITUDE. 

 

source: http://www.best-investing-guide.com/

They buy rental property, they buy stocks that give dividends, they buy small business which runs on its own and gives them earnings, they buy  property which can be resold at a gain, and so on. They buy things that generate income and re-invest those income to get more assets that generate income thus their asset increases so their earnings increases until to the point that they don't have to work because their assets generate enough to make them retire young.

The poor complains why the rich don't work hard and yet they have luxury. The poor gets jealous thus he works to earn enough and buy the same things he sees in the rich and end broke because of so much liabilities. The true rich on the other hand waits until his earnings  from his or her income generating assets is more than enough to sustain that asset's operation. The extra earnings becomes free money for her or him to use to buy and enjoy luxury. They only buy on credit to leverage. But there are rich who doesn't know such thus they make bad spending just like the poor and end up broke losing the money they have.

It is on how one handles money. That is why to be truly rich does not necessarily mean filthy rich but rather it is the point where one does not worry where to get the money to buy one's needs and one's luxury from time to time because they have assets that work hard for them.

source: http://sproutednutrition.com/