Phisix (September 12, 2008)

Phisix dropped to 2646.12 this week from 2724.72 last week (2.88%). Most stocks went down, except for San Miguel Corp (SMC), which posted a magnificent increase in income last quarter. In fact, based on fundamentals, SMC is still number one, for being most undervalued, that is, compared to its income performance. For my part, I would like to see first the 3rd quarter earnings of SMC. After all, with the current run, it may be in for a correction this coming week.

For the composite index, the downtrend is seen in the MACD, Stochastic, RSI (measure of strength). Based on the latter, we can surmise that should the downtrend continue next week, it is still to far from oversold levels. Oversold levels is at 25, where usually, the market reverses. Current RSI is at 45.11. Moving average seems to indicate a correction, because long term still points positively.

Companies to watch out, based on fundamentals are:

1. SMC
2. SMC B
3. Philex Mining (probable uptrend in excess of 150%, long term given positive income continuity)
4. Vista Land
5. RCBC

With the downtrend of SM, it became a company worth watching. It has an uptrend potential of just 20%, but its continued weakening can pose it for a fundamental buy.

For my part, I am looking at Aboitiz Equity Ventures and Megaworld. Any of the two can be a good buy, given good income results this end of September.

Ayala Corporation (AC) moved up a notch in the stocks list of good buys (from 14 to 13). It is still 24% undervalued.

(Image is from Yahoo! Finance)